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Clearing The Confusion Between of Accounting and Finance Departments

I researched the use and the expansion of the finance department over accounting.  I was surprised to see how this has changed over the years for the world but scripturally accounting means the same and so much more than paper or digital money.  (Note:  I am not saying money is evil.  Do not label me.)

The audio is broken up to help you absorb the information in smaller increments.  Scroll through the blog for each audio piece.

Audio 1- Part 1

I covered what accounting is and what I do in my last blog.  Today I wanted to explain define “finance” and clarify the fact it is only a branch of accounting.  I know many of the jobs today place the “finance department” over the accounting department.  However, finance is a part of accounting.  When speaking of financing people go to them to normally get money such as investments, loans, credit lines, or even donations as in fundraisers, or assets management.  Many people rent or loan out the use of their property and charge fees for rental or leasing.  Some will allow payment plans to purchase the equipment or property also called leasing or financing. The person or company will charge the price plus interest.  Income from this process is call financing income. 

The money gained from this type of income stream is call financing or financing activities and it can be a primary function of the business or secondary income.  Often the small business owner will finance our business.  We invest our personal money earned from other means into the business however this is only meant to be temporary.  I have seen many unprofitable business owners get stuck in this process of self-financing or even seeing debt to fund the business.

What is finance?  We need to start with what is meant by managing finances because the meaning of the word is being used incorrectly.  The practice of using “financing” for everything is keeping people in debt.  A word is used to create an image.  If you change the image of the word finance people will accept debt as a primary stream of income instead of seeking work and earning from our gifting, training, and skills as our primary stream of income.  Money earned is supposed to support a business before investments or lending.  If a business operates primarily off loans and investment you essentially lose control.  Yes, you can have controlling interest, but many companies have lost their ownership by takeovers.  Because the owner did not manage their resources the company’s “finance” executive essentially sold or stole the business from the sleeping owner or owners.


Audio 2 - Part 2

Know the status of your cash flow.  Accounting is what measures cash flow, creates processes, plans, and helps to create sustainable and profitable actions.  The accounting department is the heart of the business, not the finance department.  The finance department is only a branch of accounting.  Yes, one can say finance means to pay for but why would a lending department also manage your money?

Audio 3 Part 3

The finance department would handle lending credit and manage by the accounts receivable accounting department.  Determining if a client is eligible for a credit line is the finance department position.  So, a sale would not go through unless the client would qualify for a loan or line of credit offered by the business.  A line of credit is the approval of payments for a purchase.  Instead of making one large payment the accounts receivable department also has a collections department to follow up with customers for payments.  The collection is a part of accounts receivable.  Accounts receivable creates invoices and applies payments received (a bookkeeping function of accounting.) 

Audio 4 - Part 4

Looking at the meaning of "finance"

Finance 1




Finance 3

Do you notice finance means “end?”  Finance is debt or as you saw above finance is creating funding through fundraising, investments, loans, or credit debt.  However, it is the end of your cash flow when you have too much financing go on.  Yet, I am seeing an alarming trend of people that do not know how to sell or want to do the work of selling.  Many business owners are taking the easy button to business.  The “easy button” really is the lazy way of doing business and it is what business owners want today and this includes managing their money.  Finance has taken over in the marketplace because it is easier to have someone give you money or borrow money than it is to do the work.  Managing work, planning, and providing a quality service or product by managing your spending internally is all done with accounting processes. 

While the idea of "financing" has taken over people believe accountants are only bookkeepers or tax accountants or collectors.  I cannot explain enough that bookkeeping is only a portion of accounting.  Although we can not provide our accounting services without bookkeeping.  Bookkeeping is essential for accounting.  Bookkeeping is required for tax preparation.  Accounting is designed to be proactive and not reactive.  Bookkeeping does not come first but bookkeeping is the reactive action to the initiation of income and spending practices created by planning and strategizing from accounting knowledge. 

Accounting Flow Chartpng

Accounting is a repeat process (cycles) in many forms that will also eliminate wasteful habits, fraud, loss to create more productive internal habits that result in an increase in profits.  Benefitting from accounting is to treat your accountant as a resource for planning not just taking down notes or bookkeeping. 

Accounting Cycle Chart


Audio 5 - Part 5 and Closing Audio

What came first the accountant or the finance person?  When I check scriptures, the accountant came first.  Finance is not looked upon as a righteous way of income because interest is referred to as usury.  You are being used for your work or your money.    I wonder when the lazy person was respected over the laborer.  Since the lazy person is not rewarded in the scriptures, I know we can say it is the flipped process.  People are calling good evil and evil good.  Look at the parable of the talents.

The parable of the talents is an excellent parable for how to operate in service.  Mattithyahu (Matthew) 25 KJV.  Particularly Mattithyahu 25:24-27 KJV shows us that investment is last.

24 Then he which had received the one talent came and said, lord, I knew that you are a hard man, reaping where you have not sown, and gathering where you have not strawed:  ( getting money or return where you did not labor.)

25 And I was afraid and went and hid thy talent in the earth: lo, there thou hast that is thine.

26 His lord answered and said unto him, you are wicked and slothful (lazy) servant, you knew that I reap where I sowed not, and gather where I have not strawed:

27 You could have at least (oughtest therefore to have) put my money to the exchangers (bankers and investors), and then at my coming I should have received mine own with usury (interest).

 "You know I get money where I do not work you could have invested what I gave you."

I think it interesting that the master is wicked but so is the servant that was lazy.  The lesson here is to work and the other workers used what he gave them to earn more.  They worked so this parable is not for investment.  The investment comes later.  We work to earn, give (according to the scriptures – we give to the righteous), and then invest. 

An accountant is not only a tax collector either, so we need to remove that term.  Why is the world so hell-bent on turning accountants into the least respected?    

I am thankful for the understanding of the revelation prophecy in today’s world.   Revelation 13:17 KJV.  If you visit my crushing fear website you can learn more about the actual meaning of “name,” “mark,” “sign,” and “covenant.”  The name and the mark mean we will think like and work according to the beast system and that is the world system.  If you are still in denial that the world system is the beast system this article will mean nothing to you.  I understand because this is for them that have spiritual eyes and ears to see the things of YAH.  Most of them did not get this far in reading unless they are looking for errors in my writing to attempt to devalue what I am showing you here.  Trying to find perfection in something does not make it true or the truth of YAH.  The people of YAH are being perfected which means no one is perfect but YAH.  Next, I write as I am speaking to what the world calls us, an average person.  I know this world conforms to their children, the university scholars, and that is not my goal because they are part of the Pharisee and Sadducee systems.

Although an accountant can be an investor, I am not a broker or a banker.  I am an administrator of accountancy.  I govern and manage accounting.  Bookkeepers work under the management of accountants and although they can be labeled accountants, they are not the managing accountants.  A financial manager is also not a managing accountant although they can be pushed into that position to oversee accounting.  Accounting is the heart and pulse of a business monitoring what happens inside the business.  The financial manager or advisor focuses on how to invest the profits once earned from income.  Capital management is another term for cash management by an accountant. 

The accounting departments manage the various parts of accounting and a tax accountant mostly focuses on taxes.  We see how taxes work so we can help you plan through the year with accounting process management.  A tax preparer is not necessarily an accountant.  Tax preparation is reactive.  Tax planning is proactive.  Most people think an accountant can help them at the end of the year pay less in taxes after they did not properly plan all year.  Normally these people are surprised by the large tax bills and blame the tax preparer for missing some sort of deduction or credit.  However, you must qualify for certain credits and deductions.  If you do not qualify there is nothing the preparer can do for you.  The tax preparer also often works under experienced accountants.

I have people go to their financial advisor for tax advice instead of their accountant or tax preparer.  Since people do not see accountants as those that analyze their business, they think we are only there for bookkeeping and therefore our prices always seem overinflated.  Although we bring your cashflow activities into one place for reporting into one place and we help you with budgeting and planning.

Financing means spending, invest, borrow, raise money (donations), or invest to earn interest and returns such as stocks, bonds, and other investment vehicles.  When someone seeks out a finance major they are seeking to invest and normally you will be direct to how to use additional funding for creating interest or some sort of return on your invested money.  As I researched what was going on with the understanding of the meaning of an accountant and financing, I see financing has taken over accounting only in wording and understanding.  Accounting is the head over financing because financing is only a portion of accounting.  Here is where people are misled thinking finance is the heart of the business.  In a couple of articles, we can see the confusion. 

Accountable means to help someone stand firm and to take an assessment of their actions, thoughts, and desires, and to direct you in a way that is profitable to you in natural and spiritual works.  In the scriptures, we see them as prophets, judges, shepherds, and other positions of YAH, but they uphold a spiritual walk to YARAH (Torah).  Since investment is the very last the world has promoted finance over Accounting.  Come out of her my people (Revelation 18:4 KJV).

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