finance vs accounting

2. Accounting and finance are both forms of managing the
money of the business, but they are used for two very
different purposes. One of the ways to distinguish
between the two is to realize that accounting is part of
finance, and that finance has a much broader scope
than accounting.

3.  Accounting is the practice of preparing
accounting records, including measuring,
preparation, analyzing, and the interpretation of
financial statements. These records are used to
develop and provide data measuring the
performance of the firm, assessing its financial
position, and paying taxes.
 Finance is the study of money and capital markets
which deals with many of the topics covered in
macro economics. It is the management and
control of assets and investments, which focuses
on the decisions of individual, financial and other
institutions as they choose securities for their
investments portfolios.
 Measuring, preparation, analyzing, and
interpretation of financial statements. To collect
and present financial information.
 Decision making regarding working capital issues such
as level of inventory, cash holding, credit levels,
financial strategy, managing and controlling cash flow.
 To see how the company is performing, to monitor
day to day accounting operations, and for taxing.
 To forecast the future performance of the business.
 Balance sheets, profit and loss ledgers, positional
declarations, and cash flow statements
 Performance reports, ratio analysis, risk analysis,
estimating break evens, returns on investment, etc

4.  Revenue is acknowledged at the point of sale and not
when it was collected. Expenses are acknowledged
when they are incurred than when they are paid
 Revenues are acknowledged during the actual
receipt in cash as in cash flow and the expenses are
acknowledged when the actual payment is made as
in cash
 Accounting functionalities involve,
1.Recording of transactions (Online transactions,
Journal vouchers)
2.Checking the prime books (Cash book, Journals and
Bank book)
3.Generating financial statements (P&L and B/S).
 Finance functionalities involve,
1. Bank co-ordination,
2. Sourcing and Application of funds,
3. Preparing Budgets and
4. MIS and EIS reporting
 The accounting is the entry of the financials
transactions of the company or firm that include entry of
the ledger accounts, preparation of the trial balances
and preparation of the final statement. The costing is
one of the branch of the accounting that is different
from general entries of the financial transaction that
involved with preparation of the budget of the company,
find out and preparation of the product wise costing that
is useful for finding the manufacturing cost and each
product cost.
 Finance the term itself suggesting that to make
available funds for the companies various operation
like its day to day activities , its future operation and
for the expansion. The finance can also come after
the accounting when the accounting entry done a
person be able to analyze the financial condition
and make a judgment for its future operations and
able to finance its funds.

5. Accounting professions fall into two primary categories:
accountants and auditors.
Accountants generally work within a business or other entity, auditors are often employed by external
auditing firms that routinely check other businesses, usually within a certain industry or sector, for financial
improprieties or mismanagement. However, some accountants and auditors are employed directly by
businesses or individuals (consulting) and internally monitor financial documentation.
Accountancy itself can be subdivided into public, management and government specializations. Public
accountants are responsible for recording and managing all the financial documents their clients, usually
corporations, individuals or government entities, are required by law to disclose; many focus exclusively on
tax law and preparation. Forensic accountants work within the subcategory of public accountants and
investigate or analyze financial crimes such as embezzlement, contract violation and securities fraud.
Certified Public Accountants (CPA’s) are masters of the accounting trade, having received extensive training
in financial and tax reporting. CPA’s must pass one of the most rigorous post-graduate examinations in the
world, which has a less than 50% first-time pass rate, and typically command top employment and salary
prospects within their field.
Unlike public accountants, management accountants work for private companies and oversee internal
financial documentation, including budgets and cost analytics. Their duties overlap with those of financial
analysts in that management accountants may also advise on investment opportunities and asset
management. Government accountants specialize in financial operations subject to government oversight or
conducted by government itself, and their employers are both private and public, from the municipal to the
federal level.

6. Some financial analysts can be categorized according to
their expertise in popular investment products.
For instance, fund managers buy, sell and project the
future value of hedge or mutual funds; portfolio managers
oversee their clients’ entire investment portfolios, which
may include stocks, bonds and real estate.
Other financial analysts are adept at certain analytical or
financial activities, such as ratings analysis, the study of a
business or government’s ability to repay its debts and
risk analysis, which involves projecting ROI on various
investments and advising clients accordingly.
Another way of dividing financial analysts is “buy-side”
versus “sell-side.”
Buy-side financial analysts provide investment
procurement and management strategy for their clients;
sell-side financial analysts advise sales teams disbursing
stocks, bonds and other financial products.

7. A bachelor’s degree in accounting is typically required for the following auditing-
related careers:
•Internal auditor: Internal auditors review organizations to determine how well funds
are managed. They may point out ways to reduce waste, avoid fraud and improve
profits. Jobs for accountants and auditors are projected by the BLS projects to grow
by 13% through 2022.
•Information technology auditor: IT auditors review the controls for an institution’s
computer and data processing systems. Their job is to ensure that financial data is
accurate and reliable. The BLS projects employment for accountants and auditors to
increase by 13% through 2022.
•Financial examiners: Financial examiners keep tabs on banks and other financial
institutions, to make sure they comply with federal and state laws.
They review financial information and loan documentation, and establish procedures
to ensure regulatory compliance.
Financial examiners also help consumers avoid predatory loans
that charge excessive interest and can damage credit scores. The BLS projects
steady job growth for financial examiners through 2022.

8. A degree in economics can lead to careers such as:
•Management analyst: Management analysts are projected to be in high
demand in coming years, as the BLS projects these jobs to grow by 19% through
2022. Management analysts improve organizational efficiency by analyzing
problems and developing plans to solve them. They may recommend alternative
practices, new procedures or organization changes.
•Budget Analyst: Budget analysts work with private and public organizations to
safeguard their finances and monitor spending. They develop budgets, ensure
compliance with procedures and regulations, and make recommendations to
management. The BLS projects steady growth for budget analyst jobs in the
coming years.
•Financial examiners: Financial examiners monitor banks and other financial
institutions’ financial health, by reviewing their balance sheets, loan
documentation, and assets and liabilities. They specialize either in risk scoping or
in consumer compliance. Financial examiners are often employed by the federal
or state governments and other agencies. The BLS also projects steady job
growth for financial examiners through 2022.