Difference between Management Accounting and Financial Accounting

Business Finance

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business Financing relates to the finances and loans working in the sector. Finance is the
backbone of an organization which support in performing different kind of activities (Schwartz,
2017). The financial conditions are for the acquisition of inventory, commodities, manufactured
goods as well as other economic activity movements. In this report, the actual different between
management accounts and financial accounts is discussed and their usefulness to the users of
financial information.
TASK
Management accounting: Management accounting is however recognized as managerial
accounting and it can be recognized as a method of offering the managers with financial
information and support when making decisions. It is also used by the organisation's internal
team, and that's the only thing that makes it unique from financial accounting. Through this
process, financial details and records including invoice, overall balance statements are
exchanged with the firm’s management team via finance administration. The aim of this
accounting is to use the statistical evidence and to take smarter and more reliable decisions, to
monitor the organization, market practices and growth.
Financial accounting: The purpose of financial accounting is to provide accounting details
to each and every stakeholders and external regulators. It presents a complete time frame of the
financial situation of a company during an accounting year. Financial accounting is a specialist
accounting division that maintains record of the financial activities within a business. The
transactions are reported, summarized and demonstrated within actual in a financial report,
including a statement of income or a balance sheet, using specialized accounting standard and
guidance.
Difference between Management accounting and financial accounting
Basis For comparison Management accounting Financial accounting
Purpose It is intended mainly for
internal purposes.
This is mainly used for public
monitoring although it is often
checked by management
(Weygandt and et.al., 2018).
Regulation There is no need to follow any It is basically related with