THE RELATIONSHIP BETWEEN BUSINESS FINANCE AND ACCOUNTING

The contemporary economic theory and practice often discuss the problem of business finances and possibilities of acquiring and utilizing financial sources, the question of expended costs, expected revenues and accounting as well as the results of the economic efficiency and mutual relationships among these categories. However, some differences in interpreting individual basic concepts arise at various levels of confrontation, new ideas, approaches and tendencies. This paper is aimed to present the problem and basic characteristics of business finances and accounting as well as to point to their mutual action. Inasmuch as the present period is characterized by a rise and an expansion of the single market, the comparable and well-grounded information about individual participants of the common market is necessary. Key words: business finances, accounting, accounting system, harmonization of accounting. Business finance and accounting is not the same thing. Accounting is concerned with financial record keeping, the production of periodic reports, statements and analyses, and the dissemination of information to managers and, to some extent, to investors and the world outside the business. It is also much involved with the quality, relevance, and timeliness of its information output. Obviously financial decision-makers will rely heavily on accounting reports and the accounting database generally. Knowledge of past events may be a good pointer to the future, so reliable information on the past is invaluable. However, the role of the financial manager is not to provide financial information but to make decisions involving finance. In smaller business