accounting vs financial management

Accounting and financial management are both essential aspects of business operations, but they serve different purposes and functions Accounting focuses on the systematic recording, reporting, and analysis of financial transactions. It involves tasks such as tracking income, expenses, assets, liabilities, and preparing financial statements like the balance sheet, income statement, and cash flow statement. Accounting ensures compliance with tax laws and regulations, while also providing an accurate historical record of financial activity Financial management, on the other hand, is a broader, strategic function that involves planning, directing, and controlling a company’s financial resources. It focuses on making decisions regarding investments, financing, budgeting, and long-term financial goals. Financial management aims to optimize the use of company resources to maximize profitability and business growth, ensuring that financial goals align with overall business strategies