Accounting: Managerial and Financial

Subject  > Businesss Research Papers  > Accounting

Managerial and financial accounting are two very different types of accounting. They differ so much, that many schools offer separate classes on both. The uses and users of both types of accounting vary as much as the information provided by each. In this paper, the differences between managerial and financial accounting will be discussed. The users and decisions that are able to be made with both will also be discussed. Managerial AccountingManagerial accounting provides financial analysis and further interpretations. This analysis and interpretation assist managers and other organization heads with establishing policies and decision. This will ultimately help with the controls of current and future organizational operations. Since managerial accounting has experienced the necessary changes as a result of the fundamental ...

... managers compare and contrast the budgeted amounts to the difference amounts, and later decide which differences are significant enough to act upon. Financial accounting provides information to stockholders, creditors, and other parties who are external to the company. This information is important for the decision makers. It must be relevant, reliable, and comparable. Simply, the decisions made using financial accounting are decisions regarding the liquidity of the company. Financial accounting focuses of the enterprise or company as a whole. Financial reports are based almost exclusively on historical transactions and provide the framework for future investments. ConclusionManagerial and financial accounting are two very different types of accounting. Managerial accounting is used by managers and employees of a company

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