Question

Accountant's and finance personnel's responsibilities can overlap in many areas of a business. What part of this course( Acc 320) (in the real world) would you think an accountant would likely handle and what would the finance department handle?

Accountaing class

Answer 1

Term ‘Accounting’ means maintaining, recording and settling the financial records of the company. The primary job of any accountant is timely recording entries, managing proper ledger account and correct presentation of financial statements of company to its stakeholders. Accountants are individuals who work for an organisation, proprietors or companies .

Term ‘Finance’ means proper management of capital or funds infused in the business. Financial management is necessary because it is money of investors, normal people and its necessary to provide them adequate return on their investments. Also capital budgeting, capital restructuring all are important role of financial managers who work in different areas of wealth management, financial institutions or banking / nonbanking institutes.

How work of financial managers is different than that of accountants/ account manager?

(1) Both deal with finance, but work of accountants ia more of accuracy and detailing because they maintain the records of entries while that of financial manger is of analysis and informative drawn because they have to take financial decisions based on entries entered by accountant.

(2) Accounting is based on certain standard accounting principles which should not be deviated while making accounts. Whereas financial analysis is not standardised because its subjective and depends on the knowledge of the person who insighting it. Thus accounting managers are more technical in nature whereas financial manager are practical and perceptional.

(3) Main purpose of accountant is to prepare financial statments for presenting the financial strength of the company to investors and stakeholders. Where financial manager’s purpose to analyse certain factors which add on the value to the financial growth to the company.

(4) Accountants prepare financial statement by taking into consideration past figures and trend. Thus there process in backward whereas finance mangers are forward in process because they predict the future on the basis of their judgement and knowledge of market.

(5) Both need degree of education and perfection in work and presentation