The key differences between financial and managerial accounting lies in the fact that they are two different aspects of an enterprise, one is specific in sense and other encompasses larger areas. Managerial accounting identifies, measures, accumulates, analyses, prepares, interprets and communicates the different information for planning, evaluating and controlling and assures relevant use of the resources. On the other hand, financial accounting is performed on principles and standards to present an accurate report of the substantial productiveness of the business and submit the genuine profit margin to the governmental tax collectors.

Management accounting also takes into consideration the financial reports of creditors, shareholders, tax authorities and regulatory agencies. The management accounting also has its hand in customer relationship management. The reports produced by the management accounting are used by both the managers and the employees. Financial accounting has a record of the overall performance that the organization has achieved over the definite period of time. As per law, the financial accounting is related to money or the other kind of revenue.

While management accounting also works in set patterns and standards basically for taking decisions on alternatives of the corporate but financial accounting provides information to be used by both the organization and the parties who are outsiders to the organization. They may be shareholders, creditors, bank or other bodies.

The financial accounts are basically of monetary nature. The accounting done will carry all reporting on the expenditure, profit, sales, purchasing, project expenses and alike. Management accounting helps record, control and plan the different activities of the association. Financial accounting has small parameters of control but the management accounting widely takes into account the varied areas.