Financial Accounting vs. Managerial Accounting

Financial Accounting vs. Managerial Accounting
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Financial Accounting vs. Managerial Accounting
Financial accounting and managerial accounting are both critical business processes. On its part, financial accounting is used to denote the accounting and financial statements that are offered to external users. These external users are people such as investors, financial institutions and healthcare regulators. Within the healthcare organization, financial accounting helps in presenting a clear image of the monetary position of the organization. Financial accounting involves mostly bringing in outside auditors to examine the company records in order to present an accurate image of the organization. In the healthcare organization where I work, we receive a lot of donor money which we have to account for at the end of each financial year. At the end of each financial year, we bring in an external auditor to review how the money was spent and then a report is sent to the donors. This is the essence of financial accounting.
On its part, manag...