Differences

Financial Accounting VS Cost Accounting The difference between financial accounting and cost accounting is very important to understand as both of them serve different purpose and audience. A person from the management may not find certain information relevant, and at the same time, a cost accountant can’t work without this information. A creditor and a cost accountant […]

Debit Note Vs Credit Note Debit and credit notes are an important part of today’s business culture as corporations have grown large and so have their credit sales and purchases. Accounts payable management and accounts receivable management including dealing with credit and debit notes on a daily basis. Therefore, knowing the difference between a debit […]

Income Statement vs Balance Sheet An Income statement and a Balance sheet are two significant financial statements in accounting, and both statements have their own individual purpose and identity. They are important, yet very different. Below, you will find few points showing the difference between the income statement and balance sheet.   Income Statement (Profit […]

Fixed Assets Vs Current Assets Basis Fixed Assets Current Assets Definition Fixed assets are assets that last for a long time and are acquired for continuous use by an entity. They are resources held for a short period of time and are mainly used for trading purposes. Timeframe The assets of this type are held […]

Balance Sheet Vs Trial Balance Balance Sheet 1. It is a statement that shows a detailed listing of assets, liabilities, and capital demonstrating the financial condition of a company on a given date. 2. The purpose of preparing a balance sheet is to show the financial position of a business. 3. A balance sheet is mandatory to […]

Journal vs Ledger During the accounting cycle, there are two important steps to be followed; recording journal entries & preparing ledger accounts. They are related, however, there is a difference between journal and ledger which can be summarized as follows;   Journal 1. Journal is a book of accounting where daily records of business transactions […]

Trade Discount vs Cash Discount Discounts play an important role in business transactions. They have has been part of business transactions since the beginning of time. Buyers offer discounts and sellers receive it, either implicitly or explicitly. The purpose of this article is to explain the difference between trade discount and cash discount in detail. […]

Gross Profit Vs Net Profit Profit is the friendliest term to the owner(s) of a business, however, during the life-cycle of a business, the term “profit” is divided into different sections in order to find out the exact sources where the benefit is derived from. Gross Profit The word Gross means “before any deductions”. This […]

Financial Accounting VS Management Accounting The difference between financial accounting and management accounting is very important to understand as both of them serve different purposes and audiences. A person from the management may not find certain information relevant, and at the same time, a cost accountant can’t work without this information. A creditor and a manager would need […]

Finance VS Accounting Accounting involves the creation, management, summation & communication of day-to-day transactions of a business ultimately leading to the preparation of financial statements. On the other hand, finance has a wider scope and is mainly responsible to support in decision-making such as investment, divestment, cash management, Working capital management etc. Difference between finance […]

Reserves Vs Provisions Reserves and provisions are somewhat alike but are created for different reasons and under distinct circumstances. Both are important for a business and one can’t reduce the importance of the other. This article covers major points of difference between reserves and provisions. Reserves are what a business would put away from its profits […]

Tangible Assets Vs Intangible Assets An asset is a useful/valuable thing or person. Assets are divided in various ways depending on their physical existence, life expectancy, nature, etc. The difference between tangible assets and intangible assets is purely based on their physical existence in a business. In simpler words, an asset is a piece of property […]

Bookkeeping Vs Accounting Both bookkeeping and accounting are used interchangeably in the financial world, however, there is a notable difference between bookkeeping and accounting. Bookkeeping is a part of accounting whereas accounting itself is a wider concept. Definition of Bookkeeping – Literally, it means the activity of keeping (or maintaining) financial books, i.e. recording financial transactions […]