Accounting is a dynamic and an applied subject. Even though it is an independent study, it has a relationship with other subjects. Accounting has a relationship with other disciplines management, economics, mathematics, computer science, statistics, law, political science, and engineering.
The subjects with its relations are very much close are discussed below;
Accounting and Management
Accounting and Management are very closely related.
Because management depends entirely on accounting for information in financial affairs to make decisions. Accounting provides all kinds of financial information in project planning and implementation of a business concern.
As a result, management can take decisions comfortably regarding project planning and implementation.
The scope of Management is extended from individual life to various fields of social life. The overall development of trading, non-trading, government, semi-government, autonomous bodies, etc. depends on management.
In the modem age the responsibilities of making decisions, planning and management have been shifted from owners to professional-managerial persons.
For this reason, all functions of managers are directed to the development of business concerns.
In this respect Accounting helps the management in taking timely decisions, interpreting and analyzing overall and information based matters.
Managers cannot take the best and most dynamic course of action for their respective business concerns without the information-based financial statements and other statements of accounts.
The success of management fully depends on accounting information.
Accounting and Economics
The relation of Economics with Accounting is very close. Economics is a science related to human activities to fulfill demand with limited wealth.
Economics analyzes how people earn and spend, how purchasers and sellers behave under different circumstances etc.
On the other hand; accounting records transactions of income and expenditure measurable in terms of money and provides necessary and relevant information to purchasers and sellers for taking decisions.
Economics studies the behaviors of buyers and sellers as a whole.
Accounting provides all required financial information to individual buyers and sellers for taking an economic decision.
So, these two subjects are interrelated. In this perspective bringing about a synthesis between the concept of economics and accounting, the concept of social sciences is being applied.
Accounting and Mathematics
Accounting and Mathematics are closely related. Accounting is the language of business.
On the other hand, Mathematics is the language of Accounting. At different stages of accounting addition, subtraction, multiplication, and division of arithmetic are applied.
Accounting expresses all its transactions and events of financial changes in the language of mathematics. At all stages of accounting i.e. in preparing journal, ledger, trial balance, and financial statements mathematical principles are applied.
For this reason, the processes of keeping accounts become easy and short. So, Mathematics is an indispensable part of Accounting.
Accounting and Computer Science
There is a close and effective relationship between Accounting and Computer Science. The word “computer” has been derived from the word compute. The word “compute” means counting and the meaning of the computer is counter.
It is possible to solve mathematical problems involving millions or even billions of figures within a few seconds by computer and these can be preserved in it as well.
Accounting accounts of various transactions are to be recorded and the results are to be determined.
It takes huge time and labor and even then the accuracy of Accounting cannot be a hundred percent ensured. The computer has eliminated all these obstacles.
Because using all kinds of information and data relating transactions as per definite table and program in a computer, preparation of accurate accounting is possible within a very short time.
It saves time and labor. Besides, with the help of a computer, preparation of various accounts as per need, preservation, and verification of the validity of ratio are possible very quickly.
In the developed countries of the modem world, the application of computers is growing fast in solving accounting problems. In our country also the application of computers is increasing in the field of accounting problems.
Therefore, the relation between Accounting and Computer is very close.
Accounting and Statistics
Accounting and Statistics are deeply related.
The main object of these two sciences is to make arithmetical figures understandable and logical and to present these in the form of statements making them usable to owner, directors or all others concerned.
It makes the act of planning and decision-making easier.
The main function of statistics is to collect classify, analyze the quantitative data of various events and present them to the individuals or organizations concerned.
For this reason, a statistician presents the data in quite a short form of reports to the individuals or organizations concerned so that they can make a decision depending on this information.
On the other hand, in Accounting after completion of some accounting processes of transactions, final accounts and financial statements are prepared and based on various information of such financial statements; the owners and the directors of the organization concerned can take decisions.
Accounting and Law
The prevailing laws of a land control trade and commerce mostly.
So, Accounting and Law are closely related. The accountant and accounts officer must have a clear knowledge of partnership law, company law, tax law, industrial law, cooperative law, and other relevant laws.
Because accounts of an organization are kept following accepted principles and by relevant laws.
For example, accounts of every company are kept properly and accurately in light of company law. In partnership business accounts are maintained in the light of the partnership act or agreement as the case may be.
Keeping accounts, auditing of accounts of a company are mandatory as per the specific provision of the companies act. Similarly, accounts of other organizations are to be kept by the provisions of the relevant law.
In this context, lawyers are to know the provision of laws relating to methods of accounting, direction and controlling.
Otherwise, it is impossible on their part to extend their help in settling conflicts and cases properly. Therefore, both Accounting and Law are closely related subjects.
Accounting and Political Science
The main object of Political Science is to ensure law and order for establishing rule of law in society. Political science gives directives in achieving welfare for the people of the society as a whole.
For this reason issues like national income and expenditure; national development expenditure and probable income from national prospects, etc. arise from political science.
Keeping proper accounts of this national income, expenditure and providing information in this regard are the tasks of Accounting.
Besides maintaining accounts and auditing of accounts of government tax administration, the expenditure of various projects, income tax, etc. are performed by accounting.
Therefore there exists a close relationship between Accounting and Political Science.
Accounting and Engineering
Among the important branches of modem social sciences accounting and engineering. These two subjects jointly work in the process of production and building.
A special type of plant and machinery is needed in factories. These plants and machines are made by the engineers engaged in engineering work.
The estimation regarding types of goods and quantity of goods to be produced and the amount of expenditure to be involved in machinery etc. of concern is to be accounted for.
For this ‘ reason the entrepreneurs, directors, managers of a production-oriented business concern should know about engineering.
The function of an accountant is to find out the ratio between money invested in plant and machinery and results arising out of it and present the same to the managers in the form of statements.
Without the knowledge of engineering, an accountant cannot provide accurate information regarding plant and machinery
So, in the modem age of complex and large-scale production, the knowledge of accounting as well as engineering is essential for achieving the target by running a business successfully.