Difference between financial accounting and financial management
Financial accounting
primarily related to reporting of financial result and record keeping, where
the financial management relates to financial decision making i.e. investment
decision , dividend decision etc. the difference between financial and
financial management has been further elaborated below;
1. Historical VS Future Cost
Financial reporting
primarily deals in historical cost, where financial management takes into
accounts future cost.
2. Reporting Financial result VS Decision
Making
Financial accounting
primarily provides information about the financial performance and financial
position of the organization, where financial management accounting provides
management information for financial decisions.
3. Compliance requirement
Financial accounting
reports are prepared in accordance with universally accepted rules and
regulation i.e. international accounting standard, where financial management
account or report is prepared as per requirement of management.
