Financial and Managerial Accounting is used to make sound financial decisions about an organization. They provide information about past quantitative financial activities and are useful in making future economic decisions. (Albrecht, Stice, Stice, & Skousen, 2002) The same financial data is used to generate reports for each accounting process, but they differ in some ways. Financial accounting primarily provides external reporting for external users such as shareholders, creditors, regulatory authorities and others. (Garrison, Noreen and Brewer, 2010) On the other hand, management accounting involves providing information that addresses the internal viability of the organization and is tailored to meet the needs of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002) Management accounting addresses aspects related to the return on investment (ROI) of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002) A company's profitability depends on periodic attention to its asset turnover and profit margin. This process is designed to support decision-making that adds value to an organization. Organizations are sometimes large and divided. Planning, monitoring and evaluation are essential to an effective decision-making process. (Albrecht, Stice, Stice and Skousen, 2002) An organization must make decisions regarding its future products, services, operations and investments. It must begin a process of monitoring costs, quality and performance. Finally, it must analyze results and variances, providing feedback to evaluate personnel areas, divisions, products and processes. (Albrecht, Stice, Stice and Skousen, 2002) Management accounting is specific to each organization. This internal ...... middle of paper ...... and management accounting is the type of reports prepared. Internal reporting is tailored to meet management needs and may vary from company to company. External reporting, however, follows certain standards and guidelines and is therefore more uniform among companies. (Albrecht, Stice, Stice, & Skousen, 2002) No government regulator or auditor will insist that a company implement a good management accounting system. (Garrison, Noreen, and Brewer, 2010) Choosing how to collect and use information in a business is strictly a management decision and is part of the company's competitive strategy. Works Cited Albrecht, WS, Stice, JD, Stice, EK and Skousen, k. F. (2002). Accounting concepts and applications. Cincinnati: Southwest. Garrison, RH, Noreen, EW and Brewer, P. v. (2010). Management accounting. New York: McGraw Hill/Irwin.