Answer
Financial Accounting deals with the finances of an operation. In financial accounting reports are generated to stakeholders of the business, creditors and regulating authorities. Managerial accounting is concerned with the information managers need to know for planning, controlling and decision making. In a nutshell financial accounting provides needed information for those outside the organization; whereas managerial accounting provides the information that is used inside the organization.
Work Step by Step
Financial accounting consists of the mandatory reports per GAAP and IFRS. Managerial accounting is not mandatory.
