Summary: Financial accounting reports are prepared for the use of external parties such as shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization.

Cost accounting and financial accounting have similar functions and they provide information and therefore, both branches of accounting are related to each other to a very large extent:

Explore the differences between the two, and get a brief understanding of the two.

Financial accountancy is a domain of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders.

How to pursue a career as a Financial Accountant