Financial vs Managerial Accounting

 

➔   Managerial accounting deals mainly with predicting and preparing for the future of the business whilst taking into consideration the external and internal factors that could affect the business. It uses the business’s past to make decisions about its future, for example in budgeting. Managerial accounting is mainly used internally by management to plan and make decisions. 

➔   Financial accounting involves the recording of transactions and preparing the financial statements and analysis thereof. Financial accounting is mainly used for external purposes i.e. the information in financial accounting is used by external parties who may want to invest or the shareholders. 

References

  • Anon., 2007. The Answer series: Grade 11 Accounting. 2007 ed. Cape Town: The Answer.

  • Anon., 2019. Investopedia. [Online]. Available at: https://www.investopedia.com/ [Accessed 3 October 2019].

  • Doctor, K., 2015. FLIPHTML5. [Online]. Available at: http://fliphtml5.com/fkul/mgtf/basic [Accessed 1 October 2019].

  • T Hall, D. W. P. S. A. A. P. G. P. F., 2017. Accounting Study Guide. 2016 ed. Musgrave: New Generation Publishers .

Neha Pillay (2019)

Grade 10Keroshan PillayComment