One major difference between financial accounting and managerial accounting is that financial accountants prepare financial statements for external investors while managerial accountants prepare financial statements for internal managers.

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Financial accounting focuses on providing financial information to external parties such as investors, creditors, and regulatory bodies, and involves preparing financial statements according to standardized rules. Managerial accounting, on the other hand, is aimed at providing information to internal managers for the purpose of planning, decision-making, and controlling operations, and does not necessarily follow standardized formats.

One Major Difference Between Financial Accounting and Managerial Accounting Is