Essentially, management accounting aims to inform an internal audience while the financial accountant's records are focused on the needs of an external audience regarding organization. Management accounting appears as an operational tool compared to financial accounting whose primary objective is to communicate financial data. Although the financial data that constitutes the reports is essentially the same, management accounting can be limited to cost accounting at the department and product line level and discover for example the reason for the decline in performance or profits, by emphasizing short-term profit. Financial accounting, on the other hand, is limited to Generally Accepted Accounting Principles (GAAP), in order to provide overall performance to stakeholders such as investors and stakeholders. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay. Financial accounting records are therefore periodic based on established standards, while management accounting is based on financial information required for rapid action and decision making on the operational level. Financial accounting therefore cannot be used in decision making as it only provides insight into the past through a record of past transactions. Management accounting is also subjective and is not always linked to accounting rules such as auditability which is a major concern in financial accounting. Besides the focus of both areas and their similar underlying financial data, management accounting does not adhere to purely control data relying on other information to inform financial management decisions where relevance is more critical than accuracy (Angrawal, 2010). The scope of management accounting is also broader, as management accounting uses methods such as ABC methods to detail segment reporting including employee and customer data, while financial accounting sticks to the overall financial summary of the organization. It should also be noted that unlike financial accounting, an organization can decide to move away from all management accounting. As highlighted by the facts that distinguish financial accounting from management accounting, the guidance and direction of data obtained from the latter does not require a mandate. . Management accounting informs future-oriented decision-making and keeps financial transactions relevant and timely for each sector. It is therefore the operational accounting system available for decision making by managers in daily activities. Planning is an essential function that managers cannot perform effectively without adequate information on the appropriateness of the initial action. The selection of alternatives in financial matters should also not rely solely on history, because opportunities come with changes in demands, as do challenges, but preparations must be made before all the information are not available. For example, budgeting uses internal management accounting reports to make annual quantitative preparations. Management accounting could also be a useful method of encouraging employee and staff development, through the provision of internal records of daily throughput for evaluation or identification purposes.