Finance vs. Accounting: Which Degree is Right for You?
Finance professionals work in careers such as investment banking, wealth management, and financial planning and analysis (FP&A).
Accounting professionals work for individuals, in-house at corporations, or on behalf of other businesses at a public accounting firm .
Employers and Client
Finance– Banks (retail, commercial, and investment)– Insurance companie– Research companie– Operating companies (regular businesses)
Accounting– Public accounting firms (that audit large companies)– Personal tax filing firm– Operating companies (businesses)
Role with Financial Statement
If you enjoy collecting and organizing large amounts of data, such as all of a company’s invoices, receipts, and financial records, then being an accountant could be a good fit for you.
If you prefer analyzing and interpreting information to show how well a company is performing or coming up with ideas about how it could do better, then finance could be right for you.
Accountants, by nature, are backward-looking because they take historical financial information to prepare their reports. By the time their reports come out, the figures could be several months old.
Finance professionals, by contrast, are forward-looking because they have the nearly impossible task of trying to predict the future.
Corporate Function
Finance– Funding the busine– Raising capital (debt and equity)– Optimizing the firm’s Weighted Average Cost of Capital– Seeking the best risk-adjusted return– Corporate strategy– Budgeting and forecasting– Mergers and acquisitions
Accounting– Bookkeeping– Tracking of revenues and expense– Internal reporting– Financial reporting– Auditing– Risk management
Finance vs. Accounting Decision
The finance vs. accounting decision can be a tough one, especially if you haven’t worked in either industry before. At the end of the day, you should carefully consider all of the information provided above – including all the similarities and differences – and decide which option best fits your personality, your interests, and your goals.
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