Resemblances and Differences between Financial Accounting and Management Accounting

In order to achieve the objectives set by the economic organization, there are required both knowledge and observation of the patrimony situation and of the global financial result, as a synthesis of one's own activity and the external relationships with other patrimonial units and with different public institutions, as well as knowledge, control and analysis of internal activities, of exploitation activities, in consequence of the various operations of movement and transformation that the patrimonial elements are subject to inside the respective unit. Corresponding to these two components of economical and financial activity of the company, two categories of concerns appeared and developed in accounting as well: Financial Accounting and Management (Managerial) Accounting. Virtually, there are not two types of accounting, but two forms of application of the same technique that propose to provide different information (financial accounting - for external users, management accounting - for internal users).