{"id":23933,"date":"2021-07-01T09:36:18","date_gmt":"2021-07-01T04:06:18","guid":{"rendered":"https:\/\/keydifferences.com\/?p=23933"},"modified":"2021-07-01T09:37:17","modified_gmt":"2021-07-01T04:07:17","slug":"difference-between-accounting-and-accountancy","status":"publish","type":"post","link":"https:\/\/keydifferences.com\/difference-between-accounting-and-accountancy.html","title":{"rendered":"Difference Between Accounting and Accountancy"},"content":{"rendered":"

\"accounting-vs-accountancy\"<\/a>Accounting<\/strong> is meant to keep a complete record of the business transactions in a sequential manner, which forms a base for the preparation of the financial statements of the company. It aims at providing information to the interested parties to make sound financial decisions.<\/p>\n

Accounting is a business language in which the economic activities of the enterprise are recorded and presented. On the contrary, the profession opted by accountants is termed accountancy<\/strong>.<\/p>\n

Who is an Accountant?<\/h4>\n

An accountant is a professionally qualified person who performs accounting functions, i.e. preparing and maintaining accurate financial records of the enterprise.<\/p>\n

Accounting 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.<\/p>\n

Content: Accounting Vs Accountancy<\/h2>\n
    \n
  1. Comparison Chart<\/a><\/li>\n
  2. Definition<\/a><\/li>\n
  3. Key Differences<\/a><\/li>\n
  4. What is Accounting Cycle?<\/a><\/li>\n
  5. Branches of Accounting<\/a><\/li>\n
  6. Conclusion<\/a><\/li>\n<\/ol>\n

    <\/a><\/p>\n

    Comparison Chart<\/h3>\n

    \n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t
    Basis for Comparison<\/th>Accounting<\/th>Accountancy<\/th>\n<\/tr>\n<\/thead>\n
    Meaning<\/td>Accounting is a systematic process that involves measurement, recording, classification, summarizing, presenting and interpreting the financial information of an organization.<\/td>Accountancy implies the systematic body of knowledge that prescribes accounting principles, conventions and techniques, which are to be followed during the accounting process.<\/td>\n<\/tr>\n
    Explains<\/td>Nature of work performed by the accountants.<\/td>Profession pursued or opted by the accountants.<\/td>\n<\/tr>\n
    Concerned with<\/td>Practical part<\/td>Both theoretical and practical part<\/td>\n<\/tr>\n
    Relatedness<\/td>It is an action based on the knowledge of accountancy.<\/td>It is a field of knowledge that indicates the route to accounting.<\/td>\n<\/tr>\n
    Scope<\/td>Narrow<\/td>Wide<\/td>\n<\/tr>\n
    Tools<\/td>Financial Statements<\/td>Principles and Techniques<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
    \n<\/a><\/p>\n

    Definition of Accounting<\/h3>\n

    Accounting 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. In the process of bookkeeping, business transactions and events are identified and recorded systematically. It is the summarizing stage, which is concerned with the analysis and interpretation of the bookkeeping records.<\/p>\n

    Accounting is a discipline based on varied terms, rules, principles, and standards which are required to be followed. It provides quantitative information concerning the economic activities of the enterprise that plays an important role in the decision-making process.<\/p>\n

    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.<\/p>\n

    Objectives of Accounting<\/h4>\n