Assignment

DIFFERENCE BETWEEN FINANCIAL AND MANAGERIAL

ACCOUNTING

Submitted to
Ma’am Aleena Abbas

Submitted by
NAME
AOUN ALI AKBAR
Roll#
B.B.F.E-19-16
Program
B.B.A (B&F) EVENING
Semester 5TH
 Difference between Financial and managerial Accounting
Financial Accounting Managerial Accounting

 Financial accounting reports on the  Managerial accounting reports on

profitability (and therefore the specifically what is causing problems
efficiency) of a business. and how to fix them.

 Financial accounting reports are used  Managerial accounting reports are

by outsiders to decide whether to invest more likely to be of use in improving
in or lend to a business. operations

 Financial accounting pays no attention  Managerial accounting is interested in

to the overall system that a company finding the various ways to enhance
has for generating a profit, only its profits by resolving issues.
outcome

 Pay levels tend to be higher in the area  Somewhat lower for managerial
of financial accounting accounting

 Financial accountancy is legally  Managerial accounting is not required

required and expected by law. by any law or norm

 Financial accounting requires reports  Managerial accounting works with

to be maintained with acute precision estimations and hardly on precise,
so that their accuracy is not in question. verifiable or proven details or facts
 Financial accounting reports are  Managerial accounting reports could
derived after a set period of time such be provided to cover any specific
as a fiscal year or quarter for those period such as a day, month, week or
outside the company. month

 Financial accounting reports and other  Information for managerial accounting

material are case based. is based on model and abstract to some
level in support of decision making

 Monetary information only  Monetary and non-monetary

information.

 Required to be published and audited  Neither published nor audited by

by statutory auditors statutory auditors.

 Financial accounts are reported in a  Format is informal and is on a per

specific format, so that different department/company basis as needed
organizations can be easily compared