Accounting forms the basis for business decisions by providing financial information to users. The basic data compiled by the accountants in the form of income statements, balance sheets, cash flows etc. when reaches the financial analysts, it helps them to make business decisions like setting financial goals, making decisions about investments etc .So accounting information is required as a practical necessity.
Accounting has different offshoots like financial accounting, managerial accounting and tax accounting. Financial analysts primarily use financial accounting as a tool for judging the current financial position as well as forecasting the status of a given business in future.
Finance and accounting go hand in hand, however accounting is based on certain principles, while finance is subjective in nature and involves financial decision making based on accounting data.
Also at times there are differences in approach between finance and accounting, these dissimilarities are discussed in the later part of the essay.
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