Why do people say “Accounting people can do Finance, but Finance people can’t do Accounting.
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> Why do people say “Accounting people can do Finance, but Finance people can’t do Accounting.
Accountants say that, because they are envious of higher salaries and glamour of Finance.
But they are two different fields, even if they work closely together.
Finance decides what to do with money (or how to get more money). Money can be invested into stocks and bonds, or into acquiring other companies, or expanding operations inside the company, or building up a new product. Money sources are profits (if any), issuing stocks or bonds or private equity or bank loans.
Accountants record and implement decisions made by Finance people. They also act as quality control, i.e. make sure Finance people do not run the company into the ground.
“Accountants can do Finance” is like saying that manufacturing workers can design products that they make. They sure can come up with a new design, but there is no guarantee that buyers will like it, or it will pass quality checks.
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