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Difference between Accounts and Finance

Asked by: Gorakh.sharma | Member Since Dec-2006 | Asked on: Dec 28th, 2006

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shailendra

Answered On : Dec 28th, 2006

ACCOUNT is the detailed record of a particular asset, liability, owners' equity, revenue or expense.

 

FINANCIAL ACCOUNTING is the area of accounting concerned with reporting financial information to interested external parties

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mohan

Answered On : Jan 3rd, 2007

Accounts is material stock statements ant material Accounting

Finance is Distribute the cost

  
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venkat

Answered On : Jan 22nd, 2007

Accounting is concerned with the recording of transaction in a systematic manner.As such, it is concerned with recording the business event in a monetary form whether the cash is involved or not at the time of recording the business transaction.


Example: Consider a situation where a firm has bought material for 50,000 on 01.01.2007. This amount is to be paid after 30 days from the date of purchase to the supplier on 31.01.2007. In this though money is not spent on 01.01.2007, the transaction is recorded in the books of accounts.


Accounting functionalities involve,

1.Recording of transactions (Online transactions, Journal vouchers)
2.Checking the prime books (Cash book, Journals and Bank book)
3.Generating financial statements (P&L and B/S).

Finance is concerned with raising of funds to meet the various cash flow needs of the organization. Finance functions starts from gathering the cash flow information from the accounting records and also prepare projections of cash flow. Finance activities are concerned with preparing budgets and compare the same with the actual results for finding variances. Here, the sources and application of funds are prepared for both the budgets and actual scenarios.


Finance functionalities involve,

1. Bank co-ordination,
2. Sourcing and Application of funds,
3. Preparing Budgets and
4. MIS and EIS reporting.

Finance activities will encompass through the Accounting and Operations aspects of an organization.

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Ammy

Answered On : Feb 9th, 2007

Accounts have to do with the daily records of financial activities of an organization while Finance is the management of funds ranging from the sourcing for funds to the usage of funds and also control of cash outflows.

  
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UshaRani.R

Answered On : Mar 1st, 2007

Accounts is mainly for outsiders i.e.shareholders, creditors,debtors and for borrowing entities.It is prepared mainly for raising funds and for tax purpose. Finance is mainly prepared for management purpose. It is useful tool for management at time of preparing budget,cost allocation,cost reduction,etc. It is for managing the funds of the company - Source and Application.

  
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sreenivaz

Answered On : Mar 20th, 2007

Acconts 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.

  
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koppuladinesh

Answered On : Nov 18th, 2008

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Acounting is classyfying, ascertaing and summaringthe transactions.

  
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panks8787

Answered On : Sep 7th, 2010

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The main difference between accounts and finance is the accounts calculate the cash flow on the basis of accrual basis, means the
mercantile basis. Finance consider only when they are received.
Accounts is the only input to finance

  
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Y M Shrinivas

Answered On : Jul 18th, 2011

Accounts is maintaining day to day transactions and Finance is managing Fund flow. Both needs to report day to day dealings to the Management for betterment & future course of action. Both are interlinked like two pillars of cart.

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Y M Shrinivas

Answered On : Jul 18th, 2011

Accounts is recording day to day transactions & Finance is managing Fund flow. Both are interdependent and has broader meaning. Accounts and Finance are like two wheels of the cart.

  
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pm

Answered On : Oct 19th, 2011

Accounting: Accountant's (sometimes called: Controller)
primary function is to develop and provide data measuring
the performance of the firm, assessing its financial
position, and paying taxes. The accountant is responsible
for preparing financial statements such as the income
statement, balance sheets, and cash flows. It is normally
passive work, in the sense that, the work has a very
independent nature to it such as preparing forms and
financial statements. It is a good job for people who want
to work independently and are very organized (this is only
a very brief description, if you are interested in
accounting, consult your accounting instructor for more
information).

Finance: The financial manager or consultant places primary emphasis on decision making. It uses the financial statements prepared by accountants to make decisions about the firm's financial condition and to advise others about possible losses and profits. In some cases, finance is more a type of leadership position. A financial manager has to deal not only with finance, but also with economics, accounting, statistics, math, and management. For example, people working with stocks and bonds have to understand and analyze how the underlying companies are performing. How a
given company is going to perform during recession? Should they sell or buy stocks or bonds. How a decrease in the interest rate in England may affect the projects a company has in that country. Finance also deals a lot with risk.

Derivative securities (options, futures, swaps, etc) are
used to hedge against possible increase in risk. Risk
managers are in great demand everywhere. Most finance
majors find jobs in banks and other financial institutions,
government, real estate, consultant companies, insurance,
investment companies, stock market exchanges, fundraising, and any firm that needs someone to make financial decisions

  
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balaji

Answered On : Oct 24th, 2011

Financial accounts tells about financial position and financial performance of the company, hence the company publish the quarterly and annually reports to the shareholders and to the public

Finance is science, it deals with the money, risk, and the time.

  
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P.GANAPATHI

Answered On : Oct 29th, 2011

Accounting: Accountants (sometimes called: Controller) primary function is to develop and provide data measuring the performance of the firm, assessing its financial position, and paying taxes. The accountant is responsible for preparing financial statements such as the income statement, balance sheets, and cash flows.

Finance:The financial manager places primary emphasis on decision making. It uses the financial statements prepared by accountants to make decisions about the firms financial condition and to advise others about possible losses and profits.

  
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NareN

Answered On : Nov 6th, 2011

Finance: Finance is the money(funds.....)management.
How to use ,on which purpose

Accounting:Account is the detailed record of a particular asset, liability, owners' equity, revenue or expense.

  
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XYZ

Answered On : Nov 21st, 2011

The major difference between Accounts and Finance is.....

Accounts: The accounting is the entry of the financials transactions of the company or firm that include entry of the ledger accounts, preparation of the trial balances and preparation of the final statement.

The costing is one of the branch of the accounting that is different from general entries of the financial transaction that involved with preparation of the budget of the company, find out and preparation of the product wise costing that is useful for finding the manufacturing cost and each product cost.

Finance: Finance the term itself suggesting that to make available funds for the companies various operation like its day to day activities , its future operation and for the expansion.

The finance can also come after the accounting when the accounting entry done a person be able to analyze the financial condition and make a judgment for its future operations and able to finance its funds.

  
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vijen

Answered On : Dec 23rd, 2011

In simple language accounts is recording, classification, summarizing of all types of money transactions.

Finance work is taking important decision on the basis of accounts.

  
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subramani

Answered On : Feb 14th, 2012

Accounts is debit, credit and Assets & Liability, income and Expenses it should be included finance is nothing but only for future element it should be included for the data.

  
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harish babu

Answered On : May 14th, 2012

Finance is part of accounts . And finance is raising funds to meet various cash flow needs of an organization with the help of maintaining accounting records...

Accounts is recording all the transactions of an organization to know proper details about the organization like profits , losses, financial position and equity etc....

  
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Ahsan A. Wahab

Answered On : Jul 13th, 2012

accounting is a systematic way of recording the day to day business activities. finance can be simply defined as the management of cash flow.

  
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Nishanth Loyal

Answered On : Sep 12th, 2012

Accounting means recording the cash transactions of the business by using generally accepted accounting principles and thereby finding that is the company earning profit or incurring loss as well as the financial position of the companies during the year. It is prepared for the tax payment object.

But finance is a broader concept. it is involved to the following objects.

1. How to acquire funds for running business and how much to acquire.(source of fund)
2. Where to invest in these funds.(Application of fund)
3. Making the Budget.
4. Controlling the budget.
5. Preparing the Project if any.
6. Financial Analysis(ratio analysis and comparative analysis) and so on

  
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sai

Answered On : Dec 31st, 2012

Accounting is a art of classifying records summarizing in significant manner

  
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Reazul

Answered On : Apr 7th, 2013

Accounts is the life of the company. and Finance is the life of the accounts.

  
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amit

Answered On : Apr 11th, 2013

wanted to know about tds structure

  
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lakshmi

Answered On : Apr 15th, 2013

accounting:Is an art of recording classifying and summarizing the business activities.

Finance" finance is nothing but cash.every business should maintain only cash.

  
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Reza Mahmud Mithu

Answered On : Apr 29th, 2013

Accounts means information system but Finance means play with money

  
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