What is accounting?
It is the complete process of identifying, recording, dividing, summarizing, reporting and examines the financial data. It is a skill of systematically recording the business dealing, for keeping a proper track of financial statements on the basis of AS. With the help of the economic statement of an individual, internal audit, and tax audit is presented at the end of the financial year.
It is a readable statement to the users after the audit, which can analysis the performance and economical position of the business for a particular period of time. The financial statement user includes all the stakeholders such as debtors, suppliers, lenders, creditors, investors, shareholders, employees, etc.
What is Finance?
It is the science of the achievement and share of funds effectively. It is a main term, which studies about cash and assets market along with the deal and management of funds by industry. The main aspect of finance is the importance of time.
It helps in examine the budget for choosing a better investment plan, which lowers the danger factor for a company.
Key Differences between Accounting and Finance
- The accounting is a record that keeping of transactions of business while the Finance is the study of the funds management in the best possible way.
- Accounting is the sub dividing of Finance.
- The accounting data is helpful for the users of the economical statement for understanding the economical position of the company while Finance is useful in forecasting the performance of the individual in the future.
- Accounting uses profit Statement, stability Sheet, Cash Flow Statement, etc. are it tools. On the other hand, influence, Capital Budgeting, Ratio Analysis, danger Analysis, Working total cost Management, etc. are financial tools.
- There are 4 different branches of accounting while there are only 3 branches of finance.
Accounting is an art of keeping the systematic record of company events and transactions, so as to determine the financial position and profitability factor of the company at the end of financial year. It is not same as finance factor. Technically, finance is a part of economics which deal with resource distribution and management.
Accounting has an aims to providing financial information of the business to the users for the purpose of coherent decision making, investment focuses on matters relating to cash, credit, banking, and markets.
|Basis for Comparison||Accounting||Finance|
|Meaning||Accounting is an art of recording and reporting of the transactions of company dealings.||Finance is the science of funds management of a company work.|
|Branches||Cost accounting, Management accounting, Financial Accounting, Tax Accounting etc.||Public Finance, Corporate Finance, Private Finance etc.|
|Career||Accounting professionals can become auditors, tax consultant, accountants, etc.||Finance professionals can become an finance consultant, financial analyst, investment banker, etc.|
|Division||It is a part of finance.||It is not including in accounting.|
|Objective||It provides data regarding to the solvency problems of the company to the examiner of the financial statement.||It studies the capital market and funds rising of business for making future strategy.|
|Tools||profit Statement, Balance Sheet, Cash flow Statement etc.||Capital Budgeting, Risk Analysis, Working Capital Management, Ratio Analysis, etc.|