Financial Accounting vs. Managerial Accounting

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mainly for external use
financial
mainly for internal use
managerial
helps external users make financial decisions
financial
helps managers make decisions, plan, direct, and control
managerial
driven by GAAP
financial
not driven by GAAP
managerial
looks at the previous year
financial
looks to the future
managerial
ONLY financial data
financial
not just financial data
managerial
prepared quarterly or annually
financial
prepared any time, anywhere, for any purpose
managerial
all about verifiability
financial
all about relevance (timeliness)
managerial
focuses on company as a whole
financial
focuses on operating segments
managerial
not so detailed
financial
very detailed
managerial
Categories: Financial Accounting