加拿大会计论文代写： Comparison Of Financial And Management Accounting
Management accounting focuses on the future, while financial accounting describes the past.
External financial statements based on historical cost basis, and reflects what happened in the past. The information provided in this report is required to be true and fair, and only accurate and reliable financial information can obtain the confidence of external stakeholders.
Management accounting is required to predict the future and provide a variety of forecast information. At the same time, management accounting uses a more extensive concept of cost in decision-making analysis. Sometimes information is provided on the basis of estimates, to predict the future and make decisions on the basis of future, of course, this information can not be very precise, but the management accounting attaches great importance to the timeliness and effectiveness of information, and only to provide timely and effective information can they enable managers to seize the opportunity to make decisions. The company’s success depends largely on the timely and correct decision-making.
Financial Accounting has accounting period, while the management accounting has no
Financial accounting is a past-oriented, the financial statements is based on the record books and is prepared for a certain period, such as annual, quarterly or monthly . The financial statement is a summary of the financial position and operating results within a certain period.
Management Accounting is future-oriented, and can prepared a variety of reports according to the needs of management, from practice, there is no monthly, quarterly, annual limits, as long as management needs, it can be by the hour, the day basis, it can be prepared on the basis of a period in the past, yet can also be a period in future.
Financial accounting is overall, management accounting is the balance between overall and local
Financial accounting reports provided information on the summary of enterprise. This report deals with the entire enterprise as a whole, the financial accounting reports generally do not involve localized issues of internal departments, and units.
Management accounting provided detailed information in the report, this report not only reflects the overall situation of the enterprises, but also that of the local businesses, such as ministries, offices and other circumstances.
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Similarities between financial and management accounting
Financial accounting focuses on external services, but internal services is also included. Information which financial accounting provided on the funding, costs, profits and other information is very important for business management. In particular, financial statements can comprehensive and reflect all aspects of enterprise’s financial position and operating results. Study of the financial statements can grasp the overall situation of the enterprises, managers must first be aware of the overall situation, so that guide enterprises to continuously move forward. Therefore, managers must pay close attention, and be very concerned about the information provided by financial accounting. At the basic of the analysis of financial accounting, the plan could be developed to enhance control and make a scientific decision, how to further improve management and increase economic efficiency could also be studied. So we can not say financial accounting is just the external services, not domestic service, we can only say that the financial accounting focuses on external services.
Management accounting focuses on internal services, but it also contains external services. Investors and creditors concern about the enterprise’s financial position and operating results. In order to improve the enterprise’s financial position and operating results, precondition can only be based on strengthening internal management and improving the work quality and effectiveness at the aspects of production and management. In this regard, management accounting contributes a lot to correct business decision and timely provision of useful information. At the same time, investors and creditors in their decision-making also need to know a number of economic information provided by management accounting, which have important reference value when they make the right judgments and policy decisions.
Management accounting must obtain a variety of information from the different channels for planning and control of production and business activities, such as financial information, statistics, business accounting information and other relevant information. The most basic of which is financial information. For financial accounting has a fixed set of procedures and methods. Information will formed according to some time production and business activities and their results through the registration books, weaving statements, etc., which is not only for external use, but also for internal use. Management accounting can be developed based on financial information, making management accounting information to facilitate the regulation, control and decision making.
Functions of accounting are accounting and supervision. Management accounting and financial accounting have agreed to be subordinated to the general requirements of a modern enterprise accounting, which means the users of accounting information provide relevant information, to achieve enterprise internal objectives and meet the requirements outside the enterprise. So the ultimate goal of financial accounting and management accounting are the same.
Both of financial accounting and management accounting are faced with self-improvement and development. They have to confront the reality of a common problem: how to use modern computer technology to collect, process, store, transmit and report the accounting information; at the same time, they need to handle the demands of modern management properly according to the organization and implementation of accounting management .
Application of financial and management accounting
Main function of management accounting in the enterprise is to establish a variety of internal accounting control system and provide internal management needs of a variety of data and information at the aim of improving operational efficiency and effectiveness.
The main carrier of corporate financial accounting is the financial statements, which can reflect their overall financial condition, results of operations and financial condition changes. Financial statements is the main contents of financial reports, which provide financial information-based economic information to interest groups outside the enterprise, and also reflect the interest relationship among the businesses and investors, creditors and other parties. Users often have to use the financial reports as the main basis to make the economic decisions. Information providers of financial reporting are separate with the Information users of financial reporting. In order to obtain trust, it is necessary to specific ate the formation strictly during information processing, and transmission of the whole process. Accounting principles, accounting standards, the accounting system and other forms of financial accounting standards have come to the world.