If you have never worked with taxes or your company’s finances before, making the right choice when it comes to hiring or working with an agency can be difficult. This article discusses the main points of difference between working with an accounting firm and a finance firm to help you make the right choice for your business.
Key Points of Difference between Accounting and Finance
How they handle money
Accounting is focused on the daily flow of money in and out of your organization. Accounting is also a preferred choice for managing personal income and expenses for families and individuals. Finance teams on the other hand are responsible for managing your overall assets and liabilities. Finance firms have more control over your overall finances and strategies for growth and stability.
How they work with financial statements
Accountants are always said to look backwards while finance professionals and advisors are said to look ahead in time. Accounting firms look at your past expenses and create accurate reports of the flow of income and expenses and give you a general idea of your financial standing. Finance firms, on the other hand, work with securing the future of your company by performing functions such as asset management and planning finance strategies for your future.
The functions they perform for the organization
When it comes to accounting, the accountant or accounting firm performs certain functions such as bookkeeping, internal reporting, financial reporting, management of revenue and expenses along with tracking, as well as risk management and auditing. Financial advisors and teams are focused on coming up with strategies to raise capital for your organization, creating sustainable budgets, handling the funds for your business, optimizing returns and handling all mergers and acquisitions.
Based on the points mentioned above, you will now have a clearer idea of what functions you need for your organization. Overall, when you work with accounting you get a clearer idea on how your existing finances and assets are being managed. When you work with financial advisors you get to know different ways in which you can build on your capital and make better investments for securing your company’s future.
