The Relationship Between Finance and Accounting Essay

Although finance and accounting are both involved with the financial aspect of a business or organization, the managers and employees in these departments deal with finances in completely different ways. Accounting deals mainly with preparing and examining financial records and ensuring their accuracy, making sure taxes are paid on time and properly, and assessing financial operations to help ensure that organizations run efficiently. On the other hand, finance deals primarily with making important financial decisions for an organization and helping â€Å"develop strategies and plans for the long-term financial goals of an organization† (Financial Managers 2012). It is also important to note that financial managers use the financial information†¦show more content†¦However, financial managers depend heavily on the financial reports and other financial information organized by the accounting department in order to make sound decisions that will hopefully keep their hea lth care organization running effectively and efficiently and continue financial viablility within its community. Since accounting and finance do both deal with the financial position of a health care organization, in many smaller businesses with narrow portfolios of management skills, the same person is usually the financial and accounting manager. However, in larger businesses, these roles are held by separate managers and/or groups of finance and accounting employees (Jana Kajanovà ¡ 2006). Secondly, even though finance and accounting deal with the financial aspect of a health care organization in relatively different ways, they are still both very important to the continued financial viability of an organization. The financial viability of an organization â€Å"requires the receipt of funds in amounts sufficient to meet their financial requirements† (Cleverley, J.O., Cleverley, W.O., Song, P.H. 2011), which calls for finance and accounting departments to both run effectively and efficiently. For example, â€Å"deciding which capital projects will be undertaken is not an easy task; the allocation of limited resources to specific project areas directly affects the efficiency and effectiveness and, ultimately,Show MoreRelatedRelationship Between Business And Finance And Accounting779 Words   |  4 PagesIn the world-at-large, Finance and Accounting are often erroneously linked together. As if to say, they are one-and-the-same – a sort of a misnomer, you c an say. 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