Financial accounting provides information for third parties of an organization (Horngren,
Sundem, & Stratton, 2005). That is why it is vital for financial accountants to provide
useful and comprehendible information that can aid them in their decision making. Such
information that can help is assessments of amounts of cash flow, timing of cash flow, and
even uncertainty of cash flow. Also economic resources of the enterprise, claims on those
resources, the effects of transactions if any, events, and circumstances that could effect
them. Responsibilities of financial accountants are recording the business financial
information, then classifying the information, along with summarizing and communicating
it to the public.
Management accounting provides information for managers in an organization (Horngren,
Sundem, & Stratton, 2005). An organization is a team and to help the team the
management accountants have to provide correct and useful information too. They have to
determine the appropriate financial data they need. If they analyze the information
correctly it helps calculate the return on investments for the team which makes the
managerial accountant the LEAD financial accountant in a way. Experienced management
accountants develop projections carefully to put the team at ease about the uncertainty of a
product or project being successful or not. Responsibilities of management accountants are
collecting and compiling the information, then preparing the standardized reports,
interpreting and analyzing the information, and being involved in the decision making.