Analysis Of The Integration Of Management Accounting And Financial Accounting

Started from the discussion of the connotation of management accounting and financial accounting and the relationship between two concepts, the article firstly proves the possibility and inevitability of the integration of management accounting and financial accounting. In fact, the emergence and differentiation of these two concepts, is a consequence of social and economic development. Management accounting and financial accounting are both derived from the original accounting activities, and they are both a part of management activity in an enterprise and a division of accounting management technology. Working together, management accounting and financial accounting aimed at the ultimate goal that is to maintain the legitimate rights and interests of the enterprise internal and external stakeholders, and to improve the economic benefit.On the other hand, in practice, management accounting and financial accounting have never been two isolated system, but are closely connected in every link of enterprise management. In terms of information input, the source of the original information for management accounting and financial accounting is the same. In terms of process control, management accounting and financial accounting interact through the application of management accounting tools such as budgeting, and the process of performance evaluation. In terms of results express, the information both generated from management accounting and financial accounting system crossly constitutes a complete enterprise external reporting and internal report.In enterprise management, management accounting and financial accounting have always been integrated. The most typical sample of this integration is comprehensive budget management. However, the comprehensive budget management itself has some obvious flaws, an important one of which is it emphasis financial index, and despised non-financial indicators. By discussing the defects of the comprehensive budget management method and the ways to improve it, taking strategic orientation and the balanced scorecard into account, the article explores a method to enhance the integration of management accounting and financial accounting, which can improve the efficiency of accounting management system.