Finance and Accounts

Finance and accounts are two of the most important areas in the financial life of an organization. Financial accounting focuses on the analysis and summary of various financial transactions involved in a company. This includes the compilation of financial reports available for public scrutiny.

Accounts is concerned more with a company's finances. The main function of accounts is to track the income and expenses of the organization. Accounts will also include records of bank deposits, loans, leases, securities issued, stocks purchased and sold. All these accounts will be listed in a single account statement. Accounts must be maintained by an individual who is responsible for their care.

When it comes to finance and accounts of a company, financial statements are used for the purpose of recording and summarizing the activities of the organization. Financial statements are made from a number of documents. They include audited financial statements prepared by an accountant or financial manager of the organization, statements from third parties, and some reports prepared by government bodies. Financial statements are prepared annually by all organizations as required by law. The financial statements should be filed with the Annual Return of the Corporation, Corporate Income Tax Return, and Canadian Income Tax Return.

The other type of account is accounts receivable. Accounts receivable is the money owed to customers for purchases made by the organization. In order to get credit in this area, the organization has to make sales of products or services to the customer. Accounts receivable is used to help the organization to pay their bills, and can also be used to offset losses if a customer purchases more than what is expected.

The third type of account is accounts payable. Accounts payable is the money due from the organization to their customers. This money may be due for purchases, payments, and leasehold interests. When an organization wants to collect this money they use a method called the collection method. This method involves sending an invoice to the customers and asking them to make monthly payments, or making partial payments, so that the organization can pay their debt.

In summary, finance and accounts are two of the main types of accounts that involve the organization's finances. They are used to track and summarize the financial activities of the organization and to track and compile the results of their activities. Financial statements are prepared by the accountant or manager of the organization for public review and distribution, and they may be sent to the appropriate government body for distribution.