Account vs. Accounting: What's the Difference?
Edited by Aimie Carlson || By Janet White || Updated on September 28, 2023
Account refers to a record or statement of financial expenditure or receipts, while accounting is the process, system, or profession of maintaining accounts.
Key Differences
Account and accounting serve different functions within the realm of finance and business. An account is a precise and orderly record of the financial transactions of an individual or organization. It holds details about financial transactions and is fundamental to understanding an entity's financial status. On the other hand, accounting is a broader concept. It is the systematic practice, work, or process of communicating and recording financial information. It is essential for the management of financial affairs and plays a pivotal role in decision-making processes within organizations.
The term "account" can also represent a relationship between a customer and a service provider. For instance, one can have an account with a bank or a social media platform. This aspect of an account refers to an arrangement by which the entity receives a service, product, or access to resources. In contrast, accounting, being the comprehensive system that it is, extends to involve principles, standards, and procedures aimed at controlling, managing, and auditing financial resources and transactions.
Account is a versatile term, serving as both a noun, representing a record, and a verb, representing the act of considering or regarding in judgment. For instance, one may account for expenses incurred during a business trip. In contrast, accounting remains grounded in its role as a noun, encompassing a wide range of activities related to managing financial transactions, such as analyzing, verifying, and reporting financial information.
In essence, an account is integral to accounting. Without accounts, the systematic approach that accounting provides in organizing, assessing, and managing financial information would be unattainable. Every account holds specific pieces of financial information, while accounting is the umbrella under which all these accounts are managed, organized, and interpreted, facilitating an understanding of an entity’s economic activities.
Comparison Chart
Definition
A record or statement of financial transactions of an individual or organization.
The process, system, or profession of maintaining, managing, and interpreting accounts.
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Part of Speech
Can serve as both a noun and a verb.
Primarily serves as a noun.
Scope
Narrower, focusing on individual records.
Broader, encompassing a range of activities related to financial management.
Application
Represents the relationship between a customer and a service provider, or an individual record of transactions.
Encompasses principles, standards, and procedures related to financial management.
Field of Usage
Primarily used in finance and banking.
Extensively used in finance, business management, and auditing.
Account and Accounting Definitions
Account
A narrative or record of events.
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Accounting
The provision of detailed financial information.
The firm specializes in tax accounting services.
Account
A reason given for a particular action or event
What is the account for this loss?.
Accounting
The systematic recording, analyzing, and reporting of financial transactions.
The accounting department is responsible for preparing financial statements.
Account
A report relating to one's conduct
Gave a satisfactory account of herself.
Accounting
A field of study and profession dedicated to carrying out those tasks related to managing an organization’s financial resources.
He is pursuing a degree in accounting to become a Certified Public Accountant.
Account
A basis or ground
No reason to worry on that account.
Accounting
The process or work of keeping financial accounts.
Proper accounting is crucial for understanding the financial health of a company.
Account
A formal banking, brokerage, or business relationship established to provide for regular services, dealings, and other financial transactions.
Accounting
A method of measuring the economic activities of an organization and communicating these results to interested parties.
Accounting standards ensure consistency in financial reporting.
Account
A precise list or enumeration of financial transactions.
Accounting
The practice or profession of maintaining the financial records of a business, including bookkeeping as well as the preparation of statements concerning the assets, liabilities, and operating results.
Account
A sum of money deposited for checking, savings, or brokerage use.
Accounting
Present participle of account
Account
A customer having a business or credit relationship with a firm
Salespeople visiting their accounts.
Accounting
(business) The development and use of a system for recording and analyzing the financial transactions and financial status of an individual or a business.
Account
A private access to a computer system or online service, usually requiring a password to enter.
Accounting
A relaying of events; justification of actions.
He was required to give a thorough accounting of his time.
Account
Worth, standing, or importance
A landowner of some account.
Accounting
(law) An equitable remedy requiring wrongfully obtained profits to be distributed to those who deserve them.
Account
Profit or advantage
Turned her writing skills to good account.
Accounting
A convincing explanation that reveals basic causes;
He was unable to give a clear accounting for his actions
Account
To consider as being; deem. See Usage Note at as1.
Accounting
A system that provides quantitative information about finances
Account
(accounting) A registry of pecuniary transactions; a written or printed statement of business dealings or debts and credits, and also of other things subjected to a reckoning or review.
Accounting
The occupation of maintaining and auditing records and preparing financial reports for a business
Account
(banking) A bank account.
Accounting
A bookkeeper's chronological list of related debits and credits of a business; forms part of a ledger of accounts
Account
A statement in general of reasons, causes, grounds, etc., explanatory of some event; a reason of an action to be done.
No satisfactory account has been given of these phenomena.
Accounting
A statement of recent transactions and the resulting balance;
They send me an accounting every month
Account
A reason, grounds, consideration, motive; a person's sake.
Don't trouble yourself on my account.
On no account
On every account
On all accounts
Account
A record of events; a relation or narrative.
An account of a battle.
Account
An estimate or estimation; valuation; judgment.
Account
Importance; worth; value; esteem; judgement.
Account
Authorization as a specific registered user in accessing a system.
I've opened an account with Wikipedia so that I can contribute and partake in the project.
Account
(archaic) A reckoning; computation; calculation; enumeration; a record of some reckoning.
Account
(uncountable) Profit; advantage.
The young man soon turned his woodworking skills to some account.
Account
To provide explanation.
Account
To present an account of; to answer for, to justify.
Account
To give an account of financial transactions, money received etc.
Account
(transitive) To estimate, consider (something to be as described).
Account
(intransitive) To consider that.
Account
(intransitive) To give a satisfactory evaluation for financial transactions, money received etc.
An officer must account with or to the treasurer for money received.
Account
(intransitive) To give a satisfactory evaluation for (one's actions, behaviour etc.); to answer for.
We must account for the use of our opportunities.
Account
(intransitive) To give a satisfactory reason for; to explain.
Idleness accounts for poverty.
Account
(intransitive) To establish the location for someone.
After the crash, not all passengers were accounted for.
Account
(intransitive) To cause the death, capture, or destruction of someone or something (+ for).
Account
To count.
Account
To calculate, work out (especially with periods of time).
Account
(obsolete) To count (up), enumerate.
Account
(obsolete) To recount, relate (a narrative etc.).
Account
A reckoning; computation; calculation; enumeration; a record of some reckoning; as, the Julian account of time.
A beggarly account of empty boxes.
Account
A registry of pecuniary transactions; a written or printed statement of business dealings or debts and credits, and also of other things subjected to a reckoning or review; as, to keep one's account at the bank.
Account
A statement in general of reasons, causes, grounds, etc., explanatory of some event; as, no satisfactory account has been given of these phenomena. Hence, the word is often used simply for reason, ground, consideration, motive, etc.; as, on no account, on every account, on all accounts.
Account
A statement of facts or occurrences; recital of transactions; a relation or narrative; a report; a description; as, an account of a battle.
Account
A statement and explanation or vindication of one's conduct with reference to judgment thereon.
Give an account of thy stewardship.
Account
An estimate or estimation; valuation; judgment.
Account
Importance; worth; value; advantage; profit.
This other part . . . makes account to find no slender arguments for this assertion out of those very scriptures which are commonly urged against it.
Account
To reckon; to compute; to count.
The motion of . . . the sun whereby years are accounted.
Account
To place to one's account; to put to the credit of; to assign; - with to.
Account
To value, estimate, or hold in opinion; to judge or consider; to deem.
Accounting that God was able to raise him up.
Account
To recount; to relate.
Account
To render or receive an account or relation of particulars; as, an officer must account with or to the treasurer for money received.
Account
To render an account; to answer in judgment; - with for; as, we must account for the use of our opportunities.
Account
To give a satisfactory reason; to tell the cause of; to explain; - with for; as, idleness accounts for poverty.
Newer was preaching more accounted of than in the sixteenth century.
Account
A formal contractual relationship established to provide for regular banking or brokerage or business services;
He asked to see the executive who handled his account
Account
The act of informing by verbal report;
He heard reports that they were causing trouble
By all accounts they were a happy couple
Account
A record or narrative description of past events;
A history of France
He gave an inaccurate account of the plot to kill the president
The story of exposure to lead
Account
A short account of the news;
The report of his speech
The story was on the 11 o'clock news
The account of his speech that was given on the evening news made the governor furious
Account
A statement of recent transactions and the resulting balance;
They send me an accounting every month
Account
A statement that makes something comprehensible by describing the relevant structure or operation or circumstances etc.;
The explanation was very simple
I expected a brief account
Account
An itemized statement of money owed for goods shipped or services rendered;
He paid his bill and left
Send me an account of what I owe
Account
Grounds;
Don't do it on my account
The paper was rejected on account of its length
He tried to blame the victim but his success on that score was doubtful
Account
Importance or value;
A person of considerable account
He predicted that although it is of small account now it will rapidly increase in importance
Account
The quality of taking advantage;
She turned her writing skills to good account
Account
Be the sole or primary factor in the existence, acquisition, supply, or disposal of something;
Passing grades account for half of the grades given in this exam
Account
Keep an account of
Account
To give an account or representation of in words;
Discreet Italian police described it in a manner typically continental
Account
Furnish a justifying analysis or explanation;
I can't account for the missing money
Account
A report or description of an event or experience.
He gave a detailed account of the incident to the police.
Account
A record of financial transactions.
The company keeps a detailed account of all purchases made.
Account
An arrangement by which a body or institution holds funds on behalf of a client or supplies goods or services to them on credit.
She has a savings account with the local bank.
Account
Consideration of a particular factor when assessing or judging a situation.
The judge took into account the defendant's age and health.
Account
An explanation or justification of one's actions or decisions.
He was called to give an account for his actions.
FAQs
Is accounting related to the process of maintaining and managing accounts?
Yes, accounting is the process, system, or profession of maintaining and managing accounts.
Is an account a detailed record of financial transactions?
Yes, an account is a detailed record of financial transactions.
Is accounting a broader concept compared to an account?
Yes, accounting is broader, encompassing the managing, organizing, and interpreting of multiple accounts.
Can the term "account" be used as both a noun and a verb?
Yes, the term "account" can be used as both a noun and a verb.
Does the term "account" also refer to customer relationships with service providers?
Yes, it can refer to relationships, like having an account with a bank.
Can an account represent a single financial transaction or a series of transactions?
An account can represent either a single financial transaction or a series of transactions.
Does accounting help in analyzing and verifying financial information?
Yes, accounting involves analyzing and verifying financial information.
Can an account give insights into an entity's financial status?
Yes, an account can provide crucial insights into an entity’s financial status.
Is accounting only about numbers and calculations?
While it deals heavily with numbers, accounting also involves interpretation, analysis, and communication of financial information.
Is accounting crucial for business decision-making processes?
Absolutely, accounting plays a pivotal role in business decision-making processes.
Does accounting require professional expertise and knowledge?
Yes, accounting requires specialized knowledge and, often, professional expertise.
Does accounting involve adherence to certain principles and standards?
Yes, accounting involves adherence to various principles and standards to ensure consistency and accuracy.
Is an account essential for maintaining accurate financial information within accounting?
Absolutely, an account is integral in maintaining accurate financial information within accounting.
Is maintaining an account mandatory for individuals and businesses?
While it is essential for businesses, it is also highly beneficial for individuals to maintain accounts.
Can account and accounting be interrelated?
Yes, account and accounting are interrelated as accounts are the basic units managed within the broader field of accounting.
About Author
Written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
