Chardoney T.

Rocamora
Compare Managerial accounting from Financial Accounting.

 Managerial Accounting- Managerial accounting is the practice of identifying,

measuring, analyzing, interpreting, and communicating financial information to managers
for the pursuit of an organization's goals. It varies from financial accounting because the
intended purpose of managerial accounting is to assist users internal to the company in
making well-informed business decisions (Tuovila, 2021)

 Financial Accounting- Financial accounting is the process of recording, summarizing

and reporting a company’s business transactions through financial statements.

Differences:
MANAGERIAL ACCOUNTING
Managerial accounting is the practice of identifying, measuring, analyzing,
interpreting, and communicating financial information to managers for the pursuit of an
organization's goals.
The main objective of managerial accounting is to produce useful information for a
company's internal use.
The Managerial Accounting reports are highly useful for proper planning, organizing,
staffing, directing, controlling and decision-making.

FINANCIAL ACCOUNTING
Financial accounting involves recording, summarizing, and reporting the stream of
transactions and economic activity resulting from business operations over a period of time to
the public or regulators.
Financial accounting has some internal uses as well, but it is much more concerned
with informing those outside of a company.
The Financial Accounting reports are not useful for planning, organizing, staffing,
directing, controlling and decision-making.

Similarities:

 Both are concerned with financial statements, revenues, expenses, assets, liabilities and
cash flows.
 Both are determining and measurement of costs for different accounting periods and
even for different departments and sections.
 The same accounting principles and concepts are used in both system of accounts for
the purpose of cost accumulation and cost allocation.
 Both are the parts of total accounting information system.