What is the difference between finance and accounts?
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Nagesh Kumar
Home Tutor
Simple sense, 'The Art of Earning' is Finance, and 'The Art of Recording' the Financial Transactions / Activities is called as Accounting
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Aruna Nayak
Accounting is the process of creating and managing financial statements which record the day to day transactions of the business. Finance has a broader scope and is responsible for initiating transactions to aid in cash, investment.
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Accounts is recording and portrayal of financial information. Finance includes interpretations and reaching a definite conclusion and plan of action with the financial accounts.
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M Ashok .
Chartered Accountant and Chartered Financial Analyst, Expert in Accounting, Costing and Financial Management
Finance deals with valuation, capital structure, investments, project evaluation etc. Accounts deals with book keeping, preparing ledgers, trial balance and final accounts in accordance with accounting standards. Accounts is a process done through computerised packages whereas finance largely involves...
read more Finance deals with valuation, capital structure, investments, project evaluation etc. Accounts deals with book keeping, preparing ledgers, trial balance and final accounts in accordance with accounting standards. Accounts is a process done through computerised packages whereas finance largely involves working on spreadsheets and power point presentations. read less
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Esha Bhatia
Finance Post Graduate having a zeal to enlighten the future
Accounts is recording financial information, finance is analyzing the same and getting a meaning out of it. Strategy for future action plans depends on Finance while recording accurate information and its availability depends on accounts
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Most of my friends have very well defined accounts and finance. Let me give very simple example: Say Company A makes 1 crore profit and Company B make 10 crore profit. This profit results are given by accounting rules. Now if i ask u to choose which company looks good to u. Primafacie you may say Company...
read more Most of my friends have very well defined accounts and finance. Let me give very simple example: Say Company A makes 1 crore profit and Company B make 10 crore profit. This profit results are given by accounting rules. Now if i ask u to choose which company looks good to u. Primafacie you may say Company B looks more good. But if you further analyse and ask the question on how much sale or assets was this profit generated. let say company A created 1 crore profit on 10 cr sale which is 10% profit. Whereas company B created10 cr profit on 1000cr sale which means 1% profit. so now your decision changes. Company A looks good. we are analyzing the company using ratio analysis. Like this in finance we have various techniques to interpret,analyze and make decision. Accounts uses accounting rules and generates statements like profit and loss account, balance sheet,cash flow statement. Finance applies various techniques like ratio(as above) to make decision. read less
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Finance is more about decision related to managing funds(money), Accounting is related to recording movement of funds & all other monetary transactions and reporting.
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Bfsiacademy.com
SKills for Banking | Financial Services| Insurance
Accounting records business information like sales , share holding patterns , Expenses etc in prescribed format. Finance interprets this information and uses it for analysis and decision making in terms of Financial position , investments etc. Finance analysis starts where accounting ends.
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Finance usually deals with management of funds, cash flows, treasury, budgets, ratios analysis, investments etc whereas accounts deals with bookkeeping i.e. preparation and maintenance of books of accounts starting from journal entries to finalization of accounts in the form of a profit and loss account...
read more Finance usually deals with management of funds, cash flows, treasury, budgets, ratios analysis, investments etc whereas accounts deals with bookkeeping i.e. preparation and maintenance of books of accounts starting from journal entries to finalization of accounts in the form of a profit and loss account and balance sheet. read less
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Umasankar Natarajan
Software Professional Trainer with 26+ years of Experience in Software Design and Development
The main difference between accounting and finance concerns time. Time plays a more sophisticated role in finance than in accounting Accounting is an essential part of finance. It is a sub-function of finance. Accounting produces information about the operations of a business. Accounting is a...
read more The main difference between accounting and finance concerns time. Time plays a more sophisticated role in finance than in accounting Accounting is an essential part of finance. It is a sub-function of finance. Accounting produces information about the operations of a business. Accounting is a set of techniques to record, organise and present in a useful manner monetary information about the activity of the firm. read less
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