The two terms have been used together in many occasions because they always have some relationship to each other. As much as the two terms may not mean the same thing, the truth is that they are closely related. Perhaps the main difference would be in the fact that financing directly refers to the process of putting money into use towards achieving a particular goal. Accounting on the other hand is mainly about the keeping of systematic records particularly on the monetary transactions which could as well be involved in the financing of the projects in question.
From the above explanation, it is quite clear that the two terms need to complement each other to achieve financial success. The process of investment needs some financing and very close and systematic records to help the investor in keeping track of the expenses as well as the earnings of the investment. It is highly recommended that the two sectors should however be separated to avoid the possibility of confusion when setting up an investment. This is simply to say that the same person shouldn’t do the accounting and the financing at the same time. In order to maintain transparency and accountability in the investment, the accounting should be done independently although the two must help each other with the daily occurrences to help update the events.
While the financing is responsible for pumping more funds into the investment, the accounts should always be there to ensure that the money pumped into the business or investment is well utilized and records of any transactions are kept and balanced to ensure that nothing goes wrong. If the accounting is not properly done at all times in any investment then the financing is all useless because chances are that the investment will all fail.
Accounting is the main steering element behind the success of any financing initiative. The balancing of income and expenditure accounts and the balance sheets as well as other functions like auditing are vital in the success of s business, they help the business in knowing its status at any given time thus making it easy to make important decisions that affect the investment either negatively or positively. With the right accounting records you can be able to project and decide on the future financing plans for your business you could be in a position to know how much you need to add or whether you need to reduce the financing in the near future or not.