The Role of Financial Managerial Accounting Function

Accounting is a major part of an organization or business, it help to provided information needed to manage and make economic finis in order to move the political party or organization forward. monetary and managerial invoice work together with emphasis on the future tense of the smart set, but have different proposes that helps to enhance the organization both slipway as in internal and external. The main purpose of fiscal accountancy is to provide an external performance of the comp all or organization skill to their stockholder, lenders, pecuniary analysts, and creditors, tax authorities by prepare financial line.However, it too reports past and present transactions on the balance sheet and the go withs income and cash flow statement. Managerial news report is use to boil down on providing information within the fraternity or organization, of which includes planning and reservation close for the company, its a managers job, he/she must have proficiency in the ma nagerial accounting because it is the foundation of the companys future, and the managers aim is to control the companys operation by improving the way internal reports and external financial statement will be used in purpose making within the company.In addition, Managerial accounting deal with topics much(prenominal) as cost behavior, profit planning, operational budgeting are all financial decision to be made to form the external financial statements and its the managers of the managerial accounting department responsibility to have them done. To compare the two accounting organisation I would have to say they have similar function, they both produce reports one for external and one for internal that is use for making decision for the company.The managerial accounting deal with confidential financial reports that is used by the CEOs within the organization or company, these reports are lie in of sales forecasting, the companys budgets analysis and comparative analysis and any type of merge or consolidation reports the company did in a day, weeks or months. In addition, these reports is generated on a beatly basic such as weekly or monthly it is more flexible than financial reports, and it does not focus on general accepted accounting principles (GAAP). however it is use by the CEO to fore see the future of where the company is going. The financial accounting is more concern with the external aspect of the company, so when generating the reports for their stockholders, lenders, financial analysts, and others outside of the company they follow out the general accepted accounting principles (GAAP).In addition financial account reports or focus on the past in a more historical factor of the intravenous feeding financial statement of which include a balance sheet, income statement, owners equity statement and cash flows statement, the report are generated for a set period of time such as a fiscal year to give the company a history for the hold years. In c onclusion financial and managerial accounting can be said that they play a genuinely important part in business making decision, if the rules are apply in the correct and ethical manner by the CEOs and mangers .