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The Relationship Between Managerial and Financial Accounting Ileana Bulletin UASVM Horticulture, 69(2)/2012 Print ISSN 1843-5254; Electronic ISSN 1843-5394 The Relationship between Managerial and Financial Accounting Ileana ANDREICA1), Marioara ILEA1) 1) University of Agricultural Sciences and Veterinary Medicine, Faculty of Horticulture, Manastur Street, no 3-5, 400372, Cluj-Napoca, Romania; [email protected] Abstract. Managerial accounting is a very useful tool in decision making given that managers need various information about the evolution of the economic within organizations they lead, from detailed knowledge of costs and to modeling the behavior of decision makers. The paper aims to identify the linkage between managerial accounting and financial accounting knowing that the managerial accounting has therefore become an integral part of the management process by providing critical information for managers who must plan, supervise and decide in a changing business environment, highly competitive, characterized by imperfect information, disparate objectives and control problems within the organization. Keywords: managerial accounting, financial accounting, decisions Introduction. Accounting information is a connection factor between the economic, legal, financial and fiscal systems. (Bobocea, 2008). If financial accounting informs us about the past and what happened, the managerial accounting is concerned with the future and what will happen (Diaconu, 2006). Financial accounting, known as general, ensures information on asset management, necessary for internal decision-makers, and information on financial results, necessary for external users (exogenous), including the state. Managerial accounting is one that tends to decompose analytically as possible the activity of an entity and serves managers at different organizational levels for their information needs (Briciu et al., 2006). Aims and objectives. Managerial accounting is a very useful tool in decision making given that managers need various information about the evolution of the economic within organizations they lead, from detailed knowledge of costs and to modeling the behavior of decision makers. (Talpeş, 2010). The paper aims to identify the linkage between managerial accounting and financial accounting knowing that the managerial accounting has therefore become an integral part of the management process by providing critical information for managers who must plan, supervise and decide in a changing business environment, highly competitive, characterized by imperfect information, disparate objectives and control problems within the organization. Materials and methods. This research intends to emphasize the need to use the integrated information provided by the management and financial accounting so that the users of such information, the managers, should be able to get in touch with the natural deepness of potential investments, while having the possibility of making decisions with full knowledge of the case. The informational sources used for the achievement of this research include: national or international specialty books: specialty articles published in famous national or international journals; studies and researches performed by various professional organisms. Results and discussion. Financial accounting assumes a passive role of information, and is based on reporting to the outside. It quantifies and records economic transactions and provides financial statements prepared under GAAP. Managers are responsible for financial statements available to investors, state and other interested parties outside the entity. Often the 362 management remuneration is directly conditioned by the information contained in these financial statements. Managerial accounting quantifies and report financial and non-financial information, to help managers in making decisions to achieve organizational objectives. Managers use managerial accounting information for selection, communication and implementation strategies, but also for product design, activity, and decision making. According to the CIMA Chartered Institute of Managerial accountants, the connection between the financial accounting and management accounting can be evaluated relative to the following criteria: Tab.1 The connection between the financial accounting and management accounting Financial accounting Management accounting Main objectives -offers a global view of accounts and Provides patrimonial; -providing the -a detailed picture of each activity, information necessary for their needs -cost calculation and in relations with interested users; - management control -budgetary control Organization and -is based on uniform standards for -are organized according to their needs and leadership professional law nr. 82/91 specific activity of each unit property; -integrates monetary values -integrates monetary values, numerous physical -is standardized and required; measures (amount of material, number of hours worked, time of operation of machinery); -is required by law -is not standardized Framework for -analyzes mainly outflows of -analyzes internal flow to determine production analysis patrimonial unit and outside its costs Working mode -is standardized and each unit -are organized according to criteria, methods, requires property procedures each unit its own property Source: own processing after data from the CIMA Conclusion. This research recommended using the integrated information provided by the management and financial accounting so that the users of such information, the managers, should be able to get in touch with the natural deepness of potential investments, while having the possibility of making decisions with full knowledge of the case. REFERENCES 1. Bobocea, M. (2008). Activity cost determination from the managerial and financial accounting point of view, Conferinta Stiintifica Internationala, Third Edition , Universitatea Alma Mater Sibiu. 2. Briciu, S. and S.C. Teiuşan (2006). The Informational System of Managerial accounting. Journal of Annales Universitatis Apulensis Series Oeconomica. 8(1). 3. Diaconu, P. (2006). Managerial accounting & Business Plans. Economic Publishing House, Bucharest. 4. Talpeş, C.G. (2010). Managerial accounting: The Line between Traditional and Modern. Scientific Session "Excellence in business, present and perspectives", West University Timisoara. 5. CIMA, Chartered Institute of Managerial accountants, www.cimaglobal.com. 363.
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