Order for this Paper or Similar Assignment Writing Help

Fill a form in 3 easy steps - less than 5 mins.

Posted: November 6th, 2022

Financial and managerial accounting

Compare and contrast financial and managerial accounting. Provide one specific, real-life example of how either financial accounting helps external stakeholders make informed decisions or how managerial accounting helps managers to improve operational and financial performance.

Financial and Mangerial Accounting
By (Student’s Name)

Course Name
Professor Name
Name of the Institution
Physical Location

Financial Accounting and Managerial Accounting
Financial accounting is the integration and aggregation of accounting data into financial statements of a particular firm or business entity. Managerial accounting on the other hand involves reporting on the internal process and business transactions of a company. Most companies prepare financial and managerial reports which are a source of information to its stakeholders. The aim of this analysis is to compare and contrast between financial and managerial accounting.
To begin with, both financial accounting and managerial accounting are used for planning and forecasting in firms. Financial accounting through the use of financial ratios and financial reports can plan for future accounting periods. Managerial accounting reports are used to forecast costs and revenues as well as budget for future health of the firm. Thus, both financial accounting and managerial accounting information can aid the company to plan for the future (Kim, M. and Schmidgall, 2019, pg.379).
On the contrary, financial accounting is reports mainly on profitability whereas managerial accounting reports on optimisation reports in the firm. Financial accounting helps to determine the profitability of the firm which is directly aimed at increasing share value and performance. Managerial accounting involves setting strategies that will improve operational efficiency of the firm. Also, financial accounting requires presentation of financial reports at the end of every accounting period whereas managerial reporting has no fixed reporting period. All financial statements need to be presented at the end of the financial year of the company which means its reports are constrained to accounting information during the accounting year. Managerial reports provide information periodically for example monthly, yearly, quarterly, and five year to report on how the firm is expected to perform (Hlaciuc et al., 2017, pg.103). Managerial accounting entails developing strategies to improve the firm’s operational efficiency. Furthermore, financial accounting requires financial reports to be presented at the end of each accounting period, whereas managerial reporting has no fixed reporting period. All financial statements must be presented at the end of the company’s fiscal year, which means that its reports are limited to accounting information during the fiscal year. Managerial reports provide information on how the firm is expected to perform on a regular basis, such as monthly, yearly, quarterly, and every five years (Hlaciuc et al., 2017, pg.103).
Moreover, financial accounting is controlled by standards of reporting whereas managerial accounting is not regulated by financial standards. Accounting information is reported and recorded based on the International Financial Reporting Standards (IFRSs) and specific Generally Accepted Accounting Principles (GAAPS) of a specific country (Richardson, 2017, pg.246). Managerial accounting has no standards as reports are prepared for internal control and consumption by the firm.
Example of Managerial Accountants Role
The Toyota Group introduced Just In Time Management System (JIT). The JIT system was used to save costs and production time as an order is processed only when placed by a customer. This has led to improved operational efficiency and minimal minimal of resources in the company (Pinto et al., 2018, pg.25).
Hlaciuc, E., Vultur, P., Cretu, F. and Ailoaiei, R., 2017. The interface between financial and management accounting. The USV Annals of Economics and Public Administration, 17(2 (26)), pp.103-110.
Kim, M. and Schmidgall, R.S., 2019. Key managerial and financial accounting skills for private club managers: Comparison to lodging managers. International Journal of Hospitality & Tourism Administration, 20(4), pp.379-399.
Pinto, J.L.Q., Matias, J.C.O., Pimentel, C., Azevedo, S.G. and Govindan, K., 2018. Just in Time. In Just in Time Factory (pp. 25-38). Springer, Cham.
Richardson, A.J., 2017. The relationship between management and financial accounting as professions and technologies of practice. In The Role of the Management Accountant (pp. 246-261). Routledge.

Homework Help For You!

Special Offer! Get 20-30% Off on Every Order!

Why choose us?

Every student wants the best grades and that’s our Focus

Top Essay Writers

We carefully choose the most exceptional writers to become part of our team, each with specialized knowledge in particular subject areas and a background in academic research writing.

Affordable Prices

Our service prioritizes recruiting the most talented writers at an affordable cost. We facilitate the lowest possible pricing without compromising the quality of our services. Our costs are student friendly and competitive in comparison to other writing services in the industry.

100% Plagiarism-Free

The service guarantees that our final work is 100% original and plagiarism-free, ensuring this through a thorough scan of every draft copy using advanced plagiarism detection software before releasing it to be delivered to our valued customers.

How it works

When you decide to place an order with Nursing Assignment Answers, here is what happens:

Complete the Order Form

You will complete our order form, filling in all of the fields and giving us as much detail as possible.

Assignment of Writer

We analyze your order and match it with a writer who has the unique qualifications to complete it, and he begins from scratch.

Order in Production and Delivered

You and,the support and your writer communicate directly during the process, and, once you receive the final draft, you either approve it or ask for revisions.

Giving us Feedback (and other options)

We want to know how your experience went. You can read other clients’ testimonials too. And among many options, you can choose a favorite writer.