It is not wrong to
say bookkeeping and financing are two professions that date back to the initial
human civilization where farmers and shepherds needed to count their livestock
and crops. No matter which methods they adopted during that time but with the
development marked by the beginning of an industry of professionals, new
methods were also evolved. Finance, accountancy and bookkeeping were developed
as special educational fields in which bachelor and master degrees are offered.
Accountancy is a not just a subject but a vast field
without which, no business or organization can function properly. An accountant
is needed to handle finance and accountancy related matters. There are two major
forms of accounting i.e. Managerial Accounting and Financial Accounting. Both
types of accounting fields play a major role in running both small and large
businesses smoothly. Accountancy is a secure job but before considering
accountancy as a career, make sure you have acquired proper background
education to proceed as a managerial accountant or as a financial accountant.
It is not necessary that you must get an accountancy
degree to take job as an accountant but professional accounting courses can also help you attaining prestigious post in
any company or organization. Let’s discover what are the basic differences
between both accounting forms.
Managerial
Accounting
Managerial Accounting is known as Management Accounting
as well. It is used within businesses and concerned with the growth and
development of business only. You can also consider it an internal form of
accounting. Managerial Accountant remains concerned with the business financial
transactions, costs and revenues with regard to external parties like
shareholders, lenders and investors. A managerial accountant works closely with
high authorities within company in terms of making decisions, planning and
implementing business
strategies.
Financial
Accounting
In contrast to managerial accounting, financial
accounting has wider scope. More than planning and implementing business
strategies, financial accountancy is about creating and sharing business
financial information within company and outside for interested parties like
researchers, stakeholders, banks and taxation agencies. Financial Accountants
measure and monitor company’s performance and revenues and reporting financial
records to all interested parties on monthly, bi annual or per annum basis. A
managerial accountant remains concerned with day to day operations but a
financial accountant is more concerned with outcome of these operations only. Accounts training course can help you better to resolve these issues.
Both forms of accounting have their own advantages and
disadvantages. You must consider your personality traits before enrolling into
any college or professional accounting courses to get this degree. Now after
reading this article, you can clearly understand the difference between both
forms and choose your path accordingly. Obtaining proper accounting or value added tax training opens up
numerous options for you to work as an accountant in the future. Whether you
pick management accounting or financial accounting, both can be great career
options for you.
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