What’s the Difference, and Which is Right for You?
You have a way with numbers and a desire to pursue a career in these majors. But what is the difference between finance and accounting, two of the most common degrees? The quick answer is that an accounting major is focused on concrete numbers within budgets, audits, taxes and more, while a finance major has a wider range, covering an array of specializations in business, economics, and banking. Read on to learn more about each career path and which is best for you.
What is Finance?
Finance is the use of financial data and information to manage and analyze financial trends in regards to investments and opportunities. Financial advisors, for example, focus on returns on investment (ROI) and strategies that maximize investments. Some day-to-day duties of a financial analyst include evaluating current and historical financial data, studying business and economic trends, and recommending individual investments and portfolios based on research and trends.
Common jobs in the finance world include: Commercial Banking, Financial Consultant, Financial Trader, Hedge Fund Manager, Investment banker,
Common places of employment for finance jobs include: Commercial Banks, Credit Unions, Mortgage Institutions, Finance Companies, Regulatory Agencies
What is Accounting?
Accounting is the process of keeping financial accounts, whether they are budgets, audits, or taxes. With a concentration on numbers and financial reports in the business world, accountants and auditors manage the day-to-day cash flow within an organization. Some typical responsibilities of an accountant or auditor include examining financial statements, computing taxes, organizing and maintaining financial records, and suggesting ways to reduce costs, enhance revenues, and improve profits.
Common jobs in the accounting world include: Accountant, ,Auditor, Payroll Administrator, Risk Assessment, Tax Advisor
Common places of employment for accounting jobs include: CPA Firms, Public Accounting Firms, Corporate Businesses, Finance Companies, Tax Agency
What is the Difference Between Finance and Accounting?
Accounting is a narrower field that focuses on professional processes to manage numbers and accounts, while finance uses the same information to analyze potential growth patterns in order to strategize company finances. Although these fields sound similar and utilize similar skills, they have their differences.
The accounting vs finance difference comes down to how you want to interact with a business’s finances. An accounting degree student will utilize professional principals and processes to manage numbers rather than influence them. On the other hand, a finance degree student will be more interested in financial strategy and control, and how they can wisely invest based on financial trends.