Financial accounting reports are geared up for the use of outside of the organization such as shareholders and creditors, while managerial accounting reports are prepared for supervisors within the business.
Managerial accounting has a concentrated forthcoming bearings. In compare to, financial accounting which mainly delivers synopses of past financial business deals.
According to Sana Ahmed; financial accounting is mandatory; that is, it must be done. Various outside parties such as Securities and Exchange Commission (SEC) and the tax authorities require periodic financial statements. Managerial accounting on the other hand is not mandatory.