What's The Difference Between The Financial And Management Accounting?

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What's The Difference Between The Financial And Management Accounting?

3 Answers

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Answer 1

Management accounting differs from financial accounting in several ways. Management accounting information is intended for internal users, whereas financial accounting information is directed towards external users.

Management accounting is not bound by the externally imposed rules of financial reporting. Furthermore, it tends to be more subjective and uses both financial and non financial measures, whereas financial accounting provides audited, objective financial information. Management accounting is more broader and multidisciplinary.

Answer 2

Anonymous answered

Difference between financial accounting and management accounting
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Answer 3

Managerial accountants provide reports for management to use in decision making while financial accounts provide information for outsiders' use such as stockholders, creditors, tax regulators, security agents etc. Managerial accounts do not follow a set of ground rules they proviide reports by segments while financial accounts provide provide reports based on past financial transactions or historical data; managerial accounts prepare reports for future use .