Management and Financial Accounting ReportThe role of management accounting is increasing. These managers must be able to effectively increase the involvement and scale of organizations. These business managers must also be aware of the rapid growth and implementation of technology. Managers must also be familiar with the regulatory environment, be able to successfully compete globally and have a growing emphasis on excellence. In examining the main differences between financial and managerial accounting, we find that with financial accounting the information is reported in the statements. The financial statements objectively and periodically report the results of past operations and the financial position of the company according to Generally Accepted Accounting Principles (GAAP) (Vallabhaneni, 2003). Examples include shareholders, creditors, government agencies, and the public. On the other hand, management accounting information includes both historical and estimated data used by management in conducting daily operations, planning future operations, and developing overall business strategies (Vallabhaneni, 2003). Management accounting also includes information for decision making, planning, directing, controlling an organization's operations, and evaluating its competitive position. Managerial accounting has internal users of information. These users include business managers at all levels of the organization. Financial accounting uses external users of information. These users include shareholders, financial analysts, lenders, unions, consumer groups, and government agencies. This is hard data and must meet the audit criteria to be acceptable. Management accounting rules are established within the company to achieve management objectives related to creating value for the company. Management accounting data should only be relevant to management decisions. Taking a closer look at the reports, managerial accounting uses production cost reports for decision making. These include preparing detailed plans, budgets, forecasts and performance reports for internal decision makers. Managerial accounting helps managers plan and administer the company's operations. Accountants prepare budgets to communicate management objectives in financial terms by identifying, measuring, accumulating, analyzing, interpreting and communicating information. After a budget is adopted, performance reports compare actual results to the budget. Cost accountants help management track how much it costs a company to make the product or service (Shpargalka, 1999). Financial accounting incorporates the preparation of corporate financial statements primarily for users external to the company. These reports are used by owners, potential owners of a business, and people who have lent money to the business. Furthermore, shareholders, suppliers and banks also benefit from the financial reports generated (Horngreen, Stratton and Sundem, 2002). The following table will explain the differences between financial and managerial accounting (Weygandt, Kieso and Kimmel, 2001).