How Different Are The Functions Of Accounting & Finance?
The definitions of finance, accounting and economics often get confused because each discipline handles money. To understand how these areas are different, it is necessary to examine the principles, procedures and business areas they cover. Accounting, economics and finance mainly differ in the sense that, while the economy deals with assumptions, accounting and finance mainly deal with facts.
Finance is concerned with the control and management of assets and investments, the study of money and business, or management, finances, which is the management of the financial company itself. Finance examines how the finances are handled and manage the money in situations like borrowing. Personal finances or the finances of families and individuals, has to do with matters such as taxes, credit cards, household expenses and inheritances. Finance are essentially a subset of economics that considers the risks, time and money at hand involved in lending and savings funds. Seen mainly as the task of Accountants, there are many such careers available all over the Country with a renowned focus of experts based in the South West. The best Tax Accountants in Exeter, the best Chartered Accountants in Exeter can all be found within one square mile of the City Centre.
The Economy, can be defined as the study of the management of goods and services. This can include the production and of course consumption of goods and services and the factors affecting them.Seeks to explain how economies work and interact with each other in order to improve how business function. Economy can be divided into two areas of study. Microeconomics focuses on the firm level and study the behavior and the effect on the economy of businesses and individual consumers. Macroeconomics is the analyses of the entire economy which includes factors such as productivity and employment. Accounting is the preparation or maintenance of records of accounts, including measurement and interpretation of financial statements. Essentially, the accounting records and evaluates a business or financial activities of the individual. Financial transactions, such as income, wages and money spent and earned, is managed through the accounts. Accounting can be divided into several categories such as management, accounting and financial reporting of taxes.Accounting provides information, such as information variable cost that can be used in economic analyzes.
While the accounting, economics and finance are different, it is important to remember that these can not work independently. As noted previously, finance can be seen as a subset of economics that focuses on information related to money, while the needs of financial management, accounting generates information. The principles of each are different Finance makes decisions according to information recorded, economics and accounting analyzes these decisions is the actual records of information. Finally, while the economy is based on assumptions, finance and accounting are based on facts.