Banking for Beginners

In this post, we shall discuss difference between knowledge streams of Accounting and Finance . A vast majority of students/ youngsters/ aspirants cannot distinguish between the two or do not appreciate difference between the two streams leading to confusion about skill acquisition and career options. Although both Accounting and Finance deal with administration of business, but their objectives are entirely different. While Accounting has more to do with historical data, its validation and analysis; Finance is the art and science of building up on that historical data to plan and project for future. Simply put, if we see a business Balance sheet, then Accounting ends with signatures on Balance sheet while Finance starts after Balance sheet has been signed. So Accounting deals with past while Finance deals with Future . Accounting is related to creation of financial statements while Finance covers interpretation and analysis of past statements to draw out future strategy. ...