Financial Accounting And Managerial Accounting

1613 Words Aug 17th, 2014 7 Pages
Introduction: Both financial accounting and managerial accounting provide important information about the business process. On the one hand, financial accounting provides only financial information to its internal users and external users. On the other hand, managerial accounting basically communicates about financial and non-financial information with internal users such as managers, employees and owners of the company. In other words, managerial accounting provides information to managers who direct and control its operations. In detail we can say that managerial accounting is the process of identifying, analyzing, recording and presenting financial information which is used for planning, controlling and decision making process by the manager. It helps managers and internal users to understand how much their products cost, how their companies increase sales, and how to make profits and growth of the company. As a manager, he or she must understand the terms use in managerial accounting to use these information provided above. The main purpose of managerial accounting is providing useful information to decision makers such as managers and directors. It provides information by collecting, managing, and reporting information in demand by their users. Managerial accounting, is primarily dealing with collecting data from internal and external sources, analyzing, processing, interpretation and communication of information obtained for use by the organization so that the…
Open Document