Accounting and Finance—What Are the Differences
Accounting and finance have grown spectacularly in the recent years. Managing money and financial documents today has been advanced. But if asked, most people cannot tell the difference between finance and accounting. Understanding the differences between the two is fundamental regardless of your career path and status in life. You can get accounting assignment help when busy or experiencing writer’s block
So what’s accounting?
Accounting entails the measure and transit of financial and non-financial data of businesses and corporations. Accountants must know the rudiments to proper financial transactions analysis, summarization, and reporting to ease regulations, oversight, and tax collection.
What about Finance?
Finance refers to creating, managing, and studying money and investments. It’s the process of forecasting, lending, budgeting, borrowing, and saving money.
How do the Two Differ?
Accountants create financial reports and records of different financial transactions. They investigate financial documents and ease the preparation of tax returns. Finance professionals’ work is to manage the money flowing in and out of an organization.
Known as money managers, finance specialists help in researching, managing, and directing the financial transactions of an organization. They evaluate the liabilities attached to an organization’s or individual’s finances and help them plan their business finances.
The two are qualified and accredited to work for government agencies, financial businesses, and organizations. In simple terms, those looking for tax solutions should hire accountants while those looking to better manage their money should hire financial money managers.
Education Skills for Both
Finance and accounting students are skilled and qualified differently. Accountants must have a bachelor’s degree and CPA credentials. Accounts should undertake and complete 150 postsecondary credits to earn the certified public accountant badge. A bachelor’s degree in finance is also a requirement for anyone to become a financial examiner, analysist or professional. Financial advisors and business managers may need to have a master’s degree.
Accountants and finance professionals can take different career paths after graduation. Careers in finance include risk management, fun management, and investment management. A finance specialist can analyze a business’s financial risk and help prevent it. They can also develop and apply effective investment strategies for organizations and individuals.
Those who take a career in accounting can help businesses in forensic, management, and public accountants. Management accountants can analyze financial documents, audit finances, and plan expenses to help business achieve their performance goals. Forensic accountants are skilled to unearth tax frauds and other different types of frauds. Public accountants are skilled to help in creating financial documents for individuals to help them balance tax returns and sheets.
How Finance and Accounting Specialist’s Salary Differ
Accountants and finance managers don’t earn a meager salary. They don’t earn the same amount, though. Reports done previously confirmed that the growth of financial analyst’s jobs will be steady until 2024. As of 2014, the bureau of labor statistics estimated the annual salary of financial analyst at $78,650.
The accounting jobs growth was estimated at 11% starting from 2014 to 2024. The average annual salary of an accountant was estimated at $65,950. There has been a frequent rise and reduction of the salary for both finance specialists and accountants as from 2014.
Accountants have a big role in helping the success of finance specialists. The reports and records accountants produce help finance specialists to plan and streamline a business’s or individual’s financial growth. Success in any or both of the fields require you have enough skills and be comfortable with what you do. You’ll be better off having a bachelor’s degree in accounts and finance if you want to be a successful accountant.
Use this article as a reference to choose your career path. You can seek for guide from career advisors and your lecturer, as well.