Financial Management

Financial & Management Accounting

• Info prepared for external users - people outside the organisation.
• General purpose reports concerning the company as a whole are prepared.
• Detail? - Broad overview of the performance of the business for a specific period.
• Must be specific format as laid down by the law and accounting profession.
• Reports need to be prepared at least once a year.
• Contain info concerning past performance.
• Info type? - Info that can be quantified in monetary terms.
• Info prepared for internal users - people within the organisation.
• Specific reports concerning a specific department or unit are prepared.
• Detail? - Considerable detail in order for managers to make operational decisions.
• Reports are tailored to meet the needs of specific managers. Not governed by law.
• Reports are prepared as the need arises - when required by management.
• Contain info concerning the future performance.
• Info type? - Financial and non-financial info, e.g. physical qty of stock.