Are Finance and Accounting the Same? Key Differences and Why It Matters

Introduction On the surface, finance and accounting somehow sound like synonymous terms, which deal with numbers, money, and the overall management of the finances of a certain company. Although close to each other, they are separate fields with different but important roles in the success of any business or organization. Understanding the difference between finance and accounting is thus very necessary in anyone's desire to work through the world of business, be it an entrepreneur, a student, or a finance professional. In this paper, we shall look into the differences between finance and accounting, their respective functions, and why understanding these distinctions can help you make better financial decisions whether for personal investments or in managing a business. The Basics: Defining Finance and Accounting Understanding if finance and accounting are the same requires an initial look into the definition of each. 1. What is Accounting? Mainly, accounting deals with recordin...