What is the relationship between finance and accounting?

Finance and accounting are closely related but focus on different aspects of money management.

Accounting is about recording, summarizing, and reporting financial transactions. It keeps track of where money is coming from and how it's being spent.

Finance, on the other hand, is about planning and managing money for the future. It focuses on how to invest, grow, and protect money.

Example: Imagine a business. The accounting team records all sales and expenses, creating reports to show profits or losses. The finance team uses this information to decide whether the business should save, invest, or borrow money to grow.

Accounting looks at the past, while finance focuses on the future.