Accounting and Economic-Financial Analysis in Business Management. Economic and Legal Studies

Accounting is considered historically the oldest part of the economic sciences, having originated with the first human communities. The origins of accounting can be found in the theoretical concepts of the social sciences. However, as it evolved, accounting developed its own theory and methodology subsequently implemented in the practice of economic sciences in the discipline of finance. The concepts, views and theories developed in the accounting system were reflected in legal regulations, including the shape and principles of preparing financial statements. The difference between financial analysis and accounting is particularly evident in the decision-making process. Accounting gathers and presents data on the basis of an ex-post approach (something has happened and is reflected in the records), while the analyst (manager) assesses the situation of the company on the basis of these data, analyses the company’s environment and makes decisions not only on the current basis, but also on a strategic basis (planning – on the basis of an ex-ante approach, making future decisions on the basis of historical data – ex-post).