Internal accounts are used by management to clarify information, account for interdepartmental activities and address temporary bookkeeping issues.
Departmental accounting is a highly narrow form of accounting which focuses data entry and final reporting by respective sales centers or production centers of a company. It does require modification of the bookkeeping process and information reporting systems.
One of the goals of accounting is to report to management performance results, specifically financial performance. Since most businesses sell more than one product or render more than one service, management is interested in understanding the performance of the respective products or service. To successfully report this information, the accountant uses departmental accounting to divide the products or services into categories.