Comparison of management accounting and financial accounting - WikipediaFinancial accounting and managerial accounting are two of the four largest branches of the accounting discipline tax accounting and auditing are the others. Despite many similarities in approach and usage, there are significant differences between the two. These differences center around compliance, accounting standards , and target audiences. The main objective of managerial accounting is to produce useful information for a company's internal use. Business managers collect information that encourages strategic planning, helps them set realistic goals, and encourages an efficient directing of company resources.
MANAGERIAL vs FINANCIAL ACCOUNTING
Trends in managerial and financial accounting
The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organisation, while financial accounting is aimed at providing information to external parties. In today's advanced manufacturing environment, various issues arise for accounting standard-setting practicing professionals. Solving the separate issues of managerial and financial accounting is a significant challenge, and IJMFA assists researchers in overcoming these challenges in an efficient, effective manner. The objectives of IJMFA are to establish an effective channel of communication between policy makers, government agencies, academic and research institutions and persons concerned with the complex role of accounting in advanced manufacturing environments. It also aims to promote and coordinate developments in all areas of managerial and financial accounting.
A common question is to explain the differences between financial accounting and managerial accounting , since each one involves a distinctly different career path. In general, financial accounting refers to the aggregation of accounting information into financial statements , while managerial accounting refers to the internal processes used to account for business transactions. There are a number of differences between financial and managerial accounting, which fall into the following categories:. Financial accounting reports on the results of an entire business. Managerial accounting almost always reports at a more detailed level, such as profits by product, product line , customer , and geographic region.
Studies in Managerial and Financial Accounting is abstracted and indexed by: Scopus, Summon (ProQuest), Thomson Reuters' Book Citation Index.
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Does Managerial Accounting Follow GAAP?
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