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Financial and Management Accounting Part 2

Here is a suggested table of possible examples. Yours will be different to reflect your particular circumstances.

Interested Group

Reason for Interest


Provides information to back up and inform spending decisions

Institutional Managers

Provides information to inform decisions and ensure spending and income are in line with policies

Institutional Governors

These bodies have ultimate responsibility for financial health of institutions


They hold the purse strings!

General Public

Ultimately the public provides a lot of funding via taxes

Funding Bodies

Provide money for specific projects and need assurance that it is being spent in accordance with their purposes


Will be interested in benchmarking and comparisons

Students and Parents (“Customers”)

To help them decide where to study


To reassure them that you can pay for goods supplied

Lenders (e.g. banks)

To determine if you are credit-worthy

Different groups need different types of information. The major differences are the basis of the distinction between the two sorts of accounting.

The differences are summarised by Atrill and McLaney (2004) as follows:

Financial Accounting

Management Accounting

General purpose

Specific Purpose

Broad overview

Detailed level



Annual (sometimes quarterly)

As frequently as desired

Past orientation

Future as well as Past Orientation

Monetary emphasis – objective, verifiable

Includes non-financial & less objective information

External and internal use

Internal use


These differences are discussed in more detail in Atrill and McLaney, or any other introductory text to which you have access.