Finance Questions Management versus Accounting

Accounting
Tutor: None Selected Time limit: 1 Day

What are some examples of the differences between financial management and financial accounting?

Mar 8th, 2015

Financial accounting has its focus on the financial statements which are distributed to stockholders, lenders, financial analysts, and others outside of the company.

Managerial accounting has its focus on providing information within the company so that its management can operate the company more effectively. 

While managers are responsible for the efficient operation of a business, accountants are responsible for reporting the results of that effort to the investment community. With these two key points in mind, the difference between financial and managerial accounting is much easier to understand.

Financial and Managerial Accounting Differences

FinancialManagerial
PurposeReporting of ResultsPlan, Control, Improve Operations
End UsersRegulators, Investors, Creditors (External)Line Managers, Executives (Internal)
Time DimensionHistorical, Actual ResultsPlans, Actual Results, and Forecasts
StructurePrescribed by RegulatorsBased on Business Needs
InformationCompany / Enterprise LevelDown to Individual Operating Unit
Data VerificationIndependent AuditsInternal Controls

Mar 8th, 2015

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Mar 8th, 2015
...
Mar 8th, 2015
Dec 8th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer