Financial accounting is the reporting of financial 
information to people outside of the business, e.g. 
shareholders, creditors, or financial analysts. The reports 
consist of financial statements, including the balance 
sheet, income statement, statement of capital, and cash 
flow statement. 
Cost accounting is done primarily for management inside the 
business. It consists of determining the cost of producing 
a product or a service. Cost accounting information is used 
to control the operations of the company, and much of that 
information eventually winds up in the financial 
statements. However cost accounting information is reported 
in whatever form management wants, whereas financial 
accounting reports are prepared in standard formats in 
accordance with generally accepted accounting principles.