Financial accounting and financial reporting are somewhat related but are two different concepts. u003cstrongu003eFinancial accounting is a branch of accounting that keeps track of financial transactions.u003c/strongu003e The transactions are prepared in the form of statements. The purpose is to distribute to external users who have one or two business deals with the organization.u003cbr/u003eu003cbr/u003eu003cstrongu003eFinancial reporting is much broader than financial accounting.u003c/strongu003e It does not include only financial statements but also entails a company’s annual report. It covers all the information for distribution to people outside the business entity. u003cbr/u003eu003cbr/u003eFinancial reporting includes financial statements, annual reports on conference calls and press releases, and annual reports for governmental agencies like the Securities Exchange Commission (SEC).