Management Accounting and Financial Accounting Essay Example for Free

heed be and Financial Accounting EssayThe differences between precaution explanation and financial accounting intromit1 1. Management accounting provides information to people within an organization while financial accounting is principally for those outside it, such as shareholders 2. Financial accounting is required by law while management accounting is not. Specific standards and formats may be required for statutory accounts such as in the I.A.S worldwide Accounting Standard within Europe. 3. Financial accounting covers the entire organization while management accounting may be concerned with particular products or cost centres. Managerial accounting is use primarily by those within a corporation or organization. Reports can be generated for any period of succession such as daily, weekly or monthly.Reports are considered to be future looking and have soothsaying comfort to those within the company. Financial accounting is used primarily by those outside of a compa ny or organization. Financial reports are usually created for a set period of time, such as a fiscal year or period. Financial reports are historically factual and have predictive value to those who wish to make financial decisions or investments in a company. Management Accounting is the branch of Accounting that deals primarily with confidential financial reports for the exclusive use of top management within an organization. These reports are vigilant utilizing scientific and statistical methods to arrive at certain monetary values which are then used for decision making. Such reports may include* Sales Forecasting reports* Budget analytic thinking and comparative analysis* Feasibility studies* Merger and consolidation reportsFinancial Accounting, on the other hand, concentrates on the production of financial reports, including the staple reporting requirements of profitability, liquidity, solvency and stability. Reports of this nature can be accessed by internal and external u sers such as the shareholders, the banks and the creditors.