Download file to see previous pages...
While management accounting is largely implemented for individuals working within the organization, financial accounting generally functions for external entities. In terms of financial accounting there are a number of specific considerations. Although law does not require management accounting, financial accounting is a necessity for organizations. The requirements for corporations to keep financial accounting records is a large consideration, as recent Dodd-Frank regulation has necessitated that expensive accounting measures be kept to ensure that accurate records are established. Within this spectrum of understanding financial accounting is further distinguished, as it requires an external review by a certified public accountant (CPA). It follows that external stakeholders use financial accounting. Generally these external stakeholders implement financial accounting reports as a means of making investment decisions, as the financials of a company are the primary determinant of equity value.
In addition to management accounting being for individuals within the organization and financial accounting being for external stakeholders, there are a number of further differentiating factors between these forms of accounting. While financial accounting necessarily involves the entire organization, oftentimes management accounting is implemented for significant sectors of the business or corporation. This division is such that it creates significant structural divisions between these forms of accounting. While the structure of financial accounting is regulated by the Internal Revenue Service and accounting regulations, managerial accounting is contingent only on the strategic initiatives within the organization. For instance, management accounting records may occur on a daily, weekly, or monthly basis. Additionally, management accounting oftentimes has a strategic angle, as it allows internal officers examine the
...Download file to see next pagesRead More
Cite this document
(“What's the difference between Financial Accounting and Management Essay”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1595580-whats-the-difference-between-financial-accounting-and-management-accounting
(What'S the Difference Between Financial Accounting and Management Essay)
“What'S the Difference Between Financial Accounting and Management Essay”, n.d. https://studentshare.org/finance-accounting/1595580-whats-the-difference-between-financial-accounting-and-management-accounting.
Its headquarters are in South Wales but, it is growing nationally with Jeff (owner) as the sales and marketing personnel and Evans (employee) as the financial manager. The company is expanding further to form newer departments in the organizational structure like HR, Customer Service etc
In this paper, I seek to discuss aspects of financial management and accounting in a healthcare organization’s setup – nursing home. Identification of the Type of Organization – Nursing Home A nursing home refers to a set of “facilities with three or more beds that routinely provide nursing care services” (Evashwick, 2005, p.
The wide range of institutions included in this particular health care organization means that there are diverse sources of funding. But, nonetheless, the entire organization is privately funded and operates within a conventional framework of raising revenues.
The expert accounting conception and scientific accounting dexterity regarding measurement of performance, analysis, auditing and final reporting are as well pertinent to the supervision of healthy and sustainable ecological performance. With the increased international community's recognition of the ecological concerns, so has there been a simultaneously increased demand on accountants to provide comprehensive ecological costs and information on performance.
To support such changes, companies have altered their management accounting practices to adapt to the ever changing environment. There is sufficient research done by the authors discussed in this work, to support such a statement.
This aspect of accounting concerns itself with learning about the effect an organisation has on society and about its relationships with an entire range of stakeholders to whom it is accountable. These would include all those groups who affect and/or are affected by the organisation and its activities.
Financial accounting deals with financial information to the people outside the organization, whereas managerial accounting prepares financial accounts for the people inside it (Differences Among Accounting, Finance, and Economics 2006). Finance, on the other hand, is the discipline dealing with the allocation, management and usage of "monetary resources over time" (Finance 2006).
Management Accounting is also useful for preparing the accounts for the non management group such as shareholders, tax authorities and regulatory agencies. This also includes of preparing the Formulation of plans and budgets which will be converted into financial accounts.
hat it serves as a powerful tool for decision making of operational, strategic, performance, forecasting, measurement as well as other factors that together represent the composition of a business. The coaxial relationship of the opposite ends of the accounting practice is