Difference Between Accounting And Finance

Difference Between Accounting And Finance

Accounting and Finance are two different disciples of business but both play vital roles to keep a business afloat. Finance basically is the study and management of assets, planning of cash inflows and out flows of capital as well as day to day expenses. Finance takes the organised information provided by accounting and uses it to help run a company on a daily basis and make long term financing and budgeting decisions.

Accounting on the other hand is about recording and reporting of every single financial transaction which include maintenance of sales day book, purchase day book, cash book, etc. These departments require a lot of paper and physical documents in huge volume. To keep up the workflow, one must have a high volume business printer such as Konica Minolta Bizhub is an utmost necessity to keep up with the workflow.

ALSO READ: Meaning and types of Accounts

The following are the Key differences between Accounting And Finance:
Definition:
Accounting: Keeping and preparation of transaction/financial records
Finance: The finance is concerned with Management of assets and liabilities according to the current and future status of the business.
Function:
Accounting: Interpret, past and present financial statements and records.
Finance: Decision making on financial strategies in an organization and also manage and control cash flow
Goal:
Accounting: Monitor accounting operations on a daily basis. Tax preparation and filing.
Finance: Forecast the company’s future performance.
Paper trail and documents:
Accounting: Balance sheets, income ledgers, invoices and cash flow statements etc.
Finance: Finance deals with Performance reports, return of investments, etc.
Printing Solutions:
Like many business papers and report, most financial and accounting documents are time-sensitive and often times comes in multiple pages. They should be printed quickly, accurately and securely. The Konica Minolta Bizhub is an award-winning business printer. Its line of products are work friendly and were developed and dedicated for heavy-printing requirements and flexible workflows.

Accounting and finance are important in business. they are two different functions that require different skill sets. However, both areas revolve around the company’s ability to manage assets and therefore they commonly work hand in hand.

ALSO READ: Three Golden rules of Accounting

SUMMARY
The core difference between finance and accounting is that accounting lays more emphasis on the day-to-day flow of money in and out of a company or institution, while finance is a broadly deals with the management of assets and liabilities and the planning of future growth.

If you want to exercise high-level control over a company’s strategy, then you will be needing finance but if you want to take a detailed look at a company’s books you’re probably more interested in accounting. People often said that accounting looks back to a company’s past financial transactions, while finance looks forward to plan future acquisition of assets.

Accounting is all about accurate reporting of past events and compliance with laws and standards while Finance is about looking forward into the future and growing a pot of money or mitigating losses. If you like thinking in terms of a longer time plans, then you may be happier in finance than in accounting.

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