Financial accounting and management accounting

5/10/2021

 

Financial Accounting

Management Accounting

Purpose

Provide information related to financial situation and busines performance for both internal and external users

Provide information for internal management and direction

Information Receiver (users)

Internal users and external users such as investors, tax authorities, finance agencies, banks, statistical agencies

Internalusers (Ex: Board of Managements, Board of Directors,..)

Reporting basis

Reports are based on accounting standards and regulations. Accordingly,reports of different companies can be compared with each other, andpublic users will able on the same page when reading reports.

Reports are based on the internal policies of each enterprisethus the reports of differententerprises are hardly comparable.

About the accounting books

Compliant with guidance of regulations

Compliant with guidance of enterprises

Information characteristics

Based on past transactions

Not only based on past transactions, but also on future transactions whichare not alwaysavailable.

Reporting templates

Balance Sheet, Income Statement, Cash Flow Statement, Notes to Financial Statements

Templates are designed basing on management requests. Reportscan be designed for each department, and each stage of processes. Ex: reports on production costs, reports on debts, reports on import-export of inventories ...

Reporting period

Quarterly and annually

Annually,Quarterly, Monthly, Weekly, Daily