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Accounting is concerned with Recording & Reconciliation of Day to Day Activities of Business.
Finance is concerned with Long Term Planning & Managing Business / Assets.
Financial: planning and implementation. Accounting : entry and detail
Accounting , normally relates to tracking and documenting the use of assets, while the finance function are relates to ensuring the most effective use of cash and to ensuring it is there when needed.
One difference is particularly related with the treatment of funds and second one is related with decision making. In accounting, funds (Income & Expense) is totally based on accrual base. That is, expenses are acknowledged only when it occurs and revenue is acknowledged at the time of sale but in finance it is based purely on cash flows.
The main aim of accounting is to collect data and give a picture of financial information’s, we can say that it is based on previous data but in finance we must forecast the future to make strong financial strategies.
At the end, Finance starts where accounting ends.
Finance is the science of planning the distribution of a business’ assets. This includes the coordination of capital investments and debt backed investments for the purpose of improving the value of the business. Accounting is the art of recording and reporting financial transactions concerned with tracking and reporting the financial transactions of a business. Those in the Accounting field are responsible for managing the general ledger, cash flow management, collections, recognising revenue, analysing profitability, reporting earnings, managing debt, and paying taxes.
Accounting can be broadly defined as the preparation, evaluation and management of financial records, while finance is best described as the study and management of investments. Accountants are therefore more concerned with budgets, audits, taxes and business financial operations, while financial analysts are typically experts in stocks, bonds and various other financial products available to corporate or individual investors.
Key difference: Accounting is the process of creating and managing financial statements which record the day to day transactions of the business. Finance has a broader scope and is responsible for initiating transactions to aid in cash, investment and other working capital management.
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.
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, on the other hand, is the efficient and productive management of assets and liabilities based on existing information.
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. Also, managerial finance involves the actual management of the firm, as well as profiling and managing project risks.
