Branches are separated from the main organization. Departments are attached with the main organization under a single roof.
Branches are the outcome of tough competition and expansion of business. Departments are the result of fast human life.
A branch is a subdivision of a company and is a geographical classification. On the other hand a department is a classification based on the function, activites or goods.
Branches are of different types like dependent, independent and foreign. There is no such classification in department because all are common under the same roof.
Allocation of branch common expenses does not arise. Allocation of departmental common expenses is a tough job.
To find out the net result of the organization, the reconciliation of different branch account is a main job.In departmental accounting, no reconciliation is necessary because there is a central account division.
A department is a technical area of a office which is under the same premises while the branch is an extension of the office with more or less the same features.
The level of responsibility and oversight is greater with branch accounting than it is with departmental accounting.
and in accounting
Departmental accounting and branch accounting give businesses different levels of control over their finances. Departmental accounting is centralized and common in corporations and other types of non-banking businesses. Branch accounting is more common in banking and other industries where business is conducted in more than one location. Both essentially perform the same types of accounting functions
One way branch accounting and departmental accounting differ is the amount of manpower required to perform the jobs. With departmental accounting, most of the accounting procedures can be performed in-house and might be able to use an individual accountant or a small team that oversees the accounting for all departments.