Difference between financial accounting and management accounting

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Management accounting should not be construed as the new method of accounting; however, it refers to the application of accounting skills to the various problems faced by the management in the organizational functioning.

Management accounting can be said to include the use of all accounting techniques; financial and cost and also the use in appropriate situations relating to mathematical and statistical techniques. According to this stand point, the methods and techniques usually applied include:

Analysis of cash and funds flows;
Analysis and interpretation of financial statements with the help of accounting ratios and statistical measures;
Financial planning;
Trend analysis and business forecasting;
Capital budgeting;
Marginal costing;
Budgetary control and standard costing;
Operations research;
Performance and efficiency audit and
Reporting.

Financial accounting is concerned mainly with the historical aspects of external reporting, that is, providing financial information to outside parties such as investors, creditors and governments. For the purpose of protecting those outside parties from being misled, financial accounting is governed by what are called generally accepted accounting principles (GAAP). Management accounting on the other hand is concerned primarily with providing information to internal managers who are charged with planning and controlling the operations of the firm and making a variety of management decisions. Because of its internal use, management accounting is not subject to GAAP. More specially, the difference between financial and management accounting can be explained as detailed below:

Financial accounting is related to providing data for external users like shareholders, investors, government agencies, suppliers, customers etc. Management accounting provides data for the internal users.
Financial accounting is required as per the laws in force in the respective countries, where the management accounting is not mandatory by law;
Financial accounting is governed by generally accepted accounting principles, whereas management accounting is not subject to generally accepted accounting principles;
Financial accounting generates accurate and timely data whereas management accounting highly emphasizes relevance and flexibility of data;
Financial accounting emphasizes the past and it relates to the transactions regarding to income earned by the firm and expenditure incurred by the firm. Management accounting relies more emphasis on the future;
Financial accounting looks at the business as a whole; whereas, management accounting focuses on parts as well as on the whole of a business;
Financial accounting stands primarily by itself; whereas, management accounting draws heavily from other disciplines such as finance, economics and operations research;
Financial accounting has an end in itself; whereas, management accounting is a means to an end.

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  • Degrees offered include Bachelor of Science in Accounting, Bachelor of Science in Business Administration, and Master of Business Administration.
  • Students are instructed in relevant business skills like communication, mathematics, and management.
  • Coursework emphasizes the development of project management, communication, decision-making, and problem-solving skills.
  • Flexible, 100% online and campus based programs available.

Programs:

  • BS in Accounting
  • BS in Accounting - Managerial Accountancy
  • BS in Accounting - Public Accountancy
  • And more...

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Programs:

  • Bachelor of Science in Accounting
  • Bachelor of Science in Business Administration - Finance
  • Designated as a 2015 Military Friendly® School by Victory Media, publishers of G.I. Jobs®.
  • Each program is designed to instill the knowledge, ethical values, and interpersonal skills of professional practice and to foster values of social responsibility.
  • Offers several flexible learning options, including a blended format that combines campus and online learning.
  • Several scholarship opportunities are available for students who qualify.

Programs:

  • Business Administration - Accounting (BS) (Online)
  • Business Administration - Finance (BS) (Online)

At Kaplan University, we offer over 180 degree and certificate programs. With three different ways to learn, you can choose the format that works best for you:

  • Study wherever you have an Internet connection, because almost all of our courses are 100% online, or
  • Take campus-based classes(with day and evening options available), or
  • Combine campus learning with online classes (blended).

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  • Bachelor of Science: Accounting
  • Bachelor of Science in Accounting : Public Accountancy
  • Bachelor of Science in Accounting : Managerial Accountancy
  • And more...
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The Secret to Getting Ahead is Getting Started

Congratulations! Your interest in Independence University is an important first step toward changing your life. A career-focused degree is the key to a new career with a potentially higher income, better benefits, and more satisfaction.

We want to help you get that degree. Consider:

1.       Start Fast, Finish Fast: You can earn an Associate’s degree in 20 months, and a Bachelor’s degree in 30 to 36 months.*

2.       Save up to $5,000 on your college degree.† You can afford college with our new Fresh Start Scholarships!

3.       Tuition Assistance: Financial aid and grants are available to those who qualify.

Programs:

  • Accounting (BS)
  • Accounting - Forensic Accounting (BS)
  • Business Management & Accounting (AAS)
  • Earn your degree online from Ashford University!
  • Choose from Undergraduate and Graduate classes
  • Business, Health Care, Psychology and Liberal Arts programs to choose from
  • Apply Now! Classes begin every Tuesday!

Programs:

  • BA Finance

Making the decision to earn your degree and pursue your career goals could be the best decision you ever make. Enroll at ECPI University and you’ll join a collaborative and fostering learning environment, surrounded by faculty and staff who are there to support you through the entire process.


What sets ECPI University apart? Just ask the employers who hire our graduates. Since 1966, more than 3,800 employers have looked to ECPI for talented professionals who are capable of entering the workplace and doing the job right on the very first day. That’s because our curriculum is designed to meet the needs of today’s highly-specialized job market.

 

What Are You Waiting For?

Programs:

  • Accounting - Bachelor's
Locations:  Newport News
  • Online and ground-based program areas include Fashion Marketing and Management and more.
  • Students can study branding, event management, and public relations to help them prepare for a marketing career
  • Course topics include Fundamentals of Business, Brand Strategy, Project Management, and Principles of Market Research
  • Over 50 locations nationwide, with a student support team dedicated to helping students grow
  • Join our next Open House on 10/21 (10/28 @ select locations)!

Programs:

  • Marketing & Entertainment Management (BS)
  • Fashion & Retail Marketing (AS)
  • Online Bachelor's programs include BBA, Criminal Justice, Psychology, IT, Healthcare Management & Public Health
  • Over 115 years of delivering quality education and personalized attention to students
  • Provide a range of campus experiences and services online including advising, tutoring, student community, and career services
  • Give students and alumni access to career assistants who help with resumes, cover letters, job hunting, and more.

Programs:

  • Business Administration (BBA)