Administration vs Accounting: 6 important differences

The administration vs accounting They are two fundamental factors in the operating system of the companies that support each other. Accounting is more limited than management, focusing solely on numbers and not systems, products, or customers.

For its part, the administration provides accounting with the figures necessary to monitor the operating system of the company and on the other hand, accounting provides information to administrators to reduce costs and thus achieve negotiations profitable.

Important differences in administration and accounting

The importance of administration and accounting It is essential for companies, since they are similar, however, they present differences such as the following:

1. Difference in definition

Management performs a number of business functions, where specific jobs are performed through the owner or the company's workforce.
Accounting manages strategic financial functions, plans budgets, and performs financial reporting and fiscal oversight of the organization.

2. Liability difference

In the company, the administration is responsible for the majority of the commercial operating system such as advertising, manufacture of products and of all its personnel, taking into account all the elements that interact between Yes.
The accounting department is responsible for carrying out detailed financial processes of the operations executed by the company and tracks sales and expenses that are divided into different categories.

3. Control difference

Every company follows rules and processes in its operations, in the administration the controls are separated into functions between the departments and the workers and determines which are the departments that can authorize the execution of activities and the development of check.
In accounting departments, various internal controls are established, which include certain regulations and processes that protect the finances and economic records, rates, reviews and evaluations of the business.

4. Financial difference

The administration does not carry out any type of accounting or tax process.
Accounting focuses entirely on financial activities.

5. Difference in the execution of activities

Within the administrative departments the main activities of the company are carried out, also ensure that the organization complies with the contracts, the corresponding insurance and the policies of the law.
Many companies have an internal auditor who works in the accounting department, who is in charge of auditing the records, preparing reporting to shareholders as well as processing invoices, handling payroll requests, receiving payments, and preparing company taxes. business.

6. Difference in the labor system

The administration takes care of the company in general and takes care of the future financial system of the organization.
Accounting focuses mainly on the financial system and everything related to company expenses.

The administration and accounting of a company They are similar fields, but they have their differences and the main one is that the administration carries out influential management activities in the company, while accounting makes financial records and reports that help in making decisions in the business. You can see related topics on our website.

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