Difference between Financial and Management Accounting


Financial accounting is concerned with the making of financial statements for banks, government agencies, stockholders etc. Management accounting deals with the use and necessity of accounting information by managers within companies. There are many institutions in India and abroad which offers courses in both Financial Accounting and Management Accounting. The differences between the two streams are given below.

Financial Accounting Course and Opportunities

Candidates who wish to join the course in Financial Accounting must have completed their 12th with a minimum of 55% from a recognized college. They must have studied mathematics as a subject. Candidates who belong to the backward categories should obtain at least 45% marks. Many institutes in India offer courses in Financial Management. Candidates who have completed their course can find employment in banks. They can also work in foreign trade agencies and at the same time work as financial analysts, wealth managers and portfolio managers etc.

Management Accounting Course and Opportunities

Candidates who would like to join the Management Accounting course should have completed their 10+2 class from a recognized college. They should have studied Mathematics as a subject. The candidates must have secured a minimum of 50 percent marks in the qualifying examination (45% marks for the ST/SC/OBC categories). Those candidates who have successfully completed their course can find jobs as an Accountant, Investment Advisor, Payroll Executive etc in addition to posts like Audit assistant, VAT consultant, MIS executive etc.

Key Differentiators

Financial accounting is based on GAAP while managerial accounting is about the study of corporate finances and financial resources. Management Accounting is a discipline of Accounting. It is concerned with the confidential financial information that is used solely by the top management within a company whilst financial accounting is employed by individuals outside a company or establishment. Financial accounting focuses upon the production of financial reports which also includes the fundamental reporting requirements of stability, solvency, profitability etc.



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