List seven key differences between Managerial Accounting and Financial Accounting.

1. managerial accounting reports are prepared primarily for managers inside the organization, whereas financial accounting reports are typically prepared for the use of external parties, such as shareholders, creditors and regulatory bodies.
2. managerial accounting is not a mandatory requirement for businesses while financial accounting is.
3. managerial accounting is not regulated by prescribed standards or formats while financial accounting must follow prescribed accounting standards.
4. managerial accounting usually focuses on the parts or segments of an organization while financial accounting is primarily concerned with reporting the activities of the organization as a whole.
5. managerial accounting usually has a strong future orientation while financial accounting has a historical perspective.
6. managerial accounting emphasizes obtaining data relevant to decision making while financial accounting emphasizes the verifiability of data.
7. managerial accounting requires information to be available on a timely basis while financial accounting, with its historical perspective, focuses on precision.