Accountancy and Finance: Accountancy vs Finance

Arjun EP

Published on: December 16, 2020

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History of Accounting and Finance

Luca Pacioli is known as father of accounting; he wrote the first published accounting work in 1494 AD.

Eugene F. Fama is known as father of modern finance.

He is the most cited researchers in economics.

His research is well known in both the academic and investment sectors.

Finance was the part of economics till beginning of 19^th century.

At the beginning of 19^th century, finance came out as separate subject or field.

In this way, accountancy is older than finance for study.

We study theoretical as well as practical knowledge in both accountancy and finance.

The main work of accountancy is to record monetary transactions.

These transactions are recorded in financial statements like journal entries, ledger, trial balance, income statement and balance sheet etc.

Finance examines and analyses these financial statements to take rational financial decisions.

Here, Accountancy and Finance are interrelated.

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Click on link for YouTube videos:
Accounting Equation	http://tiny.cc/c89jkz
Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance & Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
Final Account: Class 11	http://tiny.cc/y89jkz
Adjustment In Final Account	http://tiny.cc/keakkz
Capital and Revenue	http://tiny.cc/peakkz
Single Entry System	http://tiny.cc/n19jkz
Non-Profit Organization (Non-Trading Concern)	http://tiny.cc/j09jkz
Government Accounting	http://tiny.cc/hcakkz
Goswara Voucher (Journal Voucher)	http://tiny.cc/hcakkz

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Basics of Accounting and Finance

If you want to study accounting, you can expect to take classes in accounting practices and accounting ethics, business law, tax law and accounting theory.

If you want to study finance, you will likely spend some time on macroeconomics and international finance in your classes as well as on financial engineering and corporate finance.

Career Options in Accounting and Finance

There are different options for accounting like bookkeeper, accountant, tax manager, fund accountant, valuation analyst, financial reporting accountant, auditor, chartered accountant etc.

All above mentioned accounting professional have to submit their report to company’s chief financial officer.

Finance has limitation of profession but post is higher than accounting profession.

Career in finance could be a financial analyst, investment banker, financial examiner, personal financial advisor or money manager etc.

Banking and insurance underwriting are also open to finance majors.

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Click on link for YouTube videos
Share (Accounting for Share)	http://tiny.cc/889jkz
Share in Nepali	http://tiny.cc/k99jkz
Debentures	http://tiny.cc/yeakkz
Final Account: Class 12	http://tiny.cc/e89jkz
Final Account in Nepali	http://tiny.cc/w89jkz
Work Sheet	http://tiny.cc/579jkz
Ratio Analysis (Accounting Ratio)	http://tiny.cc/4fakkz
Fund Flow Statement	http://tiny.cc/wiakkz
Cash Flow Statement	http://tiny.cc/8gakkz
Theory Accounting Xii	http://tiny.cc/nfakkz
Theory: Cost Accounting	http://tiny.cc/tfakkz
Cost Accounting	http://tiny.cc/p29jkz
LIFO−FIFO	http://tiny.cc/dgakkz
Cost Sheet, Unit Costing	http://tiny.cc/w49jkz
Cost Reconciliation Statement	http://tiny.cc/829jkz

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Salary in Accounting and Finance

There is a wide salary range in the fields of both finance and accounting.

According to the Bureau of Labor Statistics (BLS), the median salary pay year in the USA in 2019 is given below:

Chief Executive Management $193,850

Financial Manager $147,530

General Manager $123,030

Accountant and Auditor $79,520

Accounting verses Finance

Accounting vs. Finance

Bases	Accounting	Finance
Starts and end	Accounting starts when bookkeeping ends.	Financial starts when accounting ends.
Focus	It focuses recording of inflow and outflow of cash and cash equivalent.	It focuses how to manage the money as well as assets and liabilities.
Present and future	It records day to day financial transaction and prepares financial statements.	It analyses financial statement and makes plan for the future.
Recording	It records financial transactions, summarizes and classifying them.	It works as procurement, utilization and investment of funds.
Employers	Business firms, corporations, governments etc.	Banks, corporations etc.
View point	Backward looking.	Forward looking.
Designations	Bookkeeper, accountant, CA/CPA.	MBA, FMVA*