FINANCIAL REPORTING VS. MANAGERIAL REPORTING - A COMPARATIVE APPROACH

Financial reporting provide detailed information for external users, like as investors, lenders and creditors but it doesn't provide enough useful information for those decisions made concerning the daily activities of the business or regarding planning and controlling the companies' operations on a long term. Management reporting closely examines the process of converting consumed resources into results, allowing managers to set and permanently evaluate the fulfilment of business goals. This article considers a comparative approach between financial and management reporting, analyzing some important differences in terms of the objective of financial and managerial reporting, users of reports, purposes of reports and types of reports.