Skip to main content

Difference between Accounting and Finance


Most of the students are confused with the difference between Accounting and Finance…
Accounting is majorly concerned with the recording, classifying and reporting of the data relevant to Assets, Liabilities, Expense, Income and Capital of the business, whereas, Finance is the management of Cash/Money/Funds. The purpose of the Finance is to control the financial resources of business and making long term decision for business future.

Comments

Post a Comment

Thanks to all , for valuable comments

Popular posts from this blog

Market Segmentation a difficult job for Marketer.

In market segmentation we divide the whole market into small segments or parts. It is done because of ease for both seller and buyer. Market segmentation is made by seller who will sell his products to target customers. Segments will help him to access them easily and efficiently. For example, we (organization, say ‘PakMobiles’) make five segments of Pakistan, Punjab, Sindh, KPK, Balochistan and Islamabad. Suppose we want to sell our product that is a vedio camera mobile set (Rs.65,900). Now we want to sell our product in five segments separately then we will have to further divide five segments into smaller segments that are markets like in Islamabad we may make further segments for example; Jinnah Super Market, Abpara Market, Melody and I-9 Market. Here you will find that Jinnah-Super is expensive than abpara and Melody and I-9 Market is cheaper than all. Here we shall supply our product to majorly to Jinnah-Super or abpara, Melody instead of I-9 Market because we know that our prod

Agriculture or Industry? The best for Pakistan.

Pakistan is bestowed with rich natural resources that are Minerals, Oil and Gas, Aquatic animals, Forest and Human resource of course. With growth rate of 2.2%(2011) and per capita income $2400(2010).  Unfortunately we could not manage all the aforesaid resources and as a result we are now one of the Under Developed Country (UDC) of the globe. Here we should not concentrate on the reasons behind for our backwardness deeply. But we can predict our destination by a simple analyses that is, “Whether Agriculture is best or Industry, for our country prosperity?”. This question may help us in deciding what path should be selected to make Pakistan a developing country. It is said that Agriculture is the back-bone of our country but to an extent it may be true but in long run it is false. About 70% of our country population is based on Agriculture. But on the other hand   it makes 19% contribution is Gross Domestic Product (GDP).On the other side Industry contribution in GDP is about 27%.

Cost and Management Accountant last hope for Pakistan Industries.

There are various Professional institutions in Pakistan like; Institute of Cost and Management Accountant of Pakistan (ICMAP), Institute of Corporate Sectaries of Pakistan (ICSP), Pakistan Institute of Public Finance Accountants (PIPFA) and  Institute of Chartered Accountant of Pakistan (ICAP).  ICSP members works as Company secretaries for large organizations where they deal in company affairs PIPFA and ICAP members works in finance and Accounts at middle levels and majority Chartered Accountants are also employed in companies as Auditors where they just audit companies accounts instead of value addition in business. Pakistan with weak industry, under deep crisis need survival. Most of the industries working in Pakistan are generating very low profit the reasons may be that these having high production cost or higher Cost of sale, or having unskilled labours or lack of Professionals like; Cost Management Accountants or Industries do not have sufficient capital to invest for expansion