Analysis of Financial vs Managerial Accounting: A Comparative Study

This report provides a comparative analysis of financial and managerial accounting. It highlights the key differences in their functions, objectives, and reporting methods. Financial accounting focuses on external reporting, adhering to accounting standards and providing information for stakeholders. Managerial accounting, on the other hand, is geared towards internal use, providing detailed insights to facilitate decision-making within the company. The report discusses the differences in the nature of information provided, the format of reports, and the regulatory requirements. It references relevant literature to support the analysis, offering a comprehensive understanding of the two types of accounting and their roles within a business context. The report emphasizes the importance of both types of accounting in the effective management and financial control of a business.

Financial Question

Contents
Q3) Critically analyse the functions of Financial vs managerial accounting..............................3
REFERENCES................................................................................................................................1
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Q3) Critically analyse the functions of Financial vs managerial accounting.
There are certain types of accounting and of which Financial and Managerial Accounting
are of the significant kind. Financial accounting is that type, which is related to the analysis,
summary and reporting of financial transactions, whereas, Managerial accounting, is such that
emphasis more on information providing of a company in order to regulate the functioning of
company more precisely.
Generally financial accounting is use to refer the arrangement of accounting information
in a financial statement, on the other hand managerial is used to regulate the internal process of
business transactions (Weygandt, Kimmel and Kieso, 2015). Financial analyse on the
profitability and the efficiency of a business but the managerial scrutinises the specific problems
and gives suggestions to how to make them proper. Financial accounting has to comply with
certain accounting standards, whereas, it is adverse in the managerial accounting.
Financial accounting is compulsory process but the managerial one is not that mandatory.
Monetary information is provided by the financial, while managerial provides both, monetary
and non-monetary information. The format of financial accounting is specified where as there is
no such provision in managerial. The reports are summarised in financial but there is detailed
and complete report regarding certain information in managerial. Also, it is essential to publish
the financial accounting information, moreover is has to be audited by the statutory auditors. In
management accounting, it is not necessary to publish and audit because they are implied for the
internal process only.

REFERENCES
Books and Journals
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting. John
Wiley & Sons.
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