Differences Between Accounting And Accounting

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Why do business fail? Can a firm really do without an accountant? It is very common in these modern times for small businesses to think that they can carry on all of their businesses and keep an eye on their books without the help of an accountant. Due to financial limitations and tight budget in a time of economic volatility, they believe it will be satisfy for their bottom line if they do not capitalize in an accountant’s service.
In reality, many new businesses start up fail in their first year. The first familiar reason for new firms failing is lack of record keeping. They think satisfying customers’ needs is more important than they pay attention to record keeping. Perhaps, may be most of the entrepreneurs think they can remember everything. …show more content…

The basic of accounting is to collect and provide information and switch it into a form that is useful for decision-making. Accounting provide and easy annotation on previous data, present and future tendency of company. However, in finance, is generally concerned with procurement, distribution and control of financial resources of a concern. It is important to ensure regular and sufficient supply of funds to the concern. The firm may become sick or the profitability of the business may be affected if the funds are not obtainable as and when …show more content…

They are linked to each other. Accounting is a fundamental part of the finance world. Accounting gives information about how to operate a business. Financial statements such as income statement, statement of financial position and the equity of changes in financial position which include sources and uses of funds statement present the end results of an operation’s accounting. The connection begins when financial director uses these data that kept in the statement and reports to analyse the business performance and the future payments. Financiers have a benefit because they analyse the profitability of business and make sure the profits are at a stable position. Hence, accounting and finance are essentially closed

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