Financial Accounting And Managerial Accounting Essay
Financial accounting and managerial accounting are both used to deliver facts about the organization to a decision maker. Managerial accounting is often mentioned as “cost accounting”. This is the method of categorizing, calculating, investigating, understanding, and connecting data for determining the businesses goals. Managerial accounting and financial accounting vary in significant ways, managerial accounting is designed to assist managers in the business to make assessments, and financial accounting gives information to outside groups (“Managerial Accounting Definition | Investopedia,” n.d.). Financial accounting has to follow the GAAP structure guild lines, whereas the managerial accounting is more flexible. In managerial accounting information is readily accessible, and financial accounting is only obtainable once an audit has been performed. Information disclosed in financial accounting is only monetary, but in managerial accounting information given is both monetary and nonmonetary. The data prepared in financial accounting main focus is the entire organization, however, in managerial accounting the attention is projects, processes, and subdivisions (Bethel University, 2011, p. 194).
Financial accounting is used to organize financial reports that offer information about a business’s development to outside parties. These groups may include investors, creditors, and tax authorities. Financial…