Difference between Financial Accounting and Management Accounting

Financial Accounting: Financial accounting deals with the business transactions and events for the enterprises as a whole and generates information to persons and authorities other than management such as government, creditors, investors etc.

Management Accounting: Management accounting is a branch of accounting that collects and provides accounting, cost accounting, economic and statistical information to various managerial level of the organization to assist them in the performance of managerial functions and their evaluations.

Financial Accounting

Management Accounting

Financial accounting deals with the business transactions and events for the enterprises as a whole. Management accounting deals with the organization in its various units, divisions and sub-divisions.
Financial accounting generates information to persons and authorities other than management such as government , creditors , investors etc. Management accounting generates information for the use of internal management.
Financial accounting data is historical in nature. Management accounting reflects the expected future.
Financial accounting is required to be published and audited by statutory auditors. Management accounting statements are neither published nor audited as it is for internal use.
Financial statements contain monetary information only. Management accounting statements contain both monetary and non-monetary information.
Financial accounting is a must for the tax purpose. Management accounting is optional for the organization.
Financial accounts are wider in nature. Management accounting is  not as wide as the financial accounting.
In financial accounting results are generally reported year on year basis. In management accounting weekly, fortnightly and even monthly reporting is used.
Financial accounting works are governed under “generally accepted principles”. Whereas Management accounting is free to formulate its own rules, procedures and forms.