| Accounting information can be categorised into | | | | Middle managers are the information users of |
| two broad fields. In the first instance, you can | | | | tactical information. Middle managers usually use |
| classify it as financial or non-financial. Then, it is | | | | this to plan and monitor allocation of resources |
| also instructive to divide accounting information | | | | within the organisation. Tactical information is |
| based on the three levels of decision-making | | | | mainly internally generated, since the focus is |
| within an organisation: strategic level, tactical level | | | | narrower compared to the strategic level. It is |
| and operational level. | | | | also short and medium term in scope and relates |
| Financial information refers to processed | | | | to business activities or functional departments. |
| quantitative data that assigns a value, cost or | | | | Quantitative measures are the premise of tactical |
| demonstrating the flow of cash to the | | | | information and they are prepared routinely and |
| organisation, a department or even an activity. | | | | regularly as well. |
| Cost information (relating to expenditure) is a | | | | Operational information, as its name suggests, is |
| significant output of financial data. Income and | | | | the type that operational managers and |
| revenue is also a vital outcome of financial data. | | | | supervisors use to plan, direct and control |
| Non-financial information plays an important role in | | | | activities at this level. It is highly detailed - not |
| decision-making, especially with the increasing | | | | requiring the level of abstraction of the |
| prominence of 'green' accounting and the | | | | higher-level information. Naturally, accountants |
| increasing emphasis on the social responsibility of | | | | derive data for this purpose from internal sources. |
| organisations. Non-financial information might detail | | | | Unlike strategic and tactical information, it is |
| the effect of an activity or change in cost | | | | generated very frequently (sometimes daily), with |
| structures of an activity. It involves detailing | | | | an exclusively short-term focus. Like its tactical |
| events and facts about both internal and external | | | | counterpart, operational information is largely |
| factors and is most essential for managerial | | | | qualitative and relates to tasks or activities, usually |
| accounting. | | | | within a specific department. |
| Strategic information corresponds to the strategic | | | | Knowing the different types and characteristics of |
| level of the organisation. Therefore, the users are | | | | information required provides a useful guideline to |
| typically senior managers or executives. Such | | | | accountants about how accurate the information |
| information is highly summarised or abstracted, | | | | needs to be and the level of detail required, |
| derived from internal and external sources, is both | | | | among other things. |
| qualitative and quantitative, has a long-term focus | | | | Read about the characteristics of good accounting |
| and usually covers the entire organisation. | | | | information. |