Education and Career Forum

Hi, what is Accounting and Accountancy? What are the basic differences between Accounting and Accountancy? Is it two different separate courses or same terms used in different manners?

There is not much difference between Accounting and Accountancy. The term Accountancy is used for broader perspective and Accounting is a part of Accountancy.

Accountancy is the process of communicating financial information of a Company.

Usually Companies will communicate financial information through Financial statements like Profit and Loss statement and Balance sheet statement.

By these financial statements only, we can come to know whether the organization is running in a profitable way or not.

Accounting is the process of maintaining financial records.

There will be multiple transactions that happen on daily basis in any organization.

These transactions will be entered or recorded in the form of Journals which in turn is a part of Ledger.

This will help in preparation of Trail Balance and other financial statements. This complete process of recording and maintaining all business transactions is called Accounting.