Key Differences Between Management Accounts and Financial Accounts

The key differences between management
accounts and financial accounts and their
usefulness to the users of financial information

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
CONCLUSION...........................................................................................................................................5
REFERENCES............................................................................................................................................7

INTRODUCTION
The term business finances can be defined as practices which relate to the procurement
and management of capital funds in order to fulfill the financial needs and particular goals of an
entity (Paramati, Alam and Chen, 2017). The project report focuses on the differentiation of
financial account and management accounts and their importance to businesses in making
strategic decisions via internal control options. The report on the project often relates to its
usefulness for companies for various kinds of operations.
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 referred to as business accounting which
can be described as the way for management to have the main decision-making information. It is
linked to the compilation of internal assessments by the financial and non-monetary information
retrieval forms, which generally serve as a combination of financial and non-financial data for
the company's management committee (Chadwick and Flinchbaugh, 2016). In this respect, it
must be remembered that this account will only be given by the company's internal staff.
Finance account- Financial accounting is the basis of the description, analysis and reporting of
financial activities for businesses. It involves creating accounting statements that are publicly
available. This report contains only financial details. Such accounts may be used not only by
domestic owners, but also by external parties.
Herein, below difference between management account and finance account is done below in
such manner:
Basis Management account Finance account
Preparation These accounts are prepared on the
basis of management accounting.
While these accounts are produced under
financial accounting.
Information Here are all forms of details, such as
monetary and non-monetary are
By the end of the fiscal year, financial
statements normally are published for a