Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is the difference between managerial accounting and financial accounting?

Which one is more significant in accounting.

user-image
Question ajoutée par Tanveer Ali , Accounts Manager , Damcon Engineering Solution Pvt Ltd
Date de publication: 2016/11/08
Utilisateur supprimé
par Utilisateur supprimé

Simply,

Financial accounting has its focus on the financial statements which are distributed to stockholders, lenders, financial analysts, and others outside of the company.

Managerial accounting has its focus on providing information within the company so that its management can operate the company more effectively.

Arnaldo Molina
par Arnaldo Molina , Controller & Regional Director , Tandem

If you consult Investopedia.com , the key difference between financial and managerial accounting is that financial accounting aims to provide information to parties outside the organization whereas managerial accounting  is aimed at helping managers within the organization to make decisions. Financial statement preparation using accounting principles is relevant to regulatory organizations such as tax authorities and financial institutions.  On the other hand, if you have several business groups or business areas, or your legal entity operate in a multiple countries or geographies,  a P&L and Cash Flow by business area or geography could help to analyze your business performance.  Although P&L ´s by business area are not mandatory, they are a good example of managerial accounting reports. At the end, they would  be more convenient  to analyze your organizational performance and to trigger actions when and where required.

krishnamoorthy Achutham
par krishnamoorthy Achutham , DY Manager (Accounts) from April , DCW LIMITED,

Financial accounting is the department where all financial and non financial transactions are recorded in books that is posting in ledgers.Managment accounting is  a department where analysing the dats,ex making cost staements for different scenarios of production and analysing the   feecebility, new projects viability etc.

Imran Ahmed Mirza
par Imran Ahmed Mirza , Accounts Supervisor , Value Added Services Corp. client at Jang Group of Newspapers

Managerial accounting has its focus on providing information within the company, its primary requirements just only decision making and interpretation so that its management can operate the company more effectively. Financial accounting has its focus on the financial statements which are distributed to stockholders, lenders, financial analysts, and others outside or inside the company.

Majid Wangade
par Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )

Managerial accounting is more concerned with operational reports, which are only distributed within a company Standards. 

The financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when it compiles information for internal consumption.

 

More Questions Like This

Avez-vous besoin d'aide pour créer un CV ayant les mots-clés recherchés par les employeurs?