Although there are many similarities between finance and accounting, they are two distinct disciplines. Do you have a keen interest in financial figures? If yes, then choosing a career in accounting or finance can be a wise option. But, choosing between the two degrees can be difficult, but with a few tips, you can choose one. In this guide, you’ll get a clear overview of the two career fields and which of the two is suitable for you.
Difference Between Finance Vs. Accounting
The main difference between finance vs. accounting are:-
Those who work in finance focus on planning and directing the organization’s financial transactions.
However, those who work in accounting focus on recording and reporting those financial transactions.
|Clients||Individuals, businesses, governments||Individuals, businesses, governments|
|Main Employers||Public accounting firms & corporations||Banks & corporations|
|Financial Statements||Prepares them||Analyzes them|
|View Point||Backward looking||Forward looking|
|Focus||Accuracy & reliability||Insights & analysis|
|Business Purpose||Communicating financial position||Focus on adding value|
What is Finance?
Finance is a comprehensive term related to managing money that includes budgeting, forecasting, saving, lending, and borrowing. The finance industry comprises three subcategories personal finance, corporate finance, and public finance.
Careers in Finance
Careers in finance may include:
- Financial broker
- Investment banker
- Financial planner
- Financial manager
- Financial advisor
- Financial analyst
The financial advisors evaluate, control, or govern the finances, investments, and assets of an organization to provide profitability. Working in the finance sectors gives exposure to working with other organizations such as government agencies, banks, investment firms, services, stockholders, and suppliers.
What is Accounting?
Identifying, recording, and communicating an organization’s economic result is accounting. The main areas of specialization in accounting, according to Investopedia, are financial accounting, managerial account, and cost accounting. The professionals in accounting make use of a standard set of rules and principles, known as the GAAP. GAAP extends as generally accepted accounting principles for tracking and reporting on business financial transactions. Also, they manage the general ledger, cash flow, and tax obligations.
Accountants have to measure business activities, process the information into reports, and impart decision-makers’ results.
Careers in Accounting
Careers in accounting include:
- Accounts clerk
- Tax accountant
- Cost accounting manager
- Financial reporting accountant
- Technical accounting manager
According to a 2016 Robert Half Survey, the CFOs value both hard and soft skills equally when filling positions. They include Excel, ERP experience, SQL, Microsoft Visual Basic, and Business Intelligence Software in hard skills. More so, the soft skills include communication, leadership, and customer service.
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