Relationship between Managerial and Financial Accounting

Financial Accounting

Financial accounting or, simply, accounting is the technique by which are collected, sorted, recorded, added together and reported measurable operations money by an economic entity. It is the proper usage of certain accounting principles to record, classify and summarize, in monetary terms the financial and economic data to report in timely and reliable operations of the life of a company. Its purpose is to review the external financial and economic activities of enterprise, based on data from public finance (accounting) and statistical reporting.

Functions and its Usage

Economic life history of a company is easily maintained by financial accounting.

It records and maintains the past record which benefit in the present and future. Information accuracy is required.

Generally Accepted Accounting Principles (GAAP) must be followed.

It is compulsory for external reports.

Accounting and control. Within this function, we are talking about organizing a comprehensive accounting of funds business, financial reporting, oversight over the implementation of financial solutions. The implementation of this function requires the development of management accounting. The essence of the organization managing the famous triad of "price, cost and profit."

The Goal of Financial Accounting

It is to prepare the financial statement for each financial period. The financial statement represents your company. It shows the actual financial position of the company.

Government for your taxes or your business.

Your financial institution to apply for credit (margin, borrowing, lending and credit card).

Any other lender or creditor at a fundraiser.

Managerial Accounting

Managerial Accounting (Management Accounting) - regulated system of identifying, measuring, collecting, recording, interpretation, synthesis, preparation and provision of important decision-making on the activities of the company information and indicators to managers of the company (internal users - managers). Its function include the preparation of reports in managerial accounting does not require the ...