The finance and the accounting both are separate disciples which often piled together. We all know that the technology of planning about the business assets distribution is known as financial and the process of recording and reporting the transaction of the financial is called accounting. But they both play an important role in the business. We will learn in detail about how finance and accounting work together.
People who work in the department of finance, are involved with the business assets distribution planning. This also includes the capital investment coordination, investments which are debited back in order to improve the business values. Business Chief Financial Officer designs the objectives of the business and goals of the financial. People support for financial analysis, accounting management etc. and the one who works for the functions of an accounting for the business are more into reporting and the tracking the transaction of the business financially and they are the in charge for handling the management of cash flow, general ledger, payment of tax, etc. the important thing to be noted is that the whole organizations of the accounting team will be reporting to the financial officer. These are things which they follow.
- Obeying the law
A good accountant has a practical advantage as they always follow the law. This shows that a bad accountant may violate the laws and may not pay the right tax. These could lead you in an unnecessary trouble.
- Creating the budgets
One has to have a good knowledge of the flow of the money in the business with the proper practice. One can start budgeting on the revenues and its knowledge on making proper decisions to maintenance and growing the business.
- Performance analyzation
Recoding the financials of the company helps to know about where the money is spent.
- Development of strategy
Almost most of the company’s goal is to achieve profit. A good strategy helps the business to reach its goal and it requires a good information.
To be frank the Finance considered being a planning about the future of the financial transactions and the accounting to be as past financial transactions. Though they are different they both considered to be the management of the asset thus, they are most often grouped together.