How Accounting and Finance Work Together

To outsiders, accounting and finance may as well be synonyms.  After all, accounts is finance which equals money.  Decision makers in organisations of all sizes simply don’t have the luxury of this misconception. Instead, they need to be aware of the clear differences between the two disciplines, where they cross over and where they differ. 

Dealing with the Past – Accountancy

Accountancy is all about record keeping of expenses and income made.  A trained and qualified accountant is not only able to keep the books of a company (a role largely more suitable for a less highly paid bookkeeper) but is also able to advise on the payment of taxes as well as provide an overall assessment of the performance of the firm.

In short, accountancy is about where all the money went.  In terms of seniority, accounts is generally seen as a subset of finance which provides the essential information that financial managers need in order to make decisions about the future.

Into the Future – Finance

Finance is focussed more on the current and future management of money within the organization.  Deciding how to invest in assets and stocks, and projecting the expected revenues are all responsibilities of the financial officer or officers of an organisation. 

Finance itself is a huge field covering a variety of field such as investments, loans, stocks and many more, of which accounting is one.  Nevertheless, the results from the actions taken by a finance team must be recorded and passed on accurately to the accounting team who will appraise the results for the next report to inform future decisions.

What a Financial Manager Needs to Know About Accounting

To perform their job correctly, a financial manager needs a basic understanding of how accounts are prepared and the ability to read the reports provided to them by the accounting team.  While the financial manager does not need to know the particulars of say, tax, they nevertheless need to have a basic understanding of how such things are likely to impact future plans. 

LEAVE A REPLY

BLOG CATEGORIES

MOST POPULAR

July Newsletter 4 2022: New Horticultural Horizons Approach!

Waiting List Ready for the Revised RHS Syllabus Courses! WAITING LIST Level 2 Certificate – Revised RHS Syllabus starting from September 2022 The RHS is releasing amended versions of their Level 2 Certificate in September 2022 and we are waiting for the new syllabus. The Level 3 Certificate will be available in September 2023. In the meantime, you can register

Read More »

July Newsletter 3: It’s all going swimmingly!

Aqua Fitness 100 Hours Certificate Course A comprehensive Home Study course in water fitness! This distance learning course is perfect for anyone interested in water fitness and safety as well as teaching some of the essential elements such as aquafitness equipment and facilities, hydrostatic and hydrodynamic principles, and program design and facilitating. Aqua Fitness activities

Read More »

July Newsletter 1 2022: Go Viral (on the internet) today

Understand how the mind works to promote your business and generate sales! This is a broad-based Psychological Mindset and Marketing online qualification designed to combine the disciplines of psychology, marketing and business skills in order to help us understand how the role of Mindsets Mindsets helps us recognise opportunities, deal with situations:- making us aware

Read More »

June Newsletter 4 2022: Is it smaller than a loaf of bread?

Nanotechnology 100 Hours Certificate Course Learn about Nanotechnology and understand how it can be applied in many industries Nanoscience is the study of structures and molecules on the very small scales of nanometres. The technology that utilises it in practical applications, such as devices, is called nanotechnology. This course will help you understand how nanotechnology

Read More »

Freedom to Learn

Unsurprisingly, one of the most critical skills that we can understand in life is how to learn. Or, more accurately, how we learn because we are all very different and at various points in our journey to understanding how we work best. This series is going to be an exploration of ideas that may prove

Read More »

SIGNUP FOR OUR NEWSLETTER

Scroll to Top

REQUEST A CALLBACK

To speak to one of our course advisors, please enter your name and phone number below and click the "Please Call Me" button. We will call you back as soon as possible!

By submitting this form, I provide my consent to ADL to contact me via email or telephone, regarding the course I selected. All information provided is protected in conformity with our Privacy Policy.

CONTACT US

required fields are marked with *

By submitting this form, I provide my consent to ADL to contact me via email or telephone, regarding the course I selected. All information provided is protected in conformity with our Privacy Policy.