Financial accounting means creating financial statements by using financial data and managerial accounting simply means processing used to account for business transactions. Financial accounting focuses on the external processes of the organization. Based on the information, financial accounting is historical and the financial statements provide information for the defined period. Short-term and long-term decisions regarding financial statements are made by using financial accounting. Also, financial accounting in the business is mainly used to track the business operations and it provides a snapshot of the financial health of the business. It provides data from different financial statements. Financial decisions are used for raising funds as well as for investing in assets and most importantly different financial statements are used including balance sheet, and income statement as well as company provide the information to all the investors and give more power in decision-making (Garbowski, et al., 2019).
Garbowski, M., Drobyazko, S., Matveeva, V., Kyiashko, O., &Dmytrovska, V. (2019). Financial accounting of E-business enterprises. Academy of Accounting and Financial Studies Journal, 23, 1-5.