Differentiate between managerial accounting and financial management.

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Although both financial management and managerial accounting are essential to running a profitable business, there are some differences. Managerial accounting is concerned with providing information to internal decision makers in order to help them make better strategic decisions regarding the company’s operations. This accounting involves the analysis of past financial performance and forecasting future results based on historical data. It also includes making recommendations about how to best use existing resources to increase profits or decrease costs.

The other focus of financial management is on outside sources of funding and how they can be used in order to reach long-term investment goals, such as capital budgeting, risk management or capital budgeting. This includes evaluating different types of debt instruments like stocks and bonds, as well as different ways to raise capital such as equity offerings or issuing securities. Additionally, it takes into account external factors that can affect a company’s ability to access adequate funds like interest rates or market conditions which may determine whether certain investments should be made at all.

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