Difference between Financial Accounting and Management Accounting

Differences between financial accounting and management accounting 

Garrison and Noreen (2013) have been mentioned some key differences about financial accounting and management accounting. Some are discussed below:

Financial accounting	Management accounting
It is prepared for outside users of the organisation such as owners, tax authorities, creditors, government regulatory body.	It is prepared for internal users of the organisation such as management, employees and other related parties.
Financial accounting helps outside users for decision making regarding the firm.	Management accounting helps management in decision making, planning, controlling, motivating, and performance evaluation.
It focuses on the past financial resultant.	It focuses on future decision making.
It concentrates on verifiability and objectivity.	It concentrates on relevance.
Financial statements must be prepared by the guideline of GAAP.	It is not mandatory of following GAAP in preparing management accounts.
External reporting is mandatory.	External reporting is not mandatory.

Reference

Garrison, R. and Noreen, E. (2013) Managerial Accounting. 11th Edition. New York: McGraw-Hill Education Pvt. Ltd.