What is contrary to the traditional concept of financial accounting?

Contrary to the traditional concept of financial accounting, management accounting exists.

Management accounting, also known as "internal reporting accounting", is a branch of accounting that processes, arranges and reports the information provided by financial accounting and other information through a series of special methods, so that managers at all levels of enterprises can plan and control their daily economic activities and help decision makers make various special decisions.

Management accounting plays an increasingly important role in enterprise financial management activities. In the core concept of management accounting, the creation and maintenance of value are the two most important points. Based on this, management accounting is the most effective tool to integrate enterprise strategy, business and finance.

Extended data:

The role of financial accounting

First of all, financial accounting helps to provide useful information for decision-making, improve enterprise transparency and standardize enterprise behavior.

On enterprise financial accounting from the perspective of reflection function. Providing information about the financial status, operating results and cash flow of an enterprise is the basis for decision-making by all parties, including investors and creditors.

Second, financial accounting helps enterprises to strengthen management, improve economic benefits and promote the sustainable development of enterprises;

The management level of an enterprise directly affects its economic benefits, operating results, competitiveness and development prospects, and determines its future and destiny to a certain extent.

Third, financial accounting helps to assess the performance of economic responsibility of enterprise management.

When accepting investment from all investors and creditors, including the state, enterprises have the responsibility to make rational use of resources, strengthen management, improve economic efficiency and accept assessment and evaluation according to their predetermined development goals and requirements.

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