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What are the main differences between Finance and Accounts?

Question:

What are the main differences between Finance and Accounts?

Accounting versus Finance:

Finance and accounting are examples of courses studied in tertiary institutions. The former focuses on the management of money for successful investments while the latter records and maintains business transactions.

Answer and Explanation:

The main differences between finance and accounting include

  • Accounting is concerned with the recording of daily transactions in a business. In other words, it records the cash flows; in and out of the business in order to enhance accountability. Notably, accounting is a subdivision of finance. On the other hand, finance is a broad concept referring to the management of funds in a business to promote its growth.
  • Accounting primarily focuses on reporting records. The reporting is done in compliance with the accounting laws and standards. Conversely, finance looks forwards towards growing the available funds by embracing strategies such as mitigating losses.
  • The main goals of finance include decision making, managing and controlling assets and liabilities of a business for purposes of investment and divestment. On the other hand, accounting collects, assembles, and reports financial information to the management and other stakeholders with the help of accounting tools like financial statements.

Learn more about this topic:

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What Is Financing? - Definition & Types

from Corporate Finance: Help & Review

Chapter 8 / Lesson 7
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