![]() Therefore we can say that what we practice is accounting, but what we study and apply is accountancy. While accounting deals with the practical part, accountancy deals with both conceptual, i.e.As against, by the term ‘accountancy’ we mean the profession of the accountants. Accounting is a discipline that is concerned with the nature of work performed by accountants.On the other hand, accountancy is the systematic body of knowledge that specifies various accounting principles, standards, and conventions, that are used to record the accounting information of the enterprise. Accounting is a process used to maintain a record of financial transactions while complying with all the standards, principles, and concepts.Key Differences Between Accounting and AccountancyĪs we have already talked about the meaning of these two terms, now we will move forward to understand the difference between accounting and accountancy: ![]() It has a wider coverage, that covers both book-keeping and accounting.Īccountancy explains – for what reason and in what way, the firm’s books of accounts are prepared, as well as the manner in which accounting information is summarized and communicated to its users.Īlso Read: Difference Between Accounting and Finance.It provides background to an accounting system.It is concerned with the ‘why to do’ and ‘how to do’ facets of accounting.Also, accountancy entails complete knowledge of accounting which includes both conceptual understanding of the subject and practical application as to the maintenance of books of accounts. To provide financial information to the interested parties.Īlso Read: Difference Between Accounting and Auditing Definition of AccountancyĪccountancy is the set of concepts, principles, techniques, and rules that constitutes the framework of accounting.To keep effective control over the business.To showcase the financial position of the business at the end of the financial year.To calculate the profit and loss of the business during the financial year.To maintain a proper record of the business transaction.In simple words, it is the means through which the financial performance and position of the business entity, are communicated to the users of the financial statement. It provides quantitative information concerning the economic activities of the enterprise that plays an important role in the decision-making process. It is the summarizing stage, which is concerned with the analysis and interpretation of the bookkeeping records.Īccounting is a discipline based on varied terms, rules, principles, and standards which are required to be followed. In the process of bookkeeping, business transactions and events are identified and recorded systematically. It is a field of knowledge that indicates the route to accounting.Īccounting is all about the preparation of financial statements and their presentation in the simplest possible manner, based on the information recorded, using the bookkeeping process by the bookkeeper. It is an action based on the knowledge of accountancy. ![]() Profession pursued or opted by the accountants. Nature of work performed by the accountants. Content: Accounting Vs AccountancyĪccounting is a systematic process that involves measurement, recording, classification, summarizing, presenting and interpreting the financial information of an organization.Īccountancy implies the systematic body of knowledge that prescribes accounting principles, conventions and techniques, which are to be followed during the accounting process. preparing and maintaining accurate financial records of the enterprise.Īccounting and Accountancy, two are commonly misconstrued by many students however there are subtle differences between the two which we will be discussing in this post. Who is an Accountant?Īn accountant is a professionally qualified person who performs accounting functions, i.e. On the contrary, the profession opted by accountants is termed accountancy. Accounting is a business language in which the economic activities of the enterprise are recorded and presented.
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