Accounting or Finance, Which One Should I Study?

Accounting or Finance, Which One Should I Study?


Thinking about studying Accounting or Finance?

Deciding on what to study can be difficult.

In this article, we’ll help explain their differences and career path options.

So Accounting or Finance, Which One Should I Study?

Accounting and Finance offer a wide range of interesting career options. Finance is seen as better since it is in higher demand and pays more than Accounting.

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Accounting Bubble Gum

Students looking to study Finance should be interested in economics, high numeracy and technical skills, analytical thinking, excellent presentation and communication skills.

Through a Finance major you can look forward to careers paths in financial advising, counselling and planning for investors or community organisations; funds management; management consulting; retail, commercial and investment banking; treasury management; trading and dealing.

 

Students looking to study accounting should be interested in numbers, the communication of financial information, corporate finance, software programs and data analytics.

Through an Accounting Major, you can look forward to career paths in Taxation, Corporate Accounting, Auditing, Bookkeeping, Cost Accounting, Accounts management.

So now we have answered the main question let’s further explore Accounting and Finance.

Accountants, what do they do at work?

Accountants and auditors prepare and examine financial records, identify potential areas of opportunity and risk, and provide solutions for businesses and individuals.

They ensure that financial records are accurate, that financial and data risks are evaluated, and that taxes are paid properly.

They also assess financial operations and work to help ensure that organizations run efficiently.

Accountants and auditors typically do the following:

  • Examine financial statements to ensure that they are accurate and comply with laws and regulations
  • Compute taxes owed, prepare tax returns, and ensure that taxes are paid properly and on time
  • Inspect account books and accounting systems for efficiency and use of accepted accounting procedures and identify potential risks for fraud
  • Organize, analyze, and maintain financial records
  • Assess financial operations, identify risks and challenges, and make best-practices recommendations to management
  • Suggest ways to reduce costs, enhance revenues, and improve profits

Accountants and auditors may use technology, such as artificial intelligence (AI) and robotics process automation, to increase their productivity.

Automating some routine tasks makes these workers more efficient by allowing them to focus on analysis and other high-level responsibilities.

In addition to examining and preparing financial documents, accountants and auditors must explain their findings.

This includes preparing written reports and meeting face-to-face with organization managers and individual clients.

Many accountants and auditors specialize, depending on their employer.

Some work for organizations that specialize in assurance services (improving the quality or context of information for decision-makers) or risk management (determining the probability of a misstatement on financial documents).

Other organizations specialize in specific industries, such as finance, insurance, or healthcare.

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Finance Manager, what do they do at work?

Financial managers spend much of their time analyzing data and advising senior managers on ways to maximize profits

Financial managers are responsible for the financial health of an organization.

They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Duties

Financial managers typically do the following:

  • Prepare financial statements, business activity reports, and forecasts
  • Monitor financial details to ensure that legal requirements are met
  • Supervise employees who do financial reporting and budgeting
  • Review financial reports and seek ways to reduce costs
  • Analyze market trends to maximize profits and find expansion opportunities
  • Help management make financial decisions

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Accounting or Finance, who earns more?

Finance Managers earn more than Accountants, with an Accounting median wage of $73,560 compared to a Finance Manager of $134,180 per year.

If you are ambitious and willing to work hard and climb the ladder, Chief Financial Officer (CFO) earn a median wage of $185,460 per annum.

Accountants can also join the big Accounting firms that pay high wages for senior roles.

Accountants and Finance qualified people if motivated enough can also start up their own practice, and if successful take in higher wages.

The wages discussed are median wages and should be taken as a rough guide.

The reason I say this is that wages vary depending on whether you work for a private or public organisation, your geographic region, the size of your business, and your industry (some pay more than others).

According to the Labor Bureau of statistics In May 2020, the median annual wages for accountants and auditors in the top industries in which they worked were as follows:

Finance and insurance $78,600
Management of companies and enterprises $76,230
Accounting, tax preparation, bookkeeping, and payroll services $73,180
Government $72,260

Most accountants and auditors work full time. Longer hours are typical at certain times of the year, such as for quarterly audits or during tax season.

According to Labor Bureau Statistics in May 2020, the median annual wages for financial managers in the top industries in which they worked were as follows:

Professional, scientific, and technical services $154,790
Management of companies and enterprises $149,300
Manufacturing $135,820
Finance and insurance $130,600
Government $117,940

Most financial managers work full time, and some work more than 40 hours per week

Finance roles are expected to grow by 15 per cent compared to Accounting of 4% over the next 5 years.

Final Thoughts

Finance and Accounting majors are popular at College.

The reason is they offer interesting, varied career paths that are in demand and offer high wages.

Both Finance and Accounting suit students who are comfortable with maths and have attention to detail.

Deciding on what to study is an important one.

Speak with trusted friends and family, even consult with a career consultant for advice.

Consider your strengths and weakness, likes and dislikes before deciding on the career path to study.

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References

  • https://www.bls.gov/ooh/business-and-financial/mobile/accountants-and-auditors.htm
  • https://www.bls.gov/ooh/management/mobile/financial-managers.htm