Strategic Management Accounting

In recent years, with the continuous growth of the overall level of economic society and the transformation of institution reform, various non-profit sectors development quickly and in modern society are increasingly affected, many past commitment by the government replaced gradually by non-profit sectors. Not-for-profit sectors are renascent in social economic development whose healthy progressing relies on its management levels. I will describe the role and importance of the application of strategic management accounting in public and not-for-profit sectors and analyzes its conceptions and methods, combining with its management characteristics.

1. The role and importance of the application of strategic management accounting in public and not-for-profit sectors

Strategic management accounting is the need of public and not-for-profit sectors effectively use of social resources.

The existence and development of public and not-for-profit sectors mainly depends on social various departments, all levels of human, material and financial resources of continuous injection. The resources of not-for-profit sectors all or part from the government budget allocations and accept donations. Resources provider does not expect to recover wealth, nor agreed to provide the financial resources according to the proportion of shared economic interests. Therefore, not-for-profit sectors operator do not have requirements of sector value maximization and the strong driving force and pressure to increase economic efficiency from resources provider. The not-for-profit sectors do not have profit targets, generally not with micro economic benefits but with macro social benefits as the purpose of the operation, and the size of the social benefit is difficult to use quantitative indicators to measure, so easily lead to management and reduce the utilization efficiency of social resources, reduce the level of overall social welfare. Thus, in order to strengthen the management of