Differentiate between finance and accounting.

Banking & FinanceManagementCompanies/Organisations

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.

raja
Published on 25-Jul-2020 06:53:26
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