DISCUSSION BOARD Essay Example | Topics and Well Written Essays - 500 words

DISCUSSION BOARD - Essay Example al accountants are primarily focused on what the enterprise has done and how it has performed, managerial accountants are also concerned with what is happening now and what may happen in the future. Because they have different roles and different audiences, they also have different reporting methods, statements, and standards. Financial accounting has, as its basic goal, to provide clear and accurate information to external parties that will make decisions on credit and investment. Because this audience is wide and unknown to the preparer of the information, it is mandatory that the financial accountant follows traditional and acceptable conventions. The financial accountant will file income statements, balance sheets, cash flow, and earnings statements. To standardize the reporting process and give credibility to the reports, the financial accountant is required to follow Generally Accepted Accounting Procedures (GAAP). These reports are generated at set intervals, such as quarterly or yearly, and audited by independent auditors. These procedures insure that the decision-makers will have a reference point with which to make an informed decision. Managerial accountants, more focused on current and future business decisions, prepare statements to be used by internal decision-makers. These reports assess past performance as well as forecast the future direction of the enterprise. Because this information is used by management and directors to make daily decisions, it is focused on timeliness and centered on efficiency and return. The frequency that these reports are generated is set by the internal needs of the enterprise and may be daily or even on a real time or as needed basis. The reports are more apt to center on budgets, costs, forecasts, and efficiency than income or cash flow. An enterprise may have many custom statements and reports tailored to their individual requirements and because the information is only used internally, the only reporting standards