Accounting vs Finance

Finance vs Accounting

If you aren’t a commerce student, or you haven’t stepped in the business world yet, then chances are you are still confused with the question that i am going to ask! What is the real difference between Finance and Accounting ? 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 and layman language, Accounts deals with past records and Finance deals with future investments. Accounting is the recording, maintaining, and reporting of a company’s financial records. 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, Whether these professionals work on behalf of individuals or businesses, they are responsible for ensuring that there is adequate funding (capital) for the needs of the situation and that the funds are allocated as optimally as possible. Their job is to create value by managing capital in a way that earns higher than expected risk-adjusted returns. The accounting professionals These professionals are responsible for ensuring that all financial transactions are correctly entered into the general ledger, that account balances are correct, and that financial statements are accurate. To be precise accounts are somewhat dependent on Finance without proper stability of finance or even growth or declination of the same, accounts wont come into action. To be an Account professional, a person should be accountable, detail oriented as details can change the whole algorithm of accounts if not taken care of, have rules based thinking, concerned with accuracy and risk management as accounts has nothing to do with hit and try instead it needs accuracy and if a mistake happens a proper risk managing mind to undo the mishap. Talking about Finance to be a professional in this field you need to be analytical because every step in finance needs to be analysed before it is even taken, inquisitive, thinks about scenarios, 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, 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. 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.

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