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...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
The term business financing can be described as the activities which contribute to the
acquisition and maintenance of capital funds to meet an organization's financial demands and
general objectives (Bendell and Doyle, 2017). Business accounting is too valuable for
organizations to make strategic choices by internal accounts. The project report is focused on the
distinction in management account and financial account. As well as role of both of accounting is
mentioned in detailed manner under the report.
MAIN BODY
Explain difference between management account and finance account. Along with their
usefulness to users of financial information.
Management account- Management accounts are also known as management accounts and can
be defined as a tool to provide essential management details in order to make choices. The
management account is used exclusively by the management office of the organization, and is a
mixture of financial which non-financial details which are connected to internal reporting
systems by means of monetary and nonmonetary details. Throughout this context, it is necessary
to note that this account is only used by the internal corporate team. This is not beneficial for
external stakeholder of companies.
Finance account-The description, review and reporting of financial transactions relevant to the
company focuses on financial accounting (Canales, 2016). That involves writing the annual
records that are made accessible. It simply contains accounting statistics. Such accounts can
often be used by external stakeholders, not simply by internal stakeholders. This accounting is
essential for companies who involves in trading in stock exchange.
Herein, below difference between management account and finance account is done below in
such manner:
Basis Management account Finance account
Preparation This is created under management
accounting.
It is provided with financial accounting
assistance.