Finance is responsible for managing the financial resources of the organization. This includes managing cash flow, raising capital, investing in assets, and managing risks. Finance also plays a critical role in strategic planning, budgeting, and forecasting. Key functions of finance include financial analysis, treasury management, financial reporting, and investor relations.
Accounting involves recording and reporting financial transactions. This includes tracking revenue, expenses, assets, and liabilities, and ensuring compliance with accounting standards and regulations. Accounting also provides insights into the financial health of the organization, enabling informed decision-making. Key functions of accounting include bookkeeping, financial reporting, tax compliance, and audit preparation.
Together, finance and accounting ensure that businesses have the financial resources they need to operate effectively and make informed decisions. By providing accurate financial information, businesses can manage risks, plan for the future, and achieve their goals.