Sajid Ali’s Post

Difference between Accounting & Finance! ACCOUNTING: 1- Records Financial Transactions: Tracks all financial activities of a business, from sales and purchases to expenses and income. 2- Classifies and Summarizes: Organizes financial data into meaningful categories, such as assets, liabilities, and equity. 3- Prepares Financial Statements: Creates reports like income statements, balance sheets, and cash flow statements to provide a clear picture of a company's financial health. 4- Ensures Compliance: Adheres to accounting standards (like GAAP or IFRS) to maintain accuracy and transparency in financial reporting. 5- Supports Decision-Making: Provides essential information to management and other stakeholders for informed decision-making. FINANCE: 1- Manages Financial Resources: Oversees the allocation and utilization of funds to maximize returns and minimize risks. 2- Makes Investment Decisions: Identifies and evaluates investment opportunities to grow the business and increase shareholder value. 3- Raises Capital: Secures funding through various sources, such as issuing stocks, bonds, or obtaining loans. 4- Risk Management: Assesses and mitigates financial risks, including market risk, credit risk, and operational risk. 5- Financial Planning: Develops long-term financial strategies and budgets to achieve organizational goals.