Which Pays More: A Finance Degree or an Accounting Degree?

Are you good with numbers and, trying to distinguish which between financing and accounting degree is the right choice? Are you finding it hard to tell the difference? You are not alone. A lot of us find it very hard to tell the difference, although the truth is that there is a lot of difference between the two. This article will provide you with the necessary guidance so that you are able to make an informed choice.

What is the difference between accounting and finance?

To get an easy overview, you need to distinguish between accounting concept and finance like this:

Accounting is a narrow subject

Simply put, accounting has a lot to do with a detailed preparation of serious financial statements. Take this simple example: in a home, there is someone responsible for taking note of when the money comes in and when it comes out. The same person is responsible for making sound budgets for cash flow.

The same individual must make a mental note of how much money is at hand and whether it is enough to pay bills for a month or two. Accounting is a constant need, and when employed by a business, an accountant must be ready to handle a lot of paperwork to manage the cash flows of the business effectively.

On the other hand:

Finance is a wide subject

If you happen to be working in the finance department, you are not responsible for making the statements. Instead, you will be held liable for evaluating all the financial statements. Your job is to simply understand the financial situation of the company and make decisions that are guided by the need to do the right thing with the finances. You will at all times be answering this question: How does the business spend and invest its money?

What you need to understand to choose the right major

For easy understanding, it is easy that you break accounting in three categories, namely; auditing, tax accounting, and public accounting. One famous professor opined that when he sees students who love numbers and are talented, he prefers not just to show them the different directions the course can take but leaves them to decide on their own. He prefers asking them what they like, what they are interested in doing, and what they like doing.

How you can specialize in accounting majors

If you decide to take an accounting major, you will have to choose different directions to go. Accounting majors are divided into three different categories:

Public Accounting

This involves preparing and maintaining financial statements and records. If your character enjoys fine details and you do not mind preparing detailed and accurate statements daily, then this might be the right field for you.

Auditing

If you choose this field, you will be responsible for spending long hours checking financial records. As an auditor, you must make sure that all records are correct since you will frequently be auditing someone else’s work. You must have an eye for detail to perform exceptionally in this field. Your personality type must allow you to investigate, dig in, and handle a great level of detail.

Tax Planning

If you are planning to join this career path, you must be ready to prepare tax returns. This area also involves a lot of tax consultations and planning services, and you must be ready to comply since the job demands a lot of regulations reading. Since you can not change and memorize tax codes since they change frequently, you are needed to be a research-oriented person.

You must also be patient and eager to learn at all times and, your personality must be driven by the desire to help clients. The clients will be looking up to you for tax filing to be correctly done. They will also count on you to find legal ways that can make them save money on tax breaks. As a tax planner, you might find yourself offering financial advice.

How you can find specialization paths for finance majors

If you decide to major in finance, you are most likely to land in any of the following career areas:

Financial planning

If you have a deep interest in reading detailed financial statements, this career path might be ideal for you. As a financial adviser, you will be spending most of your time sitting down with people who get advice from you. You will be required to do corporate accounting and, you will be looking at your clients’ insurance, taxes as well as their general income.

You will be working with your clients so that you can understand their financial goals, their risk tolerance levels as well as their set timelines to achieve certain goals. You will be concerned about your clients’ plans for retirement when you consider their age, their financial elements as well as income.

You will be using your knowledge with investments, the global markets, and taxes to come up with a good investment plan that will aid your client in achieving their desired financial goals in a reasonable time frame. As a financial adviser, you will be in a position to pick the right asset for your client to invest in. Small businesses will also be contacting you to act as their financial planners.

How do you decide on a career?

To find the right footing when matters related to choosing the right career are concerned, you will need to do a little sleuthing. To fully understand how a job feels, you can act in a shadow capacity. When you shadow, you will find the perfect opportunity to learn what the job entails. While at it, do not shy away from asking questions and being honest with whether you like the job or not click new job 247. It is also imperative that you conduct proper online research to have a full grasp of the earning potential that is involved with the job.

It is also imperative that you consider your personality and ascertain, whether it is fit for the job’s typical work schedule. When you finally make the decision, you must understand that shifting might not be in your list of options. The different careers in finance and accounting have one thing in common; a need for one to have a deep understanding of numbers regularly, although they are quite different from one another.

To have an easy understanding, think of it this way: for a student to earn a Certified Public Accountant’s title, he/she needs not less than 150 hours of credit hours. If you make the correct major choice, you will be needed to spend more hours in school to earn the credit.

On the other hand, if you do not choose correctly, you might end up having hiccups when it comes to scrapping a few hours of credit that might never get applied to your field of study. If you desire to become a Finance major, once you earn your degree, you may become a Certified Financial Advisor. The course has minimal overlap in course work, and you will have adequate time to prepare for the CFA exam when compared to the CPA one. It might not be too easy to make a switch without denting the course work time since you will also be spending a lot on your tuition.

When you have already made the decision

Finance and accounting will, at all times, be important positions when it comes to influence and importance. Once you have conducted proper research and learning what your favorite job entails, you will have more confidence that the career path you choose will reward you personally and financially.

The benefit of an accounting degree versus a business degree

If you choose an accounting degree, you are more likely to get a better salary and higher job opportunities when compared to your business degree counterparts. When you study for an accounting degree, you are better equipped when it comes to having better analytical and critical thinking skills. When these skills are combined with specialized accounting knowledge, you are seen as an employee that can bring growth and value to the employer.

When you are armed with an accounting degree, you are better placed to get a managerial job when compared to someone who has a business degree. Because of your analytical skills, employers consider you as someone who already has experience with the role. You can easily start at the junior management level and, within a short period, rise through the ladder.

An accounting degree is better positioned for bigger opportunities in the job market when compared to a business degree. You might need to work harder in your studies when compared to a business degree but in the long run, it will be worth the effort and time. An accounting degree also gives you an opportunity to advance studies in different and more interesting fields of study when compared to a business degree. Jobs are under the table for those who are well qualified and ready to put in their mind at work.

FAQ

Which is better finance or accounting?

We must know how is finance different from accounting. To be specific, an accounting job can be understood as a branch of finance since a finance department makes decisions and manages the money that accounting offers. Although if one might be on top, it does not mean that it is better, both are necessary and relevant to the success of a company. They complement and depend on each other. Thanks to the accounting reports (cash flow and liquidity over a period) provided by the accounting department, the financial analyst will be able to make decisions to increase the company’s profitability. In short, without accounting, Finance simply could not exist, and without Finance, Accounting would be meaningless. In conclusion, assuming that one is better than the other is to lose focus on the synergy between these two tools.

How long does it take to become a chartered accountant?

Accountants help the most complex individuals and organizations to maintain and analyze financial data, follow tax laws and regulations, and determine how to spend money wisely. Many accountants are licensed as certified accountants. Accountants whose jobs include tasks such as reporting to the SEC must obtain a license, but even if a license is not legally required for the type of accounting we want to do, getting one can improve our employment prospects and earnings prospects since it proves what we have achieved by high accounting standard education and experience. For most accounting jobs, a license is required, which generally takes four years to complete. Once we are out of school, we can take an entry-level position as a staff financial accountant or junior internal auditor. After we gained some experience in our entry-level role (usually two years), we can scale other positions in an accounting firm.

What are the different roles of a finance manager in a company?

A current finance manager is expected to fulfill different duties. The traditional functions are: protecting and preserving the organization’s assets Allocation by minimizing risk and bookkeeper. They must balance capabilities, costs, and service levels to meet basic financial goals. But it is increasingly relevant that the Financial Manager is a tactician, helping to set a plan of action and guidance. They also demand to stimulate the workers’ behavior throughout the organization, introducing a way of seeing things beyond their own area, to achieve financial and strategic aspirations. In resume, this variety of roles makes the financial planner job more complex than ever.

What types of accounting jobs are available for advanced degree graduates?

An accounting degree will allow graduates to work where they wish to be. The biggest cities need accounts to run in business, that is why accounting professionals can fit in a lot of places. They can specialize in any of several different areas of a professional accounting career with many different kinds of companies. That is public accounting involves consulting with clients to ensure that they meet their tax and auditing obligations under tax law.

  • A public accountant, known as Forensic Accountant, can investigate financial crimes. To discover the facts behind the numerals, they must improve their investigative skills to dig more profoundly. Forensic accounting is indispensable for a country.
  • Another type is an Auditor, they review the financial statements, financial reports, and the balance sheet of business for quality and compliance with federal and state regulations. The company properties, bank accounts, expenditures, profits, and others will be also analyzed.
  • For the other side, a Budget Analyst works with clients like private agencies, nonprofits, government companies; these entities need bits of help to design and implement a business budget, this job requires a graduate who understands the business environment at any financial accounting department to think and act strategically for the future of a company.
  • Equally important a Staff Accountant may work for corporate finance, a government agency, or a huge accounting firm. They operate with accounting information and financial information to preparing taxes, monthly reports, and financial statements. Also, handle bookkeeping, accounts payable, among other duties.
  • Not less important in accountancy, a Tax Accountant must show a financial accounting report and keep up with ever-changing federal and state regulations and understand business concepts so he can advise his clients effectively.

Which are the different job roles in the finance arena? 

In finance, there are many responsibilities. Both inside and outside organizations, they are designed to push for reduced costs, increased income, and maintain control. There are many roles that finance professionals must do within this area, but four common ones will be specified and explained in this manner:

  • An Operator: serves in the finance area efficiently and effectively, providing several services to the organization, such as financial analysis, financial planning, and among others.
  • A financial analyst: is in charge of analyzing and studying the company’s current financial situation, in order to establish an interest in profitability, liquidity, and the risk assumed by the company in the purchase process.
  • A Strategist: It plans operations to achieve the objectives previously set.  This role implies aligning a financial strategy with the business strategy to stimulate growth. It also provides comprehensive support for long-term investment decisions.
  • A Catalyst: It selectively executes and conducts changes in the finance function inside a company. It can direct the reduction of costs, pricing strategy, procurement improvements, and other processes.