Financial Management And Accounting
18 June 2011Accounting is generally considered to have two separate management and financial accounting. Management accounting, seeking to satisfy the needs of managers and financial accounting, designed to meet the accounting needs of all users. The differences between the two types of accounts reflect the different user groups they serve. In summary, the main differences are:
* The nature of the reports produced. Financial accounting reports tend to be general purpose. In other words, they contain financial information that will be useful for a wide range of users and decision-making rather than being specifically designed for the needs of a particular group or set of decisions. Management accounting reports, on the other hand, often for a particular purpose. They are equipped with either a particular decision in mind or a particular leader.
* Level of detail. Financial reports to provide users with a broad overview of the results and for businesses. Consequently, the data are combined and the information is often lost. Management accounting reports, however, often with the leaders to help them in some detail, focusing on operational decision.
* Regulation. The financial reports of many companies, are subject to accounting rules that try to ensure that occur with standard content in a standard format. The law and accounting rule setters imposed by this regulation. Because management accounting reports are for internal use, there is no regulation from outside sources on the form and content of reports. They can be designed to meet the needs of managers in particular.

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