Difference between Finance and Accounts

Question

What are the basic differences between Finance and Accounts?

Answer 1

Account is the explained record of a specific asset, owners' equity, liability, revenue or expense.

Financial Accounting is the region of accounting concerned with the reporting financial information to be interested in external parties.

Accounting is mainly concerned with the recording of transaction in a systematic way. As such, this is concerned with the recording of business event in a monetary form whether the cash is included or not at the time of recording business transaction.

Example: Let’s consider a condition where a firm has bought material for 50,000 on 01.01.2008. This amount is to be paid subsequent to 30 days from the date of purchase to the supplier on 31.01.2008. In this although money is not spent on 01.01.2008, the transaction is recorded in the books of accounts.

The Accounting functionalities comprise:

A) Recording of transactions (that is online transactions, Journal vouchers)
B) Checking the prime books (that is, Journals, Cash book and Bank book) 
C) Producing financial statements (P&L and B/S).

Finance is mostly concerned with rising of funds to meet the different cash flow which requires of the organization. Finance functions begin from gathering the cash flow information from accounting records and as well prepare projections of cash flow. Finance actions are concerned with making budgets and compare the similar with the real results for finding variances.
Here, the application of funds and sources are made for both the budgets and real scenarios.

Finance functionalities include:

•    Bank co-ordination, 
•    Sourcing and Application of funds, 
•    Preparing Budgets and 
•    MIS and EIS reporting.

The finance activities will include via the Accounting and Operations aspects of an association.