What is the difference between management accounting and financial accounting?

Questions › What is the difference between management accounting and financial accounting?
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Deepak Goyal asked 2 years ago
   
3 Answers
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Akshaj Singh answered 2 years ago
Management accounting is a subset of financial accounting. It is concerned with the management of an organization and its resources, whereas financial accounting is concerned with the recording, analyzing, and reporting of financial transactions. Management accountants are responsible for budgeting, planning, controlling expenses and profits, forecasting future trends in sales and expenses. They also monitor the performance of firms in order to improve them. Financial accountants are responsible for recording the financial transactions that occur within an organization. They also analyze these transactions to determine their impact on profitability or solvency.
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Nikhil Rawat answered 2 years ago
Management accounting is the process of planning, organizing and controlling an organization's resources to achieve its goals. Financial accounting is the process of recording financial transactions and preparing financial reports for external users such as investors, lenders, and regulators. Management accounting includes planning, organizing, controlling resources to achieve goals. It may include activities that are not normally considered part of financial accounting like human resource management or marketing management. Financial management is the process of recording financial transactions and preparing reports for external users like investors or regulators. Financial management includes activities like budgeting, forecasting and cash flow analysis that are not normally considered part of management accounting.  
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Priya Vishwas answered 2 years ago
Management accounting and financial accounting are two different types of accounting. Management accounting is an analytical approach to business management, which focuses on how managers can use information to make decisions. Financial accounting, on the other hand, is a compilation of information about a company's financial performance and assets. Management Accounting is a managerial approach to analyzing data in order to make decisions about how well the company is performing. On the other hand, Financial Accounting is a compilation of data about a company's financial performance and assets.