When it comes to accounting, managerial accountants have twice the responsibility as standard accounts. To preserve an efficient, effective work environment, these workers must maintain supportive, encouraging and definitive practices and policies for themselves and their co-workers. Managerial accounting practices are far different than typical accounting practices, since there is far more responsibility and diverse jobs on an employee’s shoulders. Managerial accounting is a job where accountants are responsible for providing information to the managers and other leaders within the accounting company. Some practices are innovative, while others are traditional and haven’t changed in many years. There are several practices, performed by almost all accounting firms and departments in the world, listed below.

• Variance analysis. This is one of the more difficult aspects to managerial accounting. Managerial accountants, when observing a variance in data, are required under this practice to search and find the cause of such variance. These accountants must determine the reason for the variance and if it poses a problem for the account.
• Standard costs. Managerial accountants are often required to determine the standard cost of items and services. Standard costs refer to the resulting cost of something when taking labor, resource, time and other factors into account. For example, the standard cost of building a new car may be $100,000. The standard cost, however, is not the same as the actual cost of a project or item; managerial accountants must also compare the standard cost to the real cost, an account for differences.
• Balanced scorecard. This is a relatively new introduction to the world of managerial accounting. A balanced scorecard is meant to measure customer satisfaction, determine operational efficiency and keep track of internal improvement plans, activities and processes. Managerial accountants use a balanced scorecard to help determine the efficiency, growth and ongoing improvement of the accounting firm.
• Cost volume profit analysis. This managerial accounting practice requires the employee to gather significant data – such as the cost of a product, amount of sales or labor costs – and determine if the company has profited from a project or sale.

There are other practices employed by managerial accountants that are less specific than those listed above. These include behavioral practices that affect all aspects of the managerial accountant’s job, which includes:

• Efficiency. Managerial accountants should be extremely concerned with efficiency, whether at an individual or corporate level. A managerial account should also be efficient themselves, turning in paperwork on time, completing all required data and performing their job to the best of their ability.