Managerial and Financial Accounting Report
"Businesses exist because accountants facilitate them (Brower, 2006)." There are two different types of accountants, managerial and financial. There are many similarities and differences between these closely related professions. Managerial accountants are governed by the Institute of Management Accountants and financial accountants are governed by the American Institute of Certified Public Accountants. During the course of this paper the similarities and differences of financial and managerial accountants will be discussed. In addition, the code of ethics of the Institute of Management Accountants will be explained and the reports each type of accountant prepares will be described.
The main differences of managerial and financial accountants are the people they prepare accounting reports for. Managerial accountants are the accountants that provide information and reports to people inside the organization. Without managerial accountants, managers would not have the information to make informed decisions about the company. Financial accountants are the accountants that provide information and reports for people outside the organization. Investors need reports and information in order to make educated investing decisions and governing bodies need reports and information in order to enforce laws and accounting regulations. The two sides of the profession are similar because they are both interested in presenting the company in the best possible financial light. In recent years ethics in accounting has become a major topic in the profession. It has become so important due to the recent accounting scandals. Because of these scandals and the impo ...