Difference between financial accounting and operational Accounting
In accounting, a distinction is made between financial accounting (FIBU) and operational accounting (BEBU). Learn about the differences with the help of our article!
Financial accounting
The financial accounting records the current business transactions. The balance sheet is used to determine the asset situation and the income statement is used to determine the profit or loss. Some companies also keep a cash flow statement, which is used for liquidity management/financial planning.
Financial accounting is mandatory for certain companies and is then based on commercial and tax regulations. Financial accounting is also called external accounting, as it is mainly addressed to external addressees (shareholders, creditors, the state, etc.) and at the same time forms the basis for business accounting.
Operational accounting
Operational accounting, also referred to as "cost accounting", represents the internal accounting of a company and records the costs and revenues of individual products and services. No company is obliged to keep a cost accounting system; nevertheless, the management accounting system is an essential instrument of corporate management as an objective basis for calculations as well as for cost and success control. For example, in addition to interest on borrowed capital, interest on equity capital is also taken into account in management accounting.
The operational accounting is divided into three levels:
- Cost type accounting: Which costs have been incurred? (Recording)
- Cost centre accounting: Where have the costs been incurred? (Distribution)
- Cost unit accounting: what have the costs been incurred for? (Allocation to cost units)
The distribution and allocation of the recorded cost types is usually done in tabular form with the help of a so-called operating accounting sheet.
