Finance vs. Accounting
Main DifferenceBoth finance and accounting have some similarities as both revolve around the management of assets. However there are many factors that differentiate between these two terms. The main difference between finance and accounting is that finance is the art of allocation of assets and liabilities, it totally deals with money management while accounting is the art of providing financial information about activities of an entity either finance related or cost related.
Difference Between Finance and Accounting
Finance vs. Accounting
Finance deals with the management of assets especially money. That’s why employees working in finance department are responsible for the planning and distribution of business assets. Accounting deals with the presentation of financial information of an organization according to general acceptable accounting principles.
Finance vs. Accounting
Finance deals with decision making and distribution of assets while accounting deals with the economic activities of an organization.
Finance vs. Accounting
The purpose of accounting is to look after the performance of organization while finance forecast the future performance of the business.
Finance vs. Accounting
Statement of comprehensive income, statement of financial position, statement of cash flow, statement of changes in owner equity, etc. are various tools of accounting. Variance analysis, ratio analysis, returns on investment, returns on equity, return on capital employed, risk analysis, performance reports, etc. are various tools of finance.
Finance vs. Accounting
Finance job titles are: financial analysts, loan officers, computer system analyst, accountants and financial managers. Accounting job titles are: accountants, financial analysts, tax consultants/advisors, financial managers, treasurers & controllers, and auditors.
Financenoun
The management of money and other assets.
Accountingverb
present participle of account
Financenoun
The science of management of money and other assets.
Accountingnoun
(accounting) The development and use of a system for recording and analyzing the financial transactions and financial status of a business or other organization.
Financenoun
Monetary resources, especially those of a public entity or a company.
Who's really in charge of a democracy's finances?Accountingnoun
A relaying of events; justification of actions.
He was required to give a thorough accounting of his time.Financenoun
The provision of a loan, payment instalment terms, or similar arrangement, to enable a customer to purchase an item without paying the full amount straight away.
Finance on all our new cars is provided by ABC Loans Ltd.Accountingadjective
Of or relating to accounting.
General accepted accounting principlesFinanceverb
(intransitive) To conduct, or procure money for, financial operations; manage finances.
Accountingnoun
a convincing explanation that reveals basic causes;
he was unable to give a clear accounting for his actionsFinanceverb
To pay ransom.
Accountingnoun
a system that provides quantitative information about finances
Financeverb
(transitive) To manage financially; be financier for; provide or obtain funding for a transaction or undertaking.
His parents financed his college education.He financed his home purchase through a local credit union.Accountingnoun
the occupation of maintaining and auditing records and preparing financial reports for a business
Financeverb
To extort ransom from.
Accountingnoun
a bookkeeper's chronological list of related debits and credits of a business; forms part of a ledger of accounts
Financenoun
the commercial activity of providing funds and capital
Accountingnoun
a statement of recent transactions and the resulting balance;
they send me an accounting every monthFinancenoun
the branch of economics that studies the management of money and other assets
Financenoun
the management of money and credit and banking and investments
Financeverb
obtain or provide money for;
Can we finance the addition to our home?Financeverb
sell or provide on credit
Finance
Finance is the art of dealing with the allocation of assets and liabilities and management of large amount of money. Time value of money is the important factor in finance which states that the purchasing power of one unit of currency can change with the passage of time. Finance can be sub-divide into different categories such as public finance, corporate finance, and personal finance. Personal finance deals with the financial position, adequate protection, tax planning, investment and accumulation goals, retirement planning and estate planning. Corporate finance deals with the means of funding and the capital structure. Public finance deals with the financial matters of state and provinces. In short, finance as a whole deals with Variance analysis, ratio analysis, returns on investment, returns on equity, return on capital employed, risk analysis, and performance reports.
Accounting
Accounting refers to the way of measuring, processing, summarizing and communication of financial information of an entity. Accounting is called the “language of business”. Accounting measures the performances of an organizations and comprise it in such a way that is useful for investors, creditors, management, and regulators. Practitioners of accounting are known as accountant. Accounting can be sub-divided into various categories such as: financial accounting, management accounting, cost accounting, tax accounting, and auditing. Each category of accounting has a specific purpose. Financial accounting deals with preparation of financial statements for external users of information. Management accounting deals with preparation of information and data for internal use, for management. Recoding of financial transaction or bookkeeping system is a most common system of double-entry bookkeeping system in accounting.
