Financial vs. Managerial Accounting
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The Certified Management Accountant (CMA) was recently developed because of the increased interest for managerial accounting. This title is obtained by a very extensive examination covering topics such as economics, finance, management, financial accounting and reporting, management reporting, as well as decision analysis. (Horngreen, Stratton, & Sundem, p. 20) This designation is "the management accountant's counterpart to the CPA." (Horngreen, Stratton, & Sundem, p. 20) This designation is also regulated very closely by the Institute of Management Accountants (IMA).
Overall, financial and managerial accounting both are very important aspects of the business world. Most companies have some form of each type of accounting incorporated into their business operations. By following the appropriate standards for each, the company will be able to successfully keep track of their financial standing for internal as well as external purposes.
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