The link and difference between management accounting and financial accounting

Management Accounting and Financial Accounting:

1, the two have the same ultimate goal

Management Accounting and Financial Accounting*** with the purpose of serving the management of the enterprise, and its ultimate goal is to improve the management of the enterprise and to improve the economic efficiency of the enterprise. Financial accounting has the function of reflecting and controlling, the basic method of accounting is also the method of internal control; management accounting directly for the management of the enterprise.

2, the two sources of information are basically the same

Management accounting requires a lot of information from the financial accounting system, the main content of its work is the deep processing of financial accounting information and re-utilization, and therefore subject to the constraints of the quality of work of financial accounting; and the development and reform of financial accounting, to give full consideration to the requirements of management accounting to expand the exchange of information processing capacity and compatible with the ability to avoid unnecessary duplication and waste. ability to avoid unnecessary duplication and waste.

3, the two main indicators of interpenetration

Financial accounting to provide historical funds, costs, profits and other relevant indicators, is the management of accounting for long-term and short-term decision-making analysis of an important basis; and management accounting to determine the plan, but also financial accounting for the day-to-day accounting of the target. Their main indicator system and content is consistent, especially within the enterprise accounting indicator system should be synchronized in order to achieve effective control and management.

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4, the two complement each other in the method

Management accounting methods are mainly forecasting, decision-making, budgeting, control and assessment; financial accounting methods are mainly accounting, analysis and inspection. Management accounting uses the advantages of financial accounting accounting and analysis to collect and process information; financial accounting uses the advanced methods of management accounting to simplify accounting, strengthen accounting analysis and inspection, and provide accounting information.

5, the two provide information with *** with the same characteristics

Relevance and reliability is management accounting and financial accounting information *** with the same characteristics. Information is the basis for decision-making, whether it is the internal managers, or outside the enterprise investors and creditors, the information required to have the relevance and reliability.

The difference between management accounting and financial accounting

One, the focus of the work is different

Financial accounting focuses on the daily business records, registering books of accounts, regularly prepare the relevant financial statements to the outside world of the enterprise has an economic interest in the groups and individuals to report on the financial position of the enterprise and operating results, its specific objectives are mainly for the outside world of the enterprise, the financial accounting is also known as the "financial accounting", the "financial accounting" is also known as the "financial accounting". Financial accounting can also be called "external accounting".

And management accounting focuses on the specific problems encountered in the management of enterprises to analyze and research, in order to provide internal management at all levels of forecasting and decision-making and control of the assessment of the information needed, its specific objectives are mainly for the internal management of the enterprise services, management accounting can also be called "internal accounting".

Second, different levels of the main body of work

The main body of work of financial accounting is often only one level, that is, the main body of work of the entire enterprise, so as to adapt to the financial accounting is particularly emphasized in the complete reflection of the supervision of the entire economic process, and can not be omitted from the main body of the accounting of any accounting elements.

While the main body of management accounting can be divided into multiple levels, it can be the main body of the enterprise as a whole, but also can be a local area within the enterprise or individual departments or even a management link as the main body of work.