Compare accounting and financial management.

The major differences between accounting and financial management are as follows −

AccountingFinancial management
  • It is a process of identifying, recording, measuring, classifying, verifying, summarising, interpreting and communicating financial information.

  • Primarily used by both internal and external users.

  • It reports financial related information within specific rules and principles.

  • Accrual basis of fund.

  • Prepared quarterly, half-yearly and yearly.

  • Mainly focus on past activities.

  • Financial accounting and management accounting are types.

  • Main objective is to report about financial wealth of a firm.

  • Prepares financial statements.

  • It is a general managerial application used in the area of finance for decision making.

  • Primarily used by company management and shareholders.

  • Informs about assets and resources of a company and their utilization.

  • Cash flow basis

  • Can do whenever it is necessary.

  • Mainly focus on future activities

  • Involves financial planning, financial control and decision making.

  • Main objective is to create wealth, generate cash, earn good returns, effective use of assets.

  • Analyses financial statements.

Updated on: 24-Jul-2020


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