Can you give us one difference between Management Accounting AND Financial Accounting?

*-Financial Accounting restricted the assumptions and accounting principles

Management accounting is not

* Financial Accounting aims to supply information to outside parties such as owners & banks

Managerial Accounting aims to support the parties to an internal administration

* - Financial Accounting based on objective information and the ability to check and review

  Management accounting is based on the financial and accounting data are analyzed   forthe administration

Financial Accounting is easy as compared to Management Accounting

Management accounting is meant for company management based on financial data.It is meant for management use (internal).Financial accounting throws light on the financial position of a company to ousiders, shareholders.

Financial accounting deals with system of recording, classifying and summarizing in order to deliver financial statements.

Financial management reports are mostly for internal uses, and are prepared by taking information's from the financial statements  and comparing them with allocated budget and analyzing the information's for decision making and for control purposes.  

Financial Accounting is:

For internal and external stakeholders

Subject to Statutory Auditing

Reports contents are defined by IFRS / GAAP

While Management Accounting is:

For internal stakeholders only

Not subject to Statutory Auditing

Reports contents are defined by the management

 Managerial accounting need not follow generally accepted accounting principles (GAAP), while financial accounting must follow them

Financial accounting is used to present the financial health of an organization to its external stakeholders. Board of directors, stockholders, financial institutions and other investors are the audience for financial accounting reports.     

Management or managerial accounting is used by managers to make decisions concerning the day-to-day operations of a business.