Financial Analysis and Decision-Making
This module covers the relationship between accounting, financial management, and decision-making in a business. It focuses on how financial information is used for internal management, financial planning, and strategic decision-making.
Accounting Management involves using financial data for internal decision-making. It helps businesses plan, control, and evaluate financial activities.Finance is the broader discipline that manages a company’s money, investments, and risks to achieve its goals.
Key Differences Between Financial and Managerial Accounting
| Feature | Financial Accounting | Managerial Accounting |
|---|---|---|
| Users | External stakeholders (investors, regulators, banks) | Internal management (executives, department heads) |
| Purpose | Report financial position | Help in decision-making |
| Reports | Standardized financial statements | Internal reports like budgets and forecasts |
| Frequency | Periodic (quarterly/yearly) | Continuous (daily/weekly/monthly) |
| Regulations | Follows GAAP/IFRS | No strict rules, tailored to business needs |
