Differentiate between managerial accounting and financial management.

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Both managerial accounting and financial planning are important for running a successful company, but they do have distinct differences. Managerial accounting is concerned with providing information to internal decision makers in order to help them make better strategic decisions regarding the company’s operations. This accounting type involves analysing past financial results, forecasting the future based upon historical data and making recommendations on how to utilize current resources so as to maximize profits, or minimize costs, going forward.

The focus of financial management is on long-term investments such as risk management and capital budgeting. The assessment of different debt instruments like bonds and shares, along with the various methods for raising capital such as equity or debt securities is also part of financial management. Additionally, it takes into account external factors that can affect a company’s ability to access adequate funds like interest rates or market conditions which may determine whether certain investments should be made at all.