1. Financial Accounting ????

Financial accounting focuses on providing information to external users like investors, creditors, regulatory bodies, and the public. Accounting Services in Cincinnati. Its main goal is to prepare general-purpose financial statements that accurately report the company's financial performance and position over a specific period.

Key Function: Recording, summarizing, and reporting financial transactions according to a standardized set of rules, typically Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

Outputs: The main outputs are the Balance Sheet, Income Statement, and Cash Flow Statement.

Focus: It is historically oriented, looking at past performance to ensure transparency and accountability to outside parties.

2. Managerial (or Management) Accounting ????

Managerial accounting is designed to provide information specifically for a company's internal users, such as managers and executives, to aid in planning, controlling, and decision-making.

Key Function: Analyzing financial and non-financial data to help management set budgets, forecast future performance, evaluate departmental efficiency, and assess the costs and benefits of various business activities.

Outputs: This results in various internal reports, including budgets, cost analysis reports, and variance analysis.

Focus: It is future-oriented and does not need to adhere strictly to GAAP or IFRS, allowing it to be customized to meet the specific needs of the management team.

3. Cost Accounting ????

Accounting Services Cincinnati. Often considered a specialized subset of managerial accounting, cost accounting is focused solely on the costs associated with a business's production of goods or services.

Key Function: Identifying, measuring, analyzing, and controlling a company’s various production costs, including materials, labor, and overhead.

Outputs: Detailed cost reports that help management set accurate pricing, manage inventory valuation, and identify areas for cost reduction.

Focus: Its primary objective is cost control and determining the actual cost per unit of product, which is crucial for manufacturing and production-heavy industries.