Managerial accounting provides internal reports tailored to the needs of managers and officers inside the company. On the other hand, financial accounting provides external financial statements for general use by stockholders, creditors, and government regulators. The table compares the differences between managerial and financial accounting based on the information prepared.
| Preparing Information | Managerial Accountants | Financial Accountants |
|---|---|---|
| What info? | Internal reports | Financial statements |
| Who uses info? | Managers who work for the company and officers of the company | Stockholders, creditors, and government regulators |
| When prepared? | Whenever needed | Quarterly and annually |
| How detailed? | Very detailed, to address specific decisions to be made by managers | Very general, pertaining to the whole company |
| How prepared? | In accordance with the needs of managers and officers | In accordance with Generally Accepted Accounting Principles (GAAP) |
| How verified? | By internal controls among managerial accountants | By external CPAs |