Managerial accounting reports and information are used by external users and financial accounting by internal users.

Managerial Accounting

Managerial accounting involves the provision of financial information to management for decision-making, planning, and control purposes.

Financial Accounting

The field of accounting focused on the summarization, analysis, and reporting of financial transactions pertaining to a business.

External Users

Individuals or entities outside a company who use its financial information, such as investors, creditors, and regulatory bodies.