Finanzbuchhaltung

Financial accounting is a specialized branch of accounting that tracks the financial transactions of a company. Transactions are recorded, summarized, and presented in a financial report or balance sheet, such as an income statement or a balance sheet, based on standardized guidelines. The two types or methods of financial accounting are cash basis and accrual basis. Although they differ from each other, both methods rely on the same conceptual framework of double-entry bookkeeping to record, analyze, and report data across countries at the end of a specific period, such as a month, quarter, or fiscal year. Financial accounting serves the following purposes: the creation of financial reports for general purposes, the generation of information used by management of a business unit for decision-making, planning, and performance evaluation, as well as the preparation of financial reports to meet regulatory requirements. The difference between finance and accounting is that accounting focuses on the daily cash flow in and out of a company or institution, while finance is a broader term for managing assets and liabilities and planning for future growth. Accounting is the method of bookkeeping.