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Financial accounting is the field of accounting concerned with the preparation of financial statements and documents for decision makers and government agencies. Financial accounting is often contrasted with management accounting, which is the internal communication of financial information within a business or institution.
Instead, financial accountancy is involved with communication between multiple entities, such as stockholders, suppliers, banks, employees, government agencies, owners, and any other stakeholders. There are financial accountants working in all corners of the world, with a higher percentage of firms and individual operators working from major cities and regional centres. For example, there is a high population of financial accountants in Berlin, London, New York, and other world cities, due to the increased activity that takes place in these centres.

Financial accountancy is primarily concerned with the preparation of financial records for people outside of an organisation. Because of this, financial accounting is not really concerned with the day to day running of a business or institution, but is instead concerned with historical financial data and record keeping. Financial accounting is involved with the creation of financial summaries, often in the particular format that is required by other entities. Because of the exacting requirements that are placed on financial documents and records, it is important that all financial accountants are experienced, certified, and know how to format financial information in the most appropriate way. Financial accountancy is governed by both local and international standards, with different rules and regulations existing in different local jurisdictions.

The main topics of financial accountancy can be summarised in the accounting equation, which is a short hand way to describe the very basic tenants of financial accounting. The accounting equation is Assets = Liabilities + Owners’ Equity, and can be used in a wide range of situations. Much of the work performed by financial accounts in Berlin and elsewhere is either directly or indirectly concerned with this statement. Depending on the jurisdiction of operation, there are a variety of different qualifications and standards which need to be applied to financial accountants and financial accounting firms. Some of these include Certified Public Accountant (CPA), Chartered Accountant (CA or other national designations), and Chartered Certified Accountant (ACCA).