Financial accounting and managerial accounting hold great significance in a company because they lead to the creation of both external and internal reports that represent the overall financial health of the business.
There are several similarities between these types of accounting, but they are also quite different from each other in terms of accounting standards, compliance, and usage.
Managerial accounting can be defined as the accounting practice that involves the identification, measurement, analysis, and interpretation of financial information to managers within an organization.
Financial accounting deals with recording, summarizing, and reporting the company’s financial activities to the public, investors, and the regulations.
It can be argued that financial accounting is mandatory and more important than managerial accounting because it involves compliance with the legal rules and regulations and industry standards to prepare reliable financial reports.
Generally, accounting firms in Singapore provide both services so that companies can easily outsource their accounting services and rely on professionals to get the best results.