Differences Between Accounting and Financial Management

Accounting and financial management are different services that complement each other. However, financial management evolved from accounting services due to the need for additional services an accountant alone did not provide.

Financial management includes financial planning, control, and decision-making, aiming to help an individual or business meet its financial objectives. This is through applying general managerial principles when making decisions and focusing on how its assets and resources are used.

Financial management can happen at any time during the year; it focuses on the future and not the past, uses accounting data to help make financial decisions and creates detailed reports on the future courses of action to take.

In comparison, accounting refers to the reporting on your business financial information. The key goal is to provide this information using set procedures, giving creditors, the business’ management team, investors and other interested parties a complete financial picture.

Accounting is usually done in a specific timeframe, be it quarterly, half-yearly and annually. The reports are only financial statement summaries, not actions to take moving forwards.

Do I Need an Accountant or a Financial Management Services?

You require an accountant to help prepare your business’ financial statements and understand your financial position. You need financial reports to give you, lenders and stakeholders regular updates on your company’s well-being. An accountant can also assist with cloud accounting software, bookkeeping tasks and tax support.

You will need financial management services for planning and monitoring your business’s financial goals.

You may find that many of our local accountancy firms offer both accounting and financial management services, making things even easier for you. Find your local accountant or financial manager here today on our website, or for personal assistance, please contact us directly.