Difference Between Branch And Department

Difference Between Branch And Department

The main dissimilarities or difference between branch and department can be pointed out as follows:

1. Meaning

Branch: A segment of a business company located outside the head office

Department: Different functional area within the business organization

2. Classification

Branch: Branches are geographically classified (like different branch offices in different cities of the country)

Department; Departments are technically classified such as production department, finance department, personnel department etc.

3. Location

Branch: Separate location from head office

Department: Within the head office

4, Purpose

Branch: Purpose of business expansion and to face competition

Department: To improve operational activities and business performance

    Also Read: 

Difference Between Branch And Subsidiary

5. Accounting

Branch: Branch accounting system is maintained

Department: Departmental accounting system is maintained

Branch Vs Department (Comparison Chart)

Basis For Difference	Branch	Department
Introduction	Outlet or segment of a organization located outside the main office	Functional area of the company within the organization
Classification	Geographically classified	Technically classified
Location	Outside the head office	Within the head office
Purpose	Business expansion, providing better services etc.	Improve organizational efficiency
Accounting System	Branch accounting	Departmental accounting

I hope this post is helpful to understand the difference between branch and department and to make comparison between them.