There are two types of accounting, financial accounting and management accounting. Both accounting approaches serve different purposes and support different individuals or groups within an organization. This article discusses the two different types.
Managerial accountants are an important part of any profitable organization. They record, collect, prepare, and analyze financial information managers can use to make financial decisions. Managerial accountants, also called management accountants, work internally for companies. Unlike financial accountants, they don’t provide financial information for outside parties such as tax agencies, creditors, shareholders, or regulatory bodies.