Which is the best subjects finance or accounting in modern business ? Why, as well as finance is part of accounting or part of economics?
Prakashs from Nepal
Prakashs, both finance and accounting is important in modern business and you should learn both because without both business cannot live long time. Accounting and finance subjects are helpful for giving knowledge to businessman for taking better decision. Without the knowledge of accounting and finance, you will take wrong business decision and will become only unsuccessful businessman in your life. For example, you are buying the products for your show. What optimum quantity should you buy? You will get its complete knowledge in accounting’s inventory management concept. If you will decide to buy the quantity what you like without studying accounting, you will face over and under stocking problem. Both will misuse your limited capital resources. This is very small example. There are lots of business decision which can only take after analysis of accounting data. So, study of accounting subjects is must for a good businessman.
Like this, you should also study finance. For example, finance tells us, for getting good value of our product, we should sell it in its market. For example shares are sold in stock market. Gold is sold in gold market. If there is a businessman who do not study the finance, may sell his worthy financial product to middleman who will get highest profit by selling in the proper market. Like, there are lots of concepts of finance which any good businessman should study for becoming the perfect in modern business.
Finance is basically part of economics but from time to time, there are lots of accounting concepts which are taken by finance. So, today, we can say that finance is the part of both accounting and economics. Except this, finance has its own identity because there are lots of experts of finance are doing lots of researches in this field. So, it has also its own identity.