They are the tow basic functions in any business Finance and accounting that provide framework to financial activities, management of money & decision making. They work together to maintain a well-functioning, profitable and sustainable organisation.
Finance
Finance: science of money management It may include:
Financial planning: devising plans to achieve long term financial objectives
Investment management: Invest in where to get returns which are enough for survive.
Payments Risk Management: Identify and manage financial risks you may face
Capital Budgeting– Ascertainment of Financing Decision making in relation to Capital investment proposals
Fundamental analysis overview of financials and the application through metrics aiding in better understanding.
Accounting
Accounting is bookkeeping to keep track of financial transactions and communicate these results in a generic format for purposes such as decision making. It involves:
Financial accounting: The support of tasks, which contribute to financial statements (e.g., income statement recording and balance sheet compilation.
Managerial accounting: On-going quick change dimension financial data help paint a picture for managers within the organizations.
Cost accounting: Let an organization know the amount it cost to produces goods or services.
Accounting (e.g., tax accounting: according to the different tax laws and regulations governing each jurisdiction)
Auditing: assessing financial statements in order to make sure that the information they contain is true.
Relationship between Finance and Accounting
Financing and accounting has a very close relation. Accountants provide the financials that finance people use to make proper decisions. On the other hand finance professionals make financial goals & strategies accountants have to implement for supporting those objectives.
Finance and accounting are the main two renowned pillars
Finance and accounting are the backbone of any company. They can help to:
Boost efficiency of decisions: By generating on time information which has to be sufficient for unambiguous financial statements.
An improvement to the company-wide financial performance over time — identifying where improvements can be made and related cost cutting.
Attract investors: To prove that this organization is in a good financial situation and it will expand.
Have a Backup Plan — Recognize and mitigate threats not related to money.
Observe: Adhere to accounting principles and tax regulation.
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