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- Written by: CPA Credits
- May 31, 2023
- Category: Career
Introduction
Have you ever asked yourself, which is a better career for me: Accounting or Finance? Choosing the career that works best for you is one of the most important decisions you will make in life. For people who like working with numbers and enjoy business, finance and accounting are two of the most important fields in business. They have a direct impact on how companies operate, which means that anyone who wants to work in this industry should consider pursuing either finance or accounting as their career path.
Accounting is responsible for keeping track of all financial transactions within an organization. It’s also responsible for preparing reports that show how much money has been spent and earned over time, as well as providing information about other aspects of the company’s finances such as assets and liabilities (the difference between what you own versus what you owe). Accountants often work closely with auditors who perform independent checks on their work; however, accountants can also be certified public accountants (CPAs) if they pass an exam after completing four years at university plus two years’ experience working under another CPA firm before passing another exam given by The American Institute of Certified Public Accountants (AICPA). For more info on this, check out: https://www.aicpa-cima.com/home
Finance
Finance is a broad term that encompasses many different jobs and career paths. You can find finance roles in the corporate world, government, nonprofits and even academia.
Finance professionals typically work with money in some capacity–whether it’s managing assets or providing advice on how best to spend them. They might work with companies’ budgets or help set up new ventures by raising funds through investments and loans. In addition to these roles are those who analyze financial data (like accountants) or provide advice on how best to invest money (like stockbrokers).
The educational requirements for becoming a finance professional vary depending on what type of job you want–but most require at least an undergraduate degree in business administration or another relevant field like economics or mathematics. Some employers also require graduate degrees such as MBAs; others may offer training programs once you’ve been hired into entry-level positions. For more about MBA programs check out: https://www.usnews.com/best-graduate-schools/top-business-schools/mba-rankings
Accounting
Accounting is the process of recording, classifying and summarizing financial information. It’s a vital part of any company or organization, but it can also be a great career path for those who want to work in finance.
Accountants are responsible for ensuring that companies are following proper accounting procedures and reporting standards. They’re often tasked with preparing tax returns as well as helping businesses make decisions about their finances based on past performance data. Accounting professionals usually specialize in one area of accounting such as auditing or tax preparation; however some may choose to become generalists who have knowledge across all areas of the field including financial reporting, budgeting/forecasting etc..
The educational requirements vary depending on your preferred specialization within the field (e..g., audit vs tax). A bachelor’s degree from an accredited university with courses covering topics such as business law and mathematics will give you good preparation for entry-level positions at companies like Deloitte & Touche LLP where they offer internships during summer break before starting full-time employment after graduation. While earning the CPA license requires 150 credits, there are now online platforms like cpacredits.com that help students earn these credits more flexibly and affordably than ever before.
Comparing Finance and Accounting
As you can see, the two fields have a lot in common. Both are highly analytical and require strong math skills, as well as knowledge of financial concepts like interest rates and risk management. They also both require an understanding of accounting principles and how they apply to different industries.
However, there are some important differences between them:
- Finance is more quantitative than accounting; it requires more advanced math skills than accounting does–you’ll need to be able to do things like calculate standard deviation or run regressions on your own without needing help from others (though if you get stuck there are plenty of online resources available).
- Finance also tends to be more theoretical than practical; while many accountants work directly with clients’ businesses or organizations, most finance professionals spend their time analyzing data rather than interacting directly with people who need financial advice or services.
Advantages of Accounting
Accountants have a number of advantages over their finance counterparts. First, accounting jobs are more stable and offer greater job security. Accounting firms tend to be less volatile than banks or investment firms, so you’re less likely to find yourself out of work during an economic downturn.
Second, accounting offers more diverse career opportunities than finance does; you can choose from a wide range of specialties within the field (auditing, tax preparation and planning) depending on your interests and aptitudes. Thirdly, accountants report higher levels of job satisfaction than do their finance counterparts: according to one survey by Vault (a career website), 69% of accountants say they like their jobs compared with just 55% for financial professionals! Finally–and perhaps most importantly–accounting pays better than finance: according to PayScale’s latest salary data (March 2018), median base salaries were $60K per year for accountants versus only $54K per year for entry-level financial analysts
Disadvantages of Accounting
- More educational requirements. Accounting is a field that requires a lot of schooling, and most people don’t enter the profession until they’ve completed at least a bachelor’s degree in accounting or finance. It’s also possible to get an entry-level position with only an associate’s degree, but this will limit your job prospects and salary potential.
- More demanding work environment. The hours are long and the pay isn’t always great, but if you love numbers and want to be part of something bigger than yourself–like helping companies grow their revenues–then accounting may be right for you!
- Specialized skills required: As with any other job, there are some skills that make someone better suited for certain positions within an organization (or even within certain industries). In this case it would be financial analysis skills such as forecasting cash flow projections using Excel spreadsheets; these types of tasks require experience working with large amounts of data stored in various formats (e-mail attachments vs hard copies etc.).
Advantages of Finance
- You’ll have a higher salary potential.
- You’ll have more opportunities to work with large corporations.
- Your career advancement potential is greater than that of an accountant, especially if you choose to go into corporate finance or investment banking.
Disadvantages of Finance
- More competitive job market. The finance industry is more competitive than accounting, so it’s harder to get a job in finance.
- Higher risk of job loss. If you choose a career path in accounting and your company goes bankrupt or closes down, you can find another job easily because there are many companies that need accountants. However, if you choose a career path in finance and your company goes bankrupt or closes down, it will be more difficult for you to find another job because fewer companies need financial analysts than need accountants (and even fewer want people who have been out of work for long periods).
- Specialized skills required for success as an analyst include knowledge about financial statements; understanding how markets work; knowing how businesses operate; being able to interpret numbers correctly; being able to communicate effectively with other people at all levels within an organization; having good judgment when making decisions based on incomplete information
Conclusion
Choosing the right career for you in business, whether it be in accounting or in finance is a big life decision. If you’re a finance major, you may be wondering whether accounting is worth your time. After all, it’s not as glamorous or lucrative as finance.
However, if you look at the facts and figures, it becomes clear that accounting is actually a better career path than finance. This is because:
- Accounting offers more job security than finance does. It’s true that some industries are more stable than others–but generally speaking, there are fewer layoffs in accounting than there are in banking or trading jobs (which tend to go through boom-and-bust cycles). Plus, even during recessions like we saw in 2008-2009 when many companies were forced out of business altogether due to their poor management decisions (such as Lehman Brothers), accountants still had jobs!
