The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.

In a general sense accounting is the process of recording business transactionsscientifically. But considering the primary objectives we can say that accounting is the process of recording business transactions permanently for determining the economiccondition of business.

Practical implementation of management techniques to control and report on the financial health of the organization is called accounting management.

Unlike financial accounting, which produces annual reports mainly for external stakeholders, accounting management generates monthly or weekly reports for an organization’s internal audiences such as department managers and the chief executive officer. These reports typically show the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics. Also called managerial accounting.