BELOW IS A DISCUSSION BETWEEN FINANCIAL AND MANEGERIAL ACCOUTING I WOULD LIKE YOU TO COMMENT ABOUT IT AND DEMONSTRATE MORE DEPHT AND TOUGHTS THAT SIMPLY STATING THAT "I AGREE" OR "YOU ARE WRONG" BUT HAVE TO MAKE SURE YOU PROVIDE MEANINGFUL AND RELEVANT RESPONSE POSTS WITH CLARIFYING EXPLANATION AND DETAIL. PLEASE DONT DO NO LITTLE EXPLANATION OR DETAIL BECAUSE I WILL NOT PASS.

Financial vs managerial accouting

Financial and managerial accounting work side by side to help run a successful business. Financial accounting creates reports to express past financial information to external sources such as investors, creditors, and government agencies, these reports are called financial statements. Managerial accounting creates reports to predict future expenses and budget for those expenses. Financial and managerial accounting both report on the money flowing through the company but the reports they make are for completely different reasons. Some of the differences include the time frame in which they are reported, who the reports are created for, and what the reports are created for.

Financial accounting is reported on a quarterly or annual basis. The information gathered reports on the past operations, financial position and cash flow. The financial statements created benefit investors, creditors, managers and government agencies. The reports created are audited by the CPA and GAAP for verification of accurate business finances. Managerial accounting is reported on daily or weekly to adjust product pricing or expenses that will help keep the company competitive. These reports hold details that help managers make decisions in running the business, unlike financial accounting the reports contain proprietary information. Reports are created on products, departments, and territories to prepare a plan of action moving forward, these plans are used to control operations.