In general, accounting as well as a tool to show the government that we pay our taxes, is used as a means to effectively measure how our business is operating and make decisions regarding the progress of it. The problem is sometimes in the possibility that accounting gives a biased information or not as simple to interpret as we would like in order to make the decisions that affect our business. This produces delays or decisions that are not entirely correct. To avoid these problems is for which certain management accounting services are required
It should be noted that financial accounting includes certain things to build on, but it does not give per se answers to all the questions that arise within the framework of the company. That is why it is often complemented by an accounting consulting service as a management control of the company itself.
Problems can arise when managing a company with financial accounting mainly for two reasons. The first one is because our accounting is not performed in the most optimal way possible and the second because even though the complexity of our activity is well performed, it prevents us from reaching an optimal point. For the former, a better accounting or training service for existing staff is the best solution, but for the second case it may be worth going into more ambitious cost accounting. This involves treating accounting in a way that more reliably shows the values that management needs to choose from the available options as well as accurately measuring how much each product or service costs.
I can not emphasize with sufficient intensity the importance of knowing EXACTLY how much it costs us to produce what we sell, because it is a way that in the future can allow us to work with more ambitious methodologies (Lean, PDCA ...) and generally eliminate superfluous expenses and make a Continuous improvement. I know that many entities do not have this value calculated, but without it it is impossible to apply complex management techniques.
It is also important to know how to calculate ratios and analyze the accounting for each decision that is made within the company, especially in the case of important decisions for the future of the company.