The following is the distinction between Accounts & Finance:
1) Score keeping Vs Value Maximising:
Accounting is concerned with score keeping, whereas finance is aimed at value maximising. The primary objective of accounting is to measure the performance of the firm, assess its financial condition, and determine the base for tax payment. The principal goal of financial management is to create shareholder value by investing in positive net present value projects and minimising the cost of financing. Of course, financial decision making require considerable inputs from accounting. An accountant's role is to provide consistently developed and easily interpreted data about the firm's past, present, and future operations. The financial manager uses these data, either in raw form or after certain adjustments and analyses, as an important input to the decision making process".
2) Accrual Method vs Cash Flow Method:
The accountant prepares the accounting reports based on the accrual method which recognises revenues when the sale occurs (irrespective of whether the cash is realised immediately or not) and matches expenses to sales (irrespective of whether cash is paid or not). The focus of the finance manager, however, is on cash flows. He is concerned about the magnitude, timing, and risk of cash flows as these are the fundamental determinants of values.
3) Certainty vs Uncertainty:
Accounting deals primarily with the past. It records what has happened. Hence it is relatively more objective and certain. Finance is concerned mainly with the future. It involves decision making under imprefect information and uncertainty. Hence it is characterised by a higher degree of subjectivity.
Account is a record or statement of recent transactions and resulting balance. Finance is the management of money and credit and banking and investments
Of course there is a big difference between accounts and finance. when we talk about accounts its more about recording and judging the results from every possible angle. and when its finance it talks about from where to get money, what should be the investment ratio and what should be given to the shareholders as dividend. hope i ve answered u if u still ve some query kindly drop a mail vashishtha.richa@gmail.com
what is difference between accounts and engineering
There in no difference between an accounts officer and an accountant other than the job level. They both provide account management services.
pledging is a
Account is a record or statement of recent transactions and resulting balance. Finance is the management of money and credit and banking and investments
Of course there is a big difference between accounts and finance. when we talk about accounts its more about recording and judging the results from every possible angle. and when its finance it talks about from where to get money, what should be the investment ratio and what should be given to the shareholders as dividend. hope i ve answered u if u still ve some query kindly drop a mail vashishtha.richa@gmail.com
What is the difference between An Accountant and a Finance officer?
An accountant is a finance professional who can work for a company or can set up an individual practice to provide accounting services. An accounts officer is a person who is in charge of accounts of a particular company.
A finance manager is often over a finance department for a company. They can also manage finances for an individual. An accountant prepares reports and does the actual work of payroll, purchase orders, accounts receivable, accounts payable and more. An accountant may work alongside or under a finance manager.
what is difference between accounts and engineering
home minister and finance minister are same there is no any difference between them.....
Accounts have to do with the daily records of financial activities of an organization. Accounts are managerial level it includes recording classifing summerising the results to the stake holders of the company. Finance deals with the admisterial level it includes various decisions like procurement of funds invest them in proper manner and distributing of funds to interested parties. Thus when compare the scope the scope of finance is greate than accounts. Accounts is the parts of finance whereas finance means the analysis of cost and fund for future requirements.
The difference between the commercial banks and micro finance banks is in their functions and ability. The main difference is in the lending limits with micro finance banks having lower limits.
The key difference between a finance lease and an operating lease is whether the lessor (the legal owner who rents out the assets) or lessee (who uses the asset) takes on the risks of ownership of the leased assets. The classification of a lease (as an operating or finance lease) also affects how it is reported in the accounts. The differentiation is mostly important for accounting , taxation and financial reporting purposes.
The key difference between a finance lease and an operating lease is whether the lessor (the legal owner who rents out the assets) or lessee (who uses the asset) takes on the risks of ownership of the leased assets. The classification of a lease (as an operating or finance lease) also affects how it is reported in the accounts. The differentiation is mostly important for accounting , taxation and financial reporting purposes.
NO