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Financial Accounting |
Management Accounting |
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Purpose |
Provide information related to financial situation and busines performance for both internal and external users |
Provide information for internal management and direction |
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Information Receiver (users) |
Internal users and external users such as investors, tax authorities, finance agencies, banks, statistical agencies |
Internalusers (Ex: Board of Managements, Board of Directors,..) |
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Reporting basis |
Reports are based on accounting standards and regulations. Accordingly,reports of different companies can be compared with each other, andpublic users will able on the same page when reading reports. |
Reports are based on the internal policies of each enterprise, thus the reports of differententerprises are hardly comparable. |
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About the accounting books |
Compliant with guidance of regulations |
Compliant with guidance of enterprises |
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Information characteristics |
Based on past transactions |
Not only based on past transactions, but also on future transactions whichare not alwaysavailable. |
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Reporting templates |
Balance Sheet, Income Statement, Cash Flow Statement, Notes to Financial Statements |
Templates are designed basing on management requests. Reportscan be designed for each department, and each stage of processes. Ex: reports on production costs, reports on debts, reports on import-export of inventories ... |
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Reporting period |
Quarterly and annually |
Annually,Quarterly, Monthly, Weekly, Daily |