People sometimes find it difficult to understand technical business terms such as Finance and Accounting. Because such people either have less exposure in the world of business or are new to this. Therefore, we are here to clarify these dilemmas’.
To start with, lets talk about Finance and Accounting. Firstly, What is the real difference between Finance and Accounting ? Though they are interdependent, Both of them are different. These are two of the most common options, and each offers a rewarding career path for unique reasons. In a very simple language, Accounts deals with past records and Finance deals with future investments.
Basic Difference between Finance and Accounting…
Accounting is the recording, maintaining, and reporting of a company’s financial records. So, Accounting professionals work for individuals, inhouse at corporations, or on behalf of other businesses at a public accounting firm. Whereas, Finance is the management of money and investments for individuals, corporations, and governments. Finance professionals work in careers such as investment banking wealth management, and financial planning and analysis.
Financial professionals are responsible for ensuring that there is enough funding (capital) for the needs of the situation. And They also ensure that the funds are distributed as optimally as possible. They may work on behalf of individuals or businesses. Their job is to create value by managing capital in a way that earns higher than expected risk-adjusted returns. The accounting professionals are responsible for ensuring that all financial transactions are correctly entered into the general ledger, with accurate financial statements.
Both are inter-dependent…
To be precise accounts are somewhat dependent on Finance. Hence, Without proper stability of finance or even growth or declination of the same, accounts wont come into action. An account professional is always accountable, detail oriented and have thinking based on rules which is concerned with accuracy and risk management.
Above all, Accounts need accuracy. Because Details can change the whole algorithm of accounts if not taken care of. It has nothing to do with hit and try instead it needs accuracy.
In Finance, every step is analyzed before it is executed. Hence, being analytical is very important to be a professional in this field. Also, It is important to be inquisitive. In conclusion, The person should posses business development skills and problem solving management.
Both of these fields have equal opportunities and importance. Accounting has a relatively narrow focus, while finance is wider-ranging. Covering an array of specializations in the world of business, economics and banking career potential in terms of accounts can be Accountant (trainee, public, professional and certified), Actuary, Auditor, Bookkeeper, Budget analyst, Credit controller, Financial consultant, Financial examiner, Forensic accountant, Payroll administrator, Risk assessor, Tax advisor, Treasurer. Considering Finance? Then, the options can be Commercial banker, Financial consultant, Financial manager, Financial trader, Hedge fund manager, Insurance officer, Investment banker, Quant specialist.
Finally highlighting the salary potential, accounting is 129th in Pay Scale’s ranking of Majors by salary potential and Finance is 63rd in Pay Scale’s ranking of Majors by Salary Potential.
So, Accounting is a subset of Finance and currently in this situation the focus should be on both. In addition, The COVID-19 outbreak has already had a significant effect on the economies of affected countries and international financial markets. As the companies in India approach their yearend, there is an urgent need to evaluate the impacts of the outbreak on their accounting and financial reporting. In fact, The financial reporting impacts of the COVID -19 outbreak will depend on facts and circumstances, including the degree to which a company’s operations are exposed to the impacts of the outbreak.