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Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTION

The difference between financial management and accounting Introduction: Financial management can be defined as the management of liabilities and asset of the company so as to plan the activities of the business to expand and grow in the future. Accounting can be defined as the art of recording financial transaction and reporting the financial transaction for use by business and different stakeholders. Accounting projects the picture about the financial position of an organization. Financial management on the other hand manages the assets and plan future course of action. The end user of the reports generated by accounting is creditors, analyst, regulators, shareholders and management, whereas in case of financial management they are shareholders and management of the company. The main objective of accounting is to provide financial information, whereas financial management strives towards effective use of assets, earn good returns, generate cash and create wealth. The key elements of accounting are financial accounting and management accounting, whereas it includes financial planning, financial decision making and financial control in case of financial management. The primary difference is financial management involves the management of investment and finances of different entities, organizations and individuals, whereas accounting comprises of recording the transaction, maintaining the financial records and reporting the same to different stakeholders of the business.

The difference between financial management and accounting Introduction: Financial management can be defined as the management of liabilities and asset of the company so as to plan the activities of the business to expand and grow in the future. Accounting can be defined as the art of recording financial transaction and reporting the financial transaction for use by business and different stakeholders. Accounting projects the picture about the financial position of an organization. Financial management on the other hand manages the assets and plan future course of action. The end user of the reports generated by accounting is creditors, analyst, regulators, shareholders and management, whereas in case of financial management they are shareholders and management of the company. The main objective of accounting is to provide financial information, whereas financial management strives towards effective use of assets, earn good returns, generate cash and create wealth. The key elements of accounting are financial accounting and management accounting, whereas it includes financial planning, financial decision making and financial control in case of financial management. The primary difference is financial management involves the management of investment and finances of different entities, organizations and individuals, whereas accounting comprises of recording the transaction, maintaining the financial records and reporting the same to different stakeholders of the business.

Solution Summary: The author explains the difference between financial management and accounting. Accounting projects the financial position of an organization, while accounting manages assets and plans future course of action.

EBK HEALTHCARE FINANCE: AN INTRODUCTION

EBK HEALTHCARE FINANCE: AN INTRODUCTION

6th Edition

ISBN: 9781567937428

Author: Gapenski

Publisher: YUZU

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EBK HEALTHCARE FINANCE: AN INTRODUCTION

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