Accounting, Finance, and Audit – Similar though Distinct

Have you ever thought that how accounting and finance are different from one another, what each one of them denotes? While most of us would think that they both mean one and the same thing, I would take this opportunity to explain that how and on what lines do they differ.
In a layman’s language, accounting refers to day-to-day inflow and outflow of money whereas, finance denotes the management of assets and liabilities. The term finance is much broader and denotes bonds, investments, stocks and much more. Accounting on the other hand only deals with daily financial reports and records of a particular business. Although both these terms are completely different from one another, they hold equal importance in the business world. They both need equal attention in order to keep the business running smoothly. Since our economy has been growing progressively, the need of businesses to manage their Accounting and Financial Services has become a challenge and to help these companies overcome their challenge, we have seen rapid emergence of organizations that offer such Accounting and Financial Services worldwide.
Now that you know what accounting and finance denote, let us understand what audit exactly means because it is one such term that is closely related to them and might also seem to be an overlapping one, to many. Audit largely refers to the process of inspection of an organization’s accounts to ensure that all the taxes have been accurately filed well in time and that all the financial transactions are in place. While you might think that accounting and finance also deal with transactions and money, it is important to understand that auditing is just to ensure that everything has already been done accurately, it is just an examination of the already recorded transactions. Auditing can be done both by the organization itself or can be outsourced to a firm offering Corporate Auditing Services.
In order to compete in this rapid growing and competitive world, it is advisable for all the organizations, especially the big fat business firms and the ones that do not have the required skill set, to outsource the work to the companies that are already efficient and offer these Accounting and Financial Services and Corporate Audit Services. This would help the companies focus on their primary work and get rid of any unnecessary tension. Since all their focus would be on their primary work, they would be able to expand and would not have to think of how would they cope up with maintaining accurate accounts and finances.