What Is the Difference Between Accounting and Finance?
The difference between accounting and finance is that accounting places its focal point on the daily cash flow of a company, corporation or institution. Accounting involves the documentation, reporting, and maintenance of an organisation’s finances. Finance, however, focuses more on the management aspect. This could be for individuals, corporations or governments managing liabilities and assets as well as strategising plans for future growth. Accounting is responsible for producing financial statements, while finance is responsible for analysing them. To put it in simpler terms, accounting focuses on the organisation’s previous finances, while finance focuses on the future goals. Nevertheless, there are exceptions to practising accounting in Malaysia.
The Difference Between Chartered and Certified Accountants
Chartered accountants (CA) handle financial records. Based on these records, accountants give professional advice and audit accounts. CAs generally provide an in-depth explanation on taxation affairs. Certified Public Accountants (CPA) make sure that financial statements are in alignment with local laws and regulations. CPAs are in charge of analysing tax returns, conducting audits for their clients and tabulating budget reports. Nevertheless, there are exceptions to practising accounting in Malaysia. Not everyone who has an accounting or finance degree can be called an accountant, unless he or she becomes a member of the Malaysian Institute of Accountants (MIA). In the Malaysian constitution, the word ‘accountant’