Different sort of post today.
If you’re a university undergraduate or recent graduate and you want to get into accounting. You might not be sure what sort of accounting you want to get into so I thought I would provide a brief insight to my take on two particular types of accounting.
I have experienced both Management and Financial accounting as I started off in management and now currently working in financial accounting. In my experience I can say the biggest difference in financial accounting and management accounting is the level of detail in which analysis takes place. This is because within management accounting this mainly appeals to internal stakeholders such as your management, directors etc. So the main purpose is really understanding the figures and providing an insight to why.
Figures within management accounting primarily help with the decision making within a company. Such as budgeting, cost-cutting and other internal aspects.
Financial accounting is in a lot more depth as this now not just involves internal stakeholders but external ones too. For example if you you work within financial services, you will be required to produce a set of accounts for external bodies such as the FCA (Financial Conduct Authority). So the main focus is to produce accurate data that will be scrutinised by auditors maybe and other people outside the company.
Financial Accounting I find has given me some in depth analytical skills which I can benefit in the long run into becoming qualified and having experienced both I can say which one I prefer.