Management accounting supports each stage of the management process.

When managers plan, they work with management accounting to establish strategic, tactical, and operating objectives that reflect their company’s mission and to formulate a comprehensive business plan for achieving those objectives.

The plan is usually expressed in financial terms in the form of budgets. When managers implement the plan, they use the information provided in the budgets to manage the business in the context of its supply chain. In evaluating performance, managers compare actual performance with planned performance and take steps to correct any problems. Reports reflect the results of planning, executing, and evaluating operations and may be prepared for external or internal use.