Accountancy Definition and Meaning
Accountancy Definition – “It refers to the profession or the duties performed by an accountant”
Most people confuse accounting with accountancy. Some even use these words interchangeably. However there is a significant difference between the two.
Accounting basically deals with recording of transactions, classifying and summarizing them, analyzing and interpreting the results to the stakeholders. However, Accountancy concerns with various duties of a accountant. For example book keeping, accounting, auditing, etc. This implies that accounting is a subset of accountancy.
Related Financial Terms of Accountancy
- Accounting Definition – Meaning and Importance
- Gross Profit Definition – Meaning, Example and Importance
In order to get a clear picture of accountancy definition, let’s discuss an example.
Assume, ABC is a company that appoint Ram as the accountant. Now he is given the task of recording all the transactions that business enters. In addition to this he is also given the task of arranging the data in the meaningful manner. At the end of the financial year, company also approach Shyam who is a CA and is ask to audit the account of the company.
Therefore, in the example given above, Recording transaction plus arranging data comes under Accounting. Whereas the task that Ram and Shyam are given comes under Accountancy.