—August 20, 2016—
As you begin your ACG 2071 class, it is important to know the difference between Financial and Managerial Accounting.
In a nutshell: Financial Accounting deals with the preparation of historic data (the previous financial year) to compile various company financial statements (Balance Sheet, Income Statement, etc.). In contrast, Managerial Accounting looks to the future. Managerial Accounting is analyzing what the company is doing and presenting the findings to management (internal use) to determine how to run the company more efficiently.
The image below summarizes this in a bit more detail:
Photo Credit – Anu Singh, Student