Decision Making

Finance and accounting also differ in respect of their purposes. The purpose of accounting is collection and presentation of financial data. It provides consistently developed and easily interpreted data on the past, present and future operations of the firm.. The financial manager uses such data for financial decision making. It does not mean that accountants never make decisions or financial managers net’er collect data. But the primary focus of the functions of accountants is on collection and presentation of data while the financial manager’s major responsibility relates to financial planning, controlling and decision making. Thus, in a sense, finance begins where accounting ends.

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