Accounting Career vs. Finance Career
If you are exploring your career options and you are wondering what is the difference between an accounting career and a finance career, this blog will help you. I am going to analyse what are key differences or similarities between the two career options (Accounting and finance jobs). Both of these fields have their own unique advantages and can offer rewarding career paths.
What is Finance Career:
Finance is all about money management, investments, and creating value for shareholders. Job options for finance professionals include working in wealth management, financial analysis, and investment banks, etc. Finance professionals work for individuals, companies, or governments. Finance professionals identify investment opportunities, source funding, invest money and create value for shareholders. One important objective of their job is to ensure that they earn the highest possible return from given expected risk
What is Accounting Career:
Accounting is all about recording, summarising, and presenting financial information. Accountants work for individuals, companies, firms, or governments. Accounting professionals are responsible for the accurate recording of business transactions and the preparation of financial statements. They must also ensure that account balances are correct.
Clients and Employers:
Who are clients of accounting and finance professionals? Individuals, companies, NGOs and governments are examples of their clients. As far as employers are concerned, following are examples of employers for both types of professionals.
For finance professionals, possible employers may be retail or investment banks, insurance companies, manufacturing, retail, or service industries.
A big number of accounting professionals work in accounting, tax, and audit firms. They get valuable training from there. Accounting professionals also work in manufacturing retail or service industries.
Role With Financial Statements:
When it comes to financial statements, there are major differences in the working of accounting and finance professionals. Accounting professionals prepare financial statements, while finance professionals analyse those financial statements.
Book keepers collect all invoices, receipts and other financial data and record it in the system. The accountant then summarises that data into meaningful financial statements. if this job sounds good to you, then accountancy could be a profession for you.
On the other hand, if you like to analyse financial statements, and interpret them so that you can conclude how good a company is performing financially, then finance will be a good fit for you.
Types of careers: Accounting vs Finance Career
An Accounting and finance career can be lucrative. Think about your career selection which is more interested.
Following are examples of finance jobs
- Personal finance
- Corporate finance
- Public finance
- Behavioural finance
- Social finance
Following are examples of accounting jobs.
- Financial accounting
- Management accounting
- Public accounting
- Forensic accounting
- Tax and audit.
Forward-Looking vs. Backward looking
Accountants prepare financial statements from historical data. Therefore, accountants are backward-looking by nature. When financial statements are issued, those figures are, at least, a couple of months old.
Finance professional’s job is more forward-looking. They have to predict and make estimates, what going to happen in the future.
So it depends on you, if studying past is something you like, then it’s a good sign that accounting is your thing. If you enjoy thinking about the future, making estimates and predictions, they finance career will be good for you.