What's the Difference Between Auditing & Accounting ?

Auditing and accounting are two different financial processes that each serve particular purposes for small businesses. In financial terms, accounting encompasses the day-to-day management of organizational finances, including staff payroll and the number of items bought and sold..Auditing is an independent review of a business's accounting practices through internal review, an outside expert or a government entity.

The practice of accounting is comprised of the daily analysis, tracking and recording of an organization's finances. This process includes consideration of simple balances such as costs owed to suppliers, pending profits due from customers as well as standard operational costs. Complex accounting metrics allow businesses to gauge their profitability and predict future sales forecasts. Accounting analysis also allows small businesses to determine cash flow for potential expansion.