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.