Accounting vs. Economics: What's the Difference?

[jatin]

I often hear people comparing accounting and economics, but I’m still a bit confused. Is accounting mainly about recording and reporting money for a business, while economics looks at the bigger picture of markets and decisions? Can anyone explain the difference simply, maybe with an example?

 

[alexie]

Accounting serves as the "language of business" by recording, summarizing, and reporting specific financial transactions for a single firm. In contrast, economics is a broader social science that investigates how societies allocate scarce resources, assess market patterns, and make decisions at both the micro (individual enterprises) and macro (national/global) levels. Accounting offers basic data, and economics uses this information to understand and anticipate broader economic behaviors and policies.