Difference between financial accounting and management accounting?
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Managerial accounting is more concerned with operational reports, which are only distributed within a company. … Financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when information is compiled for internal consumption. Systems.
The main objective of Financial Accounting is to provide the financial information to the outsiders so as to interpret the financial position of the company whereas the main objective of Management Accounting is to assist the management in decision making.
Financial Accounting is an accounting system that emphasis on the planning of financial statement of an administration to provide the financial information to the interested parties whereas Management Accounting refers to the accounting system which provides relevant information to the managers to make policies, plans and strategies for running the business effectively.