Financial accounting is based on historical data and managerial accounting is based on planning ahead, but both are necessary for a company to be successful. The records created by the financial accounting process are needed for regulatory and investment purposes, while the managerial accounting systems are in place for planning, decision making and strategizing.
Learning to take time for managerial accounting is sometimes challenging with all the other required components of running a successful business. Knowing the “why” is an important component of being a good manager. Plan, implement, strategize and continuing to improve business operations through the use of managerial accounting concepts is important to the long term success of a business.