Finance Differentiated from Accounting
Accounting is a systematic way of recording classifying, summarizing and preparing final account and measuring of business transactions. Using a widely accepted double entry, book-keeping system. Widely accepted double entry, book-keeping system. Accounting provide data on an organization’s activities. The data may be historical, as in the case of last year’s balance sheet, or they may be fore cast of future operations, as in the case of next year’s operating budget. Finance makes use of the information providedly the accounting system to make decisions with respect to inflows and out flows, which help organizations in achieving their objectives. Accounting is a data collection process dealing the accurate recording is a data collection process dealing the accurate recording and reporting; finance management or decision-making process.
Although accountants and financial management perform different tasks, carries in the two area frequently overlap. It is not unusual, for example, for a young man or woman to study accounting an then take a position as an accountant. They, may be in a corporate selling or with a firm of certified public accountants. As the accountants. As the accounts masters his discipline he will become aware of the financial problems facing his firm or clients increasingly, he will advise with respect to courses of action being contemplated by the firm. After a number of years, he may discover that he has become a financial analysar of manager and is no longer doing any accounting on a day-to-day basis. When studying finance, one should recognize the close, natural relationship, as well as the differences, between accounting and finance.