Accounting and Finance are two separate disciplines but are sometimes considered together because both of these deal with money. Despite this similarity, these departments differ substantially in terms of the work they do for a company.
Finance involves long-term planning and looking to the future to ensure that the business structures and financial spending models are sustainable for the long term. And accountants manage the movement of money in and out of the company on a day-to-day basis.[i]
(Related Blog: The Importance of Auditing)
Since an organisation requires both of these to function, we usually see accounting and finance professionals working together. Throughout this article, you will find examples of how accounting and finance work with each other.
If you need reimbursement for a company dinner or any products you got for the office, then you’ll approach the accounting department since they deal with these everyday issues.[ii]
All the employees report the spending that they make on behalf of the company to Accountants. The accountants then create a report of these transactions which finance professionals use to create the annual budgets.
When a business needs to cut its spending and reduce costs, it will ask the finance department to make a plan and recommend a course of action. For this, the financial analyst will study the reports created by the accountants to examine where the company’s revenue is going and where they can make changes to increase profits.
So it is only through the collaboration of the two that all professionals dealing with the company’s money are on the same page about running an organisation.
While accountants create the profit-loss statements based on the company’s transactions, finance looks at that data and decides where the company stands concerning its goals, and if any changes need to be made to improve the finances of the organisation[iii].
Hence, every major decision that a business takes has input from both accounting and finance. The professionals of these departments have separate roles in the company but deal with similar tasks.
Since these two fields are complementary to each other you’ll find that both these subjects are taught together on the academic side as well. Even at the postgraduate level, you can acquire a Masters degree in either of these subjects separately, or earn a single MBA in Accounting and Finance.
Conclusion
If you are looking to start a career in accounting or finance, then understanding the differences will be important in reaching a decision.
Accounting and Finance work closely together. Finance analysts look at the accountants’ data before making decisions about approving funding for projects. While accounting manages the company accounts and audits the finances.
A Masters in Accounting and Finance from the UK will be conducive to growing your career and learning more about the field. You can decide which of the two is more suited for you by learning more about the job descriptions, salary ranges, and career growth opportunities in each.
SNATIKA's UK Masters in Accounting and Finance is the best fit for busy finance professionals at senior levels. It can save you time, money, and hassles while providing you with the highest quality, British Masters while working full-time on your job.
Related Blogs
- The Importance of Auditing
- Accounting and Finance Trends
- Accounting Basics
- How Can A Masters in Accounting and Finance Accelerate Your Career?