Difference between Management Account and Finance Account

BUSINESS FINANCE

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Explain difference between management account and finance account. Along with their usefulness to
users of financial information..................................................................................................................3
CONCLUSION...........................................................................................................................................5
REFERENCES............................................................................................................................................7

INTRODUCTION
The term business finance can be defined as those operations that contribute to the
procurement and management of capital funds in order to fulfill the financial requirements and
general goals of an organization. Management accounting is too useful for business entities in
order to take crucial decisions which become possible by help of internal reports (Atrill, 2015).
The project report is based on difference between management account and finance account. As
well as their usefulness is also mentioned in the project report.
MAIN BODY
Explain difference between management account and finance account. Along with their
usefulness to users of financial information.
Management account- Management accounting is also recognized as managerial
accountancy and can be described as a mechanism for supplying the key information to
management for choice-making. It is linked to process of preparing internal reports by help of
monetary and non monetary information (Weetman, 2010). Management accounts are utilized
solely by the firm's management department, which is the combination of financial and non
financial information. Herein, this is important to know that this account is used only by the
internal department of business entities.
Finance account- Financial accounting is the focus of the description, review and recording of
company-related financial activities. This includes the preparation of publicly accessible
financial reports (Watson Head, 2016). Under it, only financial information is included. As well
as these accounts are not limited to the internal stakeholders but also these can be used by
external stakeholders also.
Herein, below difference between management account and finance account is done below in
such manner:
Basis Management account Finance account
Preparation This is prepared under management It is prepared by help of financial