What are the differences between Finance or Accounting a career in accounting and a career in finance this is the topic of this article.
Welcome back guys my name is Bill Hanna and I’m the Financial Controller and this website is all about giving you Finance or Accounting.
Which earns more accounting or finance?
The tools and tips to Finance or Accounting supercharge your accounting and finance career the good news is that the job market for accounting and finance is expected to grow.
At a pace of about 6% annually for the next 10 years and so this is an exciting time for you to get into accounting and finance and grow your career.
Now let’s get into the differences between accounting and finance as a career and the difference number one has to do with the goal Finance or Accounting.
What’s the goal of a Finance or Accounting financial accountant versus the goal of a financial analysts the goal of the accountant is to get.
The data in and create financial statements and so the accountant is concerned with gathering the transactions of the business and creating financial statements.
study accounting and finance?
As opposed to the goal of a financial analyst which is to analyze this data and look at it from this point in time forward and project out.
The performance of the business the second difference has to do with the nature of the work so the accountants work by definition or by nature is looking.
At the past at the history Finance or Accounting and gathering the financial data and information and summarizing that into financial statements.
Now the financial analyst is Finance or Accounting concerned with the future so they are always looking at this point in time going forward and forecasting.
The performance of the business the third difference has to do with the risk what risk is the accountant trying to mitigate all the time and concern with all the time and the risk.
Here is a risk of Finance or Accounting material misstatement that is the financial statements that the accountant is producing has a material misstatement or error.
This is opposed to the risk that the financial analyst is dealing with which is the risk between a variance between.
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What they are projecting for the future and reality so our financial analyst is always making assumptions about the future.
The risk here is that some of these assumptions may be wrong difference number four between an accountant and a financial analyst has to do with the type of problems.
You’re trying to solve and so typically an accountant is trying to solve problems around accruals revenue recognition making sure the accrues for expenses.
That have not yet impacted the cash balance but the service has been incurred or booking revenue in the right period and just generally following US GAAP.
Which is generally accepted accounting principles now the kind of problems the financial analyst will be dealing with will to do with modeling and creating assumptions about.
Is it wise to study accounting?
The future such as seasonality customer behavior and customer loss or churn in the future the first number five has to do with compensation in the u.s. in 2019.
The median salary for an accountant was 71 thousand dollars a year which is not too bad compared to a financial analyst which had a median salary of 86 thousand dollars a year.
So as you can see there’s about $15,000 gap which is about 15 to 20 percent difference between what accountants and financial analysts.
The first number six has to do with certification now the gold standard for accountants is to become a certified public accountant or CPA.
Now I’m a CPA myself and for sure had a huge impact on my career increase my salary increase my.credibility and just have been a huge impact.
Why no one is going into accounting?
My life studying for and passing the CPA exam has been one of the most difficult tasks that I had to endure in my professional life but lucky for me Finance or Accounting.
I found out about Roger CPA Review which is my opinion the best review course out there for CPA exam so if you’re preparing for the CPA or if you are taking.
A different course right now and looking for an alternative I highly recommend Roger his style of teaching is highly energetic my biggest problem was studying.
The CPA is the material is extremely boring and Roger has a way of making it very exciting and very interesting promotion that Roger is running right Finance or Accounting.
Now for his CPA review class make sure if you sign up for the course of sign up using this link so I can get the referral credits now let’s look at the day in the life of an accountant versus.
What personality type are most accountants?
A day in the life of a financial analyst and I think the best way is to look at a month in the life versus a day in the life because a month will give you a better view on.
What’s going on in each of their professions for the accountant their months usually begins with the first 7 days of trying to close the period Finance or Accounting.
So that will entail billing going over invoices from vendors making sure we’re booking all of the expenses even though we have not received the vendor invoice yet.
Accruing for these expenses and things like that and that will entail having meetings with within the accountant team and the meetings probably you spend the 25% of your time in meetings trying to close.
The books and trying to make sure you’re following all the rules comparing period over period in terms of expenses and revenue to make sure.
You’re catching any anomalies now if you compare that to the month in the life of a financial analyst Finance or Accounting.
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Why accounting and not finance?
You’ll see that a financial analyst spends maybe about 56 to 60% of their time in meetings and now their meetings are different.
The accountants meetings are usually internal their bidding within the accounting team most of the time for the financial analyst most of the time.
They’re meeting with other people within the company from the sales team to go over revenue forecasts and assumptions or meeting.
The operation team and trying to capture the forecasts for expenses and things like that now there are three reasons for me to choose accounting / finance.
As a career the first of which is my own Finance or Accounting personality as an introvert and so I interact with my smaller accounting team most of the our time.
I interact in the larger group and the company from revenue and operations on a smaller scale so most of the time I’m just interacting with five or six people within my own team.
What are the golden rules of accounting?
I spend small amount of time interacting with the rest of the company and that suits my.personality more as an introvert I think.that finance suits more.
A extrovert type personality where you’ll be spending most of your time interacting with people from all around the company Finance or Accounting.
Now the second reason for me to choose accounting was that it’s rule-based and so when it’s rule-based I have a set of rules to follow.
I know what I’m doing exactly so I have rules which is for accounting its US GAAP which is in the u.s. the generally accept the accounting principles.
As long as I’m operating within these rules I know that I’m doing the right thing and there’s no ambiguity it’s mostly black and white there’s a little bit of gray but mostly black and white.
So this is what I enjoy the most and that’s why I chose accounting now the third reason for me to choose accounting / finance has to do with the stress level.
Does finance fall under accounting?
I believe that the stress level from working in accounting is lower than finance the reason being is that you are concerned with two things in accounting.
Which is accuracy and timeliness and as long as you’re accurate in financials that your reporting and the timing of these of the reporting you Finance or Accounting.
Will be Finance or Accounting fine whereas in finance there are other factors from outside that can impact your work because you’re always making assumptions about.
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