Financial Accounting and Managerial Accounting: Key Differences Every Business Owner Should Know
The life of running a business implies making decisions on a daily basis, some of them being game changers. Behind all intelligent decisions is the correct financial information. However, most business owners find it hard to know the numbers that are important and the reasons. It is where the distinction between financial accounting and managerial accounting comes in. Though both systems relate to finances, they are very different in terms of the tasks they are designed to perform and the intended audience, and the ability to use them in combination might have a great effect on profitability and growth. The following we will discuss in this article: ● The definition of financial accounting and its importance. ● The subject of interest is managerial accounting. ● The major distinctions between managerial accounting and financial accounting are: ● The combination of the t...