Financial accounting is designed for external use to provide the public with financial information, so that they can make a wise decision to invest or support financially a publicly traded company and it is essential that they comply with external standards set by the Financial Accounting Standards Board and are subject to sanctions up to a fine or prison sentence . Conversely, management accounting does not necessarily have to follow the guidelines set by the Financial Accounting Standards Board; however, the discretionary power of the organization is vested in its management. Finally, we will evaluate how Managerial Management helps or improves operations and finances.