Accounting: Accounting is a process of recording financial transactions for preparing and maintaining financial accounts. Accountancy: Accountancy refers to interpretation of financial accounting and communicating the financial information to all concerned parties.

Major Difference between According and Accountancy

According and accountancy are two different terms which are often used interchangeably, but they have different meanings. The following are the major differences between according and accountancy:

Definition of Accounting

Accounting is the process of recording, classifying, summarizing, and interpreting financial transactions to provide information that is useful in making business decisions. Accounting is a vital aspect of every business and organization because it helps to keep track of financial transactions and provides crucial information that can be used to make informed decisions.

Objectives of Accounting

The objectives of accounting are as follows:

1. To keep track of financial transactions
2. To provide information that can be used to make informed business decisions
3. To comply with legal requirements and regulations
4. To measure business performance
5. To provide information to stakeholders for decision-making purposes

Advantages of Accounting

The advantages of accounting are as follows:

1. Helps to keep track of financial transactions
2. Provides information that can be used to make informed business decisions
3. Helps to detect and prevent fraud
4. Helps to comply with legal requirements and regulations
5. Provides information to stakeholders for decision-making purposes

Limitations of Accounting

The limitations of accounting are as follows:

1. Relies on historical data
2. Does not provide a complete picture of the business
3. Does not account for non-financial factors
4. Can be influenced by personal bias
5. Can be time-consuming and expensive

Conclusion

In conclusion, according and accountancy are two different terms, and the major difference between them is that according refers to the act of agreeing or matching, while accountancy refers to the process of recording, classifying, summarizing, and interpreting financial transactions. Accounting is essential for every business and organization because it helps to keep track of financial transactions and provides crucial information that can be used to make informed decisions.