With the competitive labor market in the corporate world and ballooning university tuition, students are struggling to decide on which majors offer better ROIs. Accounting and finance are two of the most competitive majors obtained by those in the corporate industry.
As closely related programs, Accounting and Finance utilize the same fundamental and complex tools and are anchored on the same principles. However, they serve distinct purposes and have different career outcomes. Finance offers a broader view, leading to roles like financial analyst and planner.
On the other hand, accounting focuses on practical work like preparing taxes, advising business owners about tax shelters, and preparing weekly payroll reports.
What is Accounting?
Accounting is known as “the language of business.” It is a multidisciplinary subject, drawing on topics from other fields like law, statistics, information technology, and economics.
Students who pursue this major will know business processes such as storing financial information, analyzing economic trends, and ensuring compliance with relevant regulations.
Earning an Accounting degree equips students with skills in accounting, auditing, financial statements, and bookkeeping principles. Accredited programs prepare students for certifications like Certified Public Accountant (CPA) after completing required course hours and exams.
Accounting Specializations
A major in accounting offers three main specializations:
- Public accounting: Involves meticulously preparing and maintaining financial statements, a profession suitable for individuals who enjoy detail and can handle the daily task of preparing accurate statements.
- Tax Planning: Involves tax preparation, planning, and consulting services. It requires extensive research, patience, and a proactive personality. Clients rely on accurate filing, tax-saving strategies, and sometimes financial advice from tax planners who offer financial advice.
- Auditing: Involves checking financial records, ensuring accuracy, and being detail-oriented, often auditing others’ work. The ideal candidate should be able to investigate and handle high levels of detail.
Education Requirements for Accounting Professionals
A bachelor’s degree is required for entry-level accounting jobs. However, if you want to pursue higher-level roles and take on more job responsibilities for higher pay, you should obtain a CPA title with at least a Master’s of Accounting degree.
The CPA, which requires 150 postsecondary credits, is beneficial for those who want to work in managerial positions. Meanwhile, CPAs who wish to teach in universities should earn a Ph.D. in Accounting.
Accounting Popular Career Paths
Accountants and Auditors earn an average of $78,000 annually. The employment market in this field is expected to grow up to 4% between 2022 and 2032, or 126,500 estimated yearly job openings.
Due to its multidisciplinary nature, an Accounting degree leads to high-paying job positions. Some of the most popular accounting careers for bachelor’s degree graduates include:
- Budget Analyst: Focus on creating, managing, and analyzing organizational budgets. Budget analysts help ensure that financial resources are allocated efficiently.
- Cost Estimator: Estimates the costs involved in designing, producing, and implementing various projects. Cost estimators play a crucial role in helping organizations make informed financial decisions.
- Financial Analyst: Analyze financial data and trends to provide insights and recommendations for decision-making. Financial analysts may work in budgeting, forecasting, or investment analysis.
- Staff Accountant: Prepare financial statements, maintain financial records. and ensure regulatory compliance.
- Staff Auditor: Involves examining and evaluating financial statements and internal controls of organizations to ensure accuracy and compliance with regulations.
- Tax Reviewer: Specializing in tax preparation and compliance, tax reviewers ensure that individuals and businesses adhere to tax laws and regulations. This role may involve working for accounting firms or in-house tax departments.
On the other hand, students with a master’s degree and a CPA title can pursue higher-level roles, such as:
- Lead Accountant: Oversee the whole accounting process within an organization. This may include managing a team of accountants, ensuring accurate financial reporting, and implementing internal controls.
- Auditing Manager: Responsible for leading audit teams, coordinating audit activities, and ensuring compliance with auditing standards. They play a crucial role in managing the audit process.
- Senior Budget Analyst: Take on more complex budgeting responsibilities, often working closely with top-level management to develop financial plans, analyze budget variances, and provide strategic financial recommendations. They may also lead a team of budget analysts.
A growing number of accountants are pursuing jobs they can do from home. This work arrangement is possible after obtaining the essential credentials, licenses, and certifications required for independent, work-from-home accounting jobs.
Is Accounting the Right Path For You?
An Accounting Career Is For You If:
- You like working with numbers and have a strong attention to detail.
- You like organizing and analyzing financial information.
- You are good at problem-solving and critical thinking.
- You prefer the stability of managing finances for a local business.
An Accounting Career Is Not A Great Fit if:
- You prefer creative or more dynamic work environments with constant social interaction.
- You need frequent changes and variety in your daily tasks.
- You don’t like dealing with detailed data for extended periods.
What is Finance?
The finance major is best suited for students who want to gain a broader focus on the business industry. Unlike accounting, where students are trained to assist organizations and individuals with their specific, day-to-day financial demands, finance majors will receive training to help companies make sound financial decisions that can spur expansion.
Finance has various subfields that give students more chances to align their studies with their interests, including Quantitative Finance, Mathematical Finance, and Computational Finance. Typically, students who enroll in Finance programs gain the abilities for entry-level jobs.
Graduate programs in Finance qualify you for high-level positions in financial analysis, management, investing, financial planning, and ethics.
What’s Your Finance Focus of Study?
Finance majors have two main career prospects:
- Traditional Finance: Traditional finance professionals work in corporate finance, investment banking, financial analysis, and asset management. They advise companies on capital raising, managing financial activities, managing investment portfolios, and conducting research to provide recommendations to clients or company management.
- Financial Planning: Collaborating with clients to comprehend their financial goals, evaluate their existing circumstances, and create specialized programs. It consists of debt management, retirement planning, investment strategies, budgeting, insurance, and continuing counseling to assist clients in adjusting to life and financial changes.
Education Requirements for Finance Professionals
Similar to accounting careers, Finance requires a bachelor’s degree for entry-level prospects. dealing with financial markets, financial securities, and financial economics.
Representing the highest academic credential in the sector, A PhD in Finance and a DBA in Finance involves comprehensive mathematical, financial, and economic research. Doctorate of Finance programs produce the most qualified researchers, economists, CFOs, and professors.
Finance Popular Career Paths
Finance graduates are in high demand because their skills and expertise are required to help businesses expand their operations and increase profitability. Finance professionals earn an average pay of $96,220 per year and are expected to grow 8% between 2022 and 2032. Finance majors can find employment in industries like banking, investing, and insurance.
Finance careers you can pursue with only a bachelor’s degree:
- Financial Analysts: Evaluate the performance of bonds, equities, and other investments to help people and corporations make wise financial decisions.
- Financial Examiners: Make sure that all regulations about financial institutions and transactions are followed. They check balance sheets, assess risk, and recommend maintaining compliance.
- Fundraisers: Work for nonprofit organizations to raise funds for various projects and initiatives. They may organize events, write grant proposals, and cultivate relationships with donors.
- Insurance Underwriters: Assess insurance applications and decide whether to offer coverage. They evaluate the risks, review the policy terms, and determine premiums.
- Market Research Analysts: Examine market circumstances to assist businesses in determining prospective markets, comprehending consumer preferences, and creating marketing plans.
- Personal Financial Advisors: Offer financial guidance to individuals, helping them manage investments, plan for retirement, and achieve their financial goals.
- Property Appraisers and Assessors: Estimate the value of real estate properties for sale, taxation, or insurance purposes. They analyze market trends, inspect properties, and prepare appraisal reports.
Master’s in finance holders can pursue higher-level roles, such as:
- Portfolio Manager
- Financial Manager/Director
- Investment Banking Associate
- Vice President of Finance
- Chief Financial Officer (CFO)
A Finance Career Is For You If:
- You like analyzing financial markets and economic trends.
- You like making strategic financial decisions.
- You have an entrepreneurial spirit.
- You thrive on steering large entities through the ebbs and flows of the market.
- You like conducting extensive research.
A Finance Career Is Not A Great Fit if:
- You prefer a routine and predictable work environment.
- You need clear and well-defined tasks without much ambiguity.
- You don’t want to work behind a computer, analyzing portfolios and investment options.
Key Differences: Accounting vs Finance
| Accounting | Finance | |
| Skills Required | * Account reconciliation * Balance sheets * Budgeting * Financial reporting * Financial statements * Generally Accepted Accounting Principles (GAAP) | * Budgeting * Customer service * Economics * Financial modeling * Financial planning * Financial reporting * Financial statements * Product management |
| Best Fit For | Individuals who want routine work and focus on practical work tasks. | Individuals who want to help businesses grow. |
| Job Responsibilities | Monitor and assess a company’s finances. | Organize and allocate an individual’s or company’s resources, taking care of things like financing distribution and expense monitoring. |
| Typical Employers | * Banks * Charities * Commercial and corporate organizations * Governmental bodies * Private accountancy firms * Professional services firms | * Banks * Corporations * Insurance companies * Investment banks * Wealth or asset management firms |
| Average Salaries | $78,000 | $96,220 |
Challenges within the Accounting and Finance Fields
The global economic landscape is vastly changing and becoming more competitive to break into. While these industries are no strangers to change and challenge, the current landscape presents a unique combination of regulatory complexity, technological disruption, cybersecurity threats, and economic uncertainty for incoming professionals.
We aim to help you prepare yourself for either field by listing the top hurdles and obstacles that professionals in accounting and finance encounter.
The top issues in Accounting include:
- Lack of IT literacy
- Accounting automation
- New skill requirements
In Finance, professionals struggle with:
- Regulatory complexity
- Tech disruption
- Cybersecurity threats
Today, everyone is reliant on technology, which has resulted in increased cases of cyberattacks within financial institutions. The sector is at serious risk from cybersecurity risks like ransomware attacks and data leaks.
Safeguarding client information and financial resources is crucial, so finance professionals today are encouraged to take cybersecurity courses to improve security measures.
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