what are the differences in financial accounting, cost accounting and management accounting

Financial Accounting, Cost Accounting and Management Accounting are three different branches of accounting. The difference between the three branches of accounting are given below.

Financial Accounting is a process of identifying the events of financial nature, recording them in Journal, classifying in their respective ledgers, summarising them in Profit and Loss Account and Balance Sheet and communicating the results to the users of such information, viz. owners, government, creditors, investors etc.

Cost Accounting is process of classifying, recording and ascertainment of cost that provides required information for controlling cost and removing inefficiencies from the production process.

Management Accounting is a process of accounting under which management uses the information provided by financial and cost accounting for drafting the future policies, controlling, organising and decision-making process.