Accounting and Finance – Course, Journal, Difference, Salary
Over the years, very little people have been clearly able to distinguish between accounting and finance. This is due to the fact they both deal with money and financial transactions and this makes them lumped together. It is however good to note that in their similarity, there exist clear lines of differentiation with respect to their meaning and scope, job opportunities etc. We shall observe some of the differences between accounting and finance below.
Accounting and Finance Difference
Accounting deals with the development and use of a particular system (computerized or written) for recording and analyzing the financial transactions and financial status of a business or organization.
From the definition above, it is clear that accounting is concerned with the tracking and reporting financial transactions of a business. In accounting, there is a responsibility for managing the legers, management of cash entry and exit from the business, collection of money, recording revenue, checking profitability, recording earnings, debt management and tax payment. Those involved in accounting perform the above roles by making use of a standard set of laid down principles called the Generally Accepted Accounting Principles (GAAP). Accounting deals with recording past financial transactions of an organization. It deals more with accurately recording and reporting past financial transactions and ensuring compliance with laws and standards.
It is also safe to say accounting deals with the day-to-day management of finances within organisations. These roles of managing finances consist of roles like recording transactions, producing financial statements, and analysing and reporting on the prepared financial statements. Accountants are involved with a set of processes, that range from double-entry bookkeeping to drafting tax returns.
Finance is simply defined as the management of money and other assets.
From the definition above, we can clearly state that the finance is concerned with the planning the effective distribution of the assets belonging to a business or organization. This planning includes the control of capital investments and debt backed investment for the sole purpose of getting more value from the business. Finance deals with planning the entry and exit strategy for investors of the business. Finance deals with planning future financial transactions of the organization. It deals with future planning, expanding your money and reduction of losses to the minimum.
Finance can also be inferred to deal with focuses on the management of assets, investments and liabilities. It focuses more broadly on whole capital markets, rather than single organisations. It overlaps with economics, business and banking, using theoretical knowledge to advise on decision-making about choosing securities for investment portfolios.
Without saying much, it clear that the only similarity between accounting and finance is that they both involve the management of assets. They may often be grouped together but they are different aspects that require specifically different skill sets.
Accounting and Finance Courses
From the definitions, it is clear that accounting and finance are different aspects of a similar concept; money. It is therefore expected that would have different roles and functions in the different organisations where their services are required.
Accounting as a profession will equip you to become an) Financial Reporting Accountants, Auditors, Bookkeepers, Accounts Receivable Clerks, Accounts Payable Clerks, Controllers, Treasurers, and Tax Accountants, Controller, Tax Manager, Fund Accountant, Valuation Analyst or Financial Reporting Accountant, Tax Accountant, a Bookkeeper, Treasurer or Auditor. It is however important to note that all these people will in one way or the other report to the Chief Financial Officer.
Finance as a profession will equip you to become a(n) Chief Financial Officer, Financial Analysts, Financial Managers, Budget Analysts, Budget Managers.
Due to the differences in the aspects dealt with accounting and finance will produce workers with a different skill set.
Accounting will equip you with skills such as, timeliness, accurate recording of information, preparation of different types of financial statements, analysis of financial statements, etc.
Finance will equip you with skills such as planning, distribution and coordination of assets, projection into business development.
Despite the differences between accounting and finance, it is however clear that they are both needed by businesses and organisations. This makes it difficult to pick anyone as more important than the other.