Managerial accounting is the process of identification, measurement, analysis, and interpretation of accounting information that helps business leaders make sound financial decisions and efficiently manage their daily operations, according to the Corporate Finance Institute. Unlike other branches of accounting, this role is focused on internal data gathering and reporting, meaning professionals do not typically work with or advise external clients. Instead, managerial accountants focus on understanding their company s cash flows, financial transactions, operating costs and internal rate of return. Once collected and analyzed, this accounting information is translated into reports and presentations that inform capital budgeting decisions and future investments.

Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals. It varies from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.