Education and Career Forum

Difference between Financial Accounting and Management Accounting? Which course is more preferrable?

Difference between Financial Accounting and Management Accounting

Aggregation. Financial accounting reports on the results of an entire business. Managerial accounting almost always reports at a more detailed level, such as profits by product, product line, customer, and geographic region.

Efficiency. Financial accounting reports on the profitability (and therefore the efficiency) of a business, whereas managerial accounting reports on specifically what is causing problems and how to fix them.

Proven information. Financial accounting requires that records be kept with considerable precision, which is needed to prove that the financial statements are correct. Managerial accounting frequently deals with estimates, rather than proven and verifiable facts.

Financial Accounting deals with the Accounting of the Finances of a Company while Management Accounting deals with Accounting the Management Part of a Company.
This is the difference between the two courses.
Financial Accounting is more preferable as the chances and the scope of getting a job is more in case of Financial Accounting.
Management Accounting is a good score but the scope of jobs of Management Accounting is less than that of Financial Accounting.