Managerial Accounting College Accounting 1B Warren / Reeve / Duchac 10th edition Homework help, answers, solutions, quizzes, and tests. Difference Between Financial and Managerial Accounting Financial accounting reports are prepared for the use of external parties such as government bodies, shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization.

Definition:
Management Accounting (Managerial Accounting) is the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities.(CIMA Official Terminology).