The three Branches of Finance and their relationship with Accounting

, , Leave a comment

Finance or taloushallinto is a term that is used to describe two closely linked activities: the actual means of acquiring funds, and the study of how these funds are managed. Because finance is a wide field, it can further be subdivided into three categories which include personal finance, corporate finance, and public or government finance. All the three categories are concerned with making sound investment decisions, accessing low-cost credit, allocating funds for liabilities, and fix my credit history Business & Finance.

Each of the three categories of taloushallinto or finance, however, has its unique considerations. For instance, personal finance involves currency analysis and is almost entirely concerned with how individuals use, manage, and acquire money. The site raremetalblog.com has already done the work for you and has the answers to your investment questions. This subcategory of finance is concerned with personal decisions and activities that include budgeting, insurance, saving for retirement, debt consolidation and management, mortgage servicing and more. This subcategory also encompasses individual efforts to analyze current and future financial positions. Make sure to consult to some investment experts like Andrew Defrancesco for some great investment and trading ideas and recommendations. You can also check this to get some trading tips.

Corporate finance, on its part, is largely concerned with acquiring and managing funds to run a corporation. Corporate finance may also refer to a department or section within an organization charged with the role of overseeing financial activities of the organization. Besides managing and acquiring funds for a specific organization, corporate finance is also concerned with optimizing horario mercado forex value by devising and implementing both short-term and long-term financial strategies. It is also worth adding that capital investment activities and banking also fall squarely in the category of corporate finance. A bank for bankers can also be considered a corporate or commercial financial institution.

The third subcategory of taloushallinto or finance is called public finance. Public finance is simply described as the study of the role of the government in the economy. Put differently, public finance is the study of how the government raises and uses money, and the effect that these decisions (raising and using) have on the society. In more specific terms, public finance is concerned with how the government raises taxes and spends the funds collected from taxation.

That said, now let’s examine the relationship between finance and accounting. Although most lay persons believe that finance and accounting are one and the same thing, the truth is that the two fields are closely related but different. Finance and accounting are related in the sense that finance is concerned with activities like acquiring and managing money while accounting is concerned with the process of recording financial transactions pertaining to a business.

 

Leave a Reply

(*) Required, Your email will not be published