Management Accounting v Financial Accounting (1 Viewer)

[blue_chameleon]

Not sure if this question has already been raised, apologies if it has.

I have been unable to grasp for a while now the specific differences between management and financial accounting. I know its probably easy to understand, but I just cant work out what majoring in one over the other will result in come graduation?

Does anybody here major in Management Accounting, and if so, can you outline why you chose it over financial?

 

[disorient]

Financial accounting deals with producing reports for external users.... its concerned with the portrayal of the entity to external users be it clients, customers, potential investors, the Government, etc...

Management accounting deals with minimising the costs of the entity whilst achieving as many entity objectives as possible...basically finding ways and strategies to help the company get more bang for its buck!

im majoring in both cos ive got the time to but personally i like MA better cos i find it easier to follow...it just sinks in my head easier lol for sum reason as opposed to FA ...but each to their own ...

i think MA is more numerical and less theory than FA ...

 

[redruM]

I prefer Management Accounting of Financial Accounting because to me its more realistic/real world like. Well in terms of studing it anyway...and its more fun than consolidation, etc!

 

[turtleface]

Management Accounting is perceived to be more value adding for the company, as ooposed to financial accounting which is valueless (besides indirectly, through lowering cost of capital etc.)

More Accountants make Finance Director and CFO nowadays through a Management Accounting background rather than a Financial Accounting background.

Having said that, most Financial Controllers are usually in charge of both Financial Accounting and Management Accounting.