What is the difference between Financial Accounting and Managerial Accounting? - financial and managerial accounting
Does this mean that there are two different accounting systems should be followed? Some are accountants who work for a company to act as auditors or financial management or are simply all the switches are ordered? Do you have an accountant functions perform a financial and management? Explain and support
Friday, January 8, 2010
Financial And Managerial Accounting What Is The Difference Between Financial Accounting And Managerial Accounting?
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You can do both functions, if your plant is a small, but if you can make a big, two accountants in the firm. Financial and controlling both prepare and analyze financial data. However, some aspects in these two areas are very different. The differences are many users of information, the types of information, supervision and reporting frequency.
Users Information
Financial and account information for both user groups. Financial accounting provides information primarily for external users of accounting data, and investors and creditors. In addition, management accounting provides information for internal users of accounting data. Internal users are employees, managers and entrepreneurs.
Types of information
The type of information needed by different user groups vary. External users are based primarily on financial information about the company. Analyze this information in conjunction withion of the general economic information, including information about the area in which the company operates. External users are on a wide range of information that shows the overall performance of the company as a whole, concentrated. In addition, the only financial accounting provides information about financial transactions that occurred in the past.
Internal users need financial information about the company, such as check information on the financial statements. They also use non-financial information about the company, such as in customer satisfaction and competitive data. Internal users focus on the detailed information that the performance of sub-units of the company, such as departments or agencies are revealed. In addition, accounting information focuses on the past and present, and anticipate future financial transactions.
Regulatory oversight
To protect the public interest, the financial accounting by the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB) and the Public Company AccountingOversight Board (PCAOB). Instead, management accounting is not regulated by a specific organization. Because the information is through the management accounting for internal users only and is not open to the public. Therefore, since there is no public interest is no need for the public interest in regards to this information to protect.
The frequency of reports
The objective of financial accounting is the presentation of historical information. The information provided at regular intervals. It is often divided into monthly, quarterly and annual reporting periods. At the very least, the financial report annually.
Instead, the management accounting information is regularly reported. Internal users need to evaluate potential past, present and future of the information to make decisions. Therefore, these users may continue to need information to make good decisions.
You can do both functions, if your plant is a small, but if you can make a big, two accountants in the firm. Financial and controlling both prepare and analyze financial data. However, some aspects in these two areas are very different. The differences are many users of information, the types of information, supervision and reporting frequency.
Users Information
Financial and account information for both user groups. Financial accounting provides information primarily for external users of accounting data, and investors and creditors. In addition, management accounting provides information for internal users of accounting data. Internal users are employees, managers and entrepreneurs.
Types of information
The type of information needed by different user groups vary. External users are based primarily on financial information about the company. Analyze this information in conjunction withion of the general economic information, including information about the area in which the company operates. External users are on a wide range of information that shows the overall performance of the company as a whole, concentrated. In addition, the only financial accounting provides information about financial transactions that occurred in the past.
Internal users need financial information about the company, such as check information on the financial statements. They also use non-financial information about the company, such as in customer satisfaction and competitive data. Internal users focus on the detailed information that the performance of sub-units of the company, such as departments or agencies are revealed. In addition, accounting information focuses on the past and present, and anticipate future financial transactions.
Regulatory oversight
To protect the public interest, the financial accounting by the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB) and the Public Company AccountingOversight Board (PCAOB). Instead, management accounting is not regulated by a specific organization. Because the information is through the management accounting for internal users only and is not open to the public. Therefore, since there is no public interest is no need for the public interest in regards to this information to protect.
The frequency of reports
The objective of financial accounting is the presentation of historical information. The information provided at regular intervals. It is often divided into monthly, quarterly and annual reporting periods. At the very least, the financial report annually.
Instead, the management accounting information is regularly reported. Internal users need to evaluate potential past, present and future of the information to make decisions. Therefore, these users may continue to need information to make good decisions.
The key difference between financial accounting and cost accounting is that financial accounting is to provide information to others outside the company. Given that the accounting information management aims to help decision makers in the organization to make decisions.
Financial has more to do with the financial data of the company in accordance with GAAP. Management Accounting is all a cost analysis on the internal.
Like someone said, a large company, many different functions and counters with a very small company can have a person who has everything does.
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