Differentiate between finance and accounting.

The major differences between finance and accounting are as follows −

Finance

• It is the science of planning the distribution of assets within the company.

• Its main objective is to study capital market and funds of business for making future strategies.

• The tools for accounting are risk analysis, capital budgeting, ratio analysis, etc.

• The branches of finance are private finance, public finance, corporate finance.

• Finance is not a part of accounting.

• Career for finance are investment banking, corporate finance, equity research, private equity, risk management, quantitative analysis, project finance, technical analysis.

• In finance, success mainly depends on technical skills.

• Work pressure is an intrinsic part of finance.

Accounting

• It is an art of summarising reporting and recording the finance related transactions.

• Its main objective is to provide information regarding the solvency status of the company to the financial statement.

• The tools of accounting are income statement, cash flow statement, balance sheet etc.

• The branches of accounting are financial accounting, management accounting, cost accounting etc.

• Accounting is a part of finance.

• The career options for accounting are forensic accounting, public accounting, financial accounting, auditing, government accounting etc.

• There is work life balance when it comes to accounting.

• It has very narrow domain.