Internal reports used by the business leaders for helping them to make decisions are known as
Management accounts whereas the formal reports in which the public stakeholders such as the investors and regulators are seen are known as the financial statements. Management accounts are more frequent and they tend to be flexible and include forecasts, budgets, and performance metrics. Financial statements, however, strictly adhere to rules of accounting and are issued once a year or quarterly. While management accounts aim at assisting businesses to operate efficiently, the financial statements reveal the financial standing and status of a company with regard to compliance.
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