Managerial AccountinG Assignment Example | Topics and Well Written Essays - 250 words

Managerial AccountinG - Assignment Example As an accountant I do not need to take action myself and confront my friend, thus I will leave it to the management to deal with its employee and resolve the issue. However, as loyalty note on my part I will disclose all the information to the higher management even thou this is done by my dear friend because it is all about being ethical in the business. Managerial versus Financial Accounting My friend who is nowadays interested in finance and accounting came to me to understand the difference between financial and managerial accounting. I started off by giving out the definitions to my friend. Managerial accounting, also known as cost accounting, deals with the internal reporting in an organization. It involves reports on daily or weekly basis that helps managers to make financial decisions. It is the identifying, interpreting and then exhibiting information to the managers. There is no legal binding for producing internal reports but firms do this in order to show a numeric pictur e of goals and objectives. â€Å"The focus of managerial accounting is on the needs of managers within the organization.† (Hilton et al 2008) These reports are a futuristic look and include budgets and forecasting analysis. On the other hand, financial accounting is the collection of financial data to formulate financial statements.