The difference between financial and managerial accounting

Financial accounting is a specific branch of accounting involving a process of

recording, summarizing and reporting the myriad of transactions resulting from business
operation over a period of time. These transactions are summarized in the preparation of
financial statements, including the balance sheet, income statement and cash flow statements,
the record the company’s operating performance over a specified.
Managerial accounting is the practice of identifying, measuring, analysing,
interpreting and communicating financial information to managers for the pursuit of an
organization’s goals. The intended purpose of managerial accounting is to assist users
internal to the company in making well-informed business decisions.
In aggregation, financial accounting report on the overall revenue of the business
while accounting almost always report on a more granular level, such as profitability of
products, product lines, customers, and geographical.
Then, in the efficiency of financial accounting report on the profitability and hence
efficiency of a business, while the management accounting report specifically on what caused
the problem and how to fix it.
Proven information. Financial accounting requires a record kept with great accuracy,
which is required to prove that the financial statements are correct. Management accounting
often deals with budgets, not fact that are proven and verifiable.
In the systems, financial accounting pas no attention to the overall system that a
company has for generating a profit, only its outcome. Conversely, managerial accounting is
interested in the location bottleneck operations and the various ways to enhance profits by
resolving bottleneck issues