Management accounting

Certified Management Accountant provides added value to business

What benefits a certified management accountant brings to your business?

Financial planning, Management accounting / By Jachim Gobien

Not every accountant is the same. Certified Public Accountants (CPA) and Certified Management Accountants (CMA) provide distinct services. The difference between the two is not widely understood outside of the accounting profession and established companies. While CPAs or financial accountants are primarily focused on maintaining your financial records, CMA’s core task is to provide management …

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It is essential to calculate the value and payback period of business investment.

How to calculate the value and payback period of business investment?

Management accounting / By Jachim Gobien

When a business invests in a new piece of machinery, this is known as a capital expenditure. It is vital to every business to ensure that their capital expenditures, especially if they represent a major investment, create value instead of destroying value. The systematic process of identifying, analyzing, and selecting the best investment is called …

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How much must be sold to break even or to realize a target profit?

Management accounting / By Jachim Gobien

While every company needs to know the answer to this question, the answer is even more vital for start-ups that do not have much margin for error. This is because the revenues will exactly equal the expenses at the breakeven point. In other words, the company does not incur a loss nor does it realize …

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