Managerial accounting - Financial definition
Concise definition of the term managerial accounting
The term managerial accounting describes the process of identifying, measuring, interpreting, and providing financial information and resources to management in order to assist them in planning, decision-making, and risk management.
Comprehensive definition of the term managerial accounting
The main difference between financial accounting and managerial accounting is the target audience. While managerial accounting analyses and results are kept in-house for business leaders to use to drive decision-making and run the company more effectively, financial accounting focuses on creating and evaluating financial statements that will be reported to external entities, like potential investors, lenders and creditors.