Accounting vs. Finance Degree: How to Choose Your Path

Academically reviewed by Thomas Francl, MBA, CMA, GSD

Did you know that the Bureau of Labor Statistics projects an 8 percent growth in business and financial operations jobs from 2020 to 2030, adding around 750,800 new jobs? This surge is driven by an expanding economy and complex regulatory environment, making skills in finance and accounting more valuable than ever. As you think about a degree in accounting vs finance, it’s important to understand the unique roles and impacts each field has in the business world.

Both accounting and finance are crucial to the success of any business, but they serve different purposes. Think of accounting as the language of business. It’s all about tracking, reporting, and analyzing financial information. Accountants ensure financial records are accurate and taxes are paid correctly and on time. On the other hand, finance takes this financial data to strategize, plan, and manage assets and liabilities, focusing on future growth and sustainable cash flow. While accountants handle the day-to-day management of financial reports and records, finance professionals use that information to make forecasts, analyze trends, and advise on investment decisions.

Understanding these differences is important to decide which path resonates best with your career goals and interests in the dynamic business world. Whether you’re drawn to the detailed-focused nature of accounting or the strategic planning of finance, both fields offer rewarding opportunities and are essential to the fabric of any business.

Table of Contents

• Should You Study Accounting or Finance?
• What is Accounting?
• What is Finance?
• Career Opportunities
• Should I Study Accounting or Finance at the Graduate Level?
• Making the Right Choice: Accounting vs. Finance Degrees

Should You Study Accounting or Finance?

Choosing between an accounting or finance degree can be pivotal for many aspiring professionals. Both fields are essential to the business sector but appeal to different interests and career paths, making a choice not just about what you want to study but where you see your career heading. 

Accounting

If you have a sharp attention to detail, enjoy working with numbers daily, and are strongly interested in regulatory standards and compliance, accounting might be your path. Accountants are fundamental to a company’s financial health, as they carefully record, report, and analyze financial transactions. This role is vital for ensuring accuracy and providing the factual basis for businesses’ most important financial decisions.

Finance

On the other hand, if you enjoy analyzing market trends, making strategic investment choices, and planning financial strategies, then a finance degree might be a better fit for your goals. Finance professionals look at the bigger economic picture, using accountant data to assess risks, manage investments, and ensure a company or client’s financial growth and health.

Both paths offer rewarding careers with strong prospects but require different skill sets and personal interests. Accountants often focus on details and historical data, while finance professionals are geared toward future possibilities and broader financial planning. Your career goals might also influence your decision: do you see yourself as a future CFO benefiting from a solid grounding in finance or as a Chief Accounting Officer, where deep expertise in accounting would be indispensable?

Ultimately, the choice between accounting and finance should reflect your personal strengths and career aspirations. Think about what excites you most about working in business, and use that passion to guide your educational journey. Whether you’re interested in the precision of accounting or the strategic nature of finance, both fields offer valuable and fulfilling career opportunities.

What is Accounting?

Accounting is often regarded as the systematic process of recording, reporting, and analyzing financial transactions. Here are some essential aspects of accounting:

• Precision and Compliance: Accountants are tasked with ensuring financial accuracy and adherence to laws and regulations, which are critical for maintaining trust and legality in business operations.
• Tax Expertise: One of the central roles of accountants involves managing and preparing tax returns and ensuring that companies or individuals comply with tax regulations efficiently.
• Financial Reporting: Accountants develop key financial documents, such as cash flow statements, balance sheets, and income statements, which indicate a business’s financial health.
• Audit and Assurance: Many accountants specialize in auditing services, providing independent verification of financial statements to ensure accuracy and compliance with accounting standards.
• Career Pathways: From forensic accounting to management accounting, the field offers diverse specializations that cater to various interests within the broader financial landscape.

What is Finance?

Finance deals with managing, creating, and studying money and investments. Key aspects include:

• Financial Analysis and Planning: Finance professionals analyze economic trends and market behaviors to forecast future conditions and advise on investment strategies.
• Capital Management: A significant part of finance is finding efficient ways to manage a company’s or individual’s capital to maximize earnings and reduce risks.
• Investment Strategies: Finance experts often identify and manage investment opportunities. They assess various assets like stocks, bonds, and real estate for potential growth.
• Corporate Finance: In corporate settings, finance professionals focus on decisions regarding mergers and acquisitions, capital structure, and investment opportunities to support organizational growth.
• Risk Management: A big part of finance is spotting and managing potential risks to an asset’s return. Experts use sophisticated models to minimize these risks and keep finances secure.

Career Opportunities

When it comes to the business world, both accounting and finance professionals are crucial for their ability to manage and strategize around financial systems. Understanding the career opportunities in each field can help you decide which path aligns best with your personal and professional aspirations.

Accounting Careers:

Accounting offers a stable and varied career path with numerous opportunities for specialization. Here are some popular roles:

• Public Accountant: Often working for an accounting firm, public accountants serve various clients and manage a wide range of financial documentation, including audits, taxes, and financial planning. The work environment can be dynamic, with opportunities to work with diverse industries.
• Internal Auditor: These professionals review their company’s financial operations to ensure compliance and efficiency. Working mostly within corporate offices, internal auditors help identify risks and recommend improvements.
• Tax Accountant: Specializing in preparing tax returns and advising on tax strategies, tax accountants play a critical role in helping clients comply with legal requirements. They often work long hours during tax season.

Accountants may also delve into niches like forensic accounting, which involves investigating financial discrepancies and fraud. According to the Bureau of Labor Statistics (BLS), the average starting salaries for accountants vary but typically range from $40,000 to $60,000 annually, depending on geographic location, educational background, and the specific sector.

Finance Careers:

The field of finance is noted for its lucrative pay scales and the analytical nature of its work. Popular finance roles include:

• Investment Banker: These professionals help companies and governments raise money by issuing stocks or bonds, and they also provide advice on mergers and acquisitions. Investment banking is fast-paced and can involve long hours, particularly in larger cities where financial activities are concentrated.
• Financial Analyst: Financial analysts evaluate the performance of various investments, such as stocks and bonds, to advise businesses and individuals on investment decisions. They usually work in offices but may travel to meet clients.
• Financial Planner: Working directly with individuals, financial planners help manage personal finances, from investments to retirement planning. They need strong interpersonal skills as much of their job involves advising clients on personal financial decisions.

Those in finance might specialize in areas such as corporate finance, which focuses on managing a company’s capital, or venture capital, which involves funding promising startups. Starting salaries in finance also vary, with the BLS reporting an average range from $50,000 to $70,000 annually. These figures can significantly increase with experience and success in the field, especially in high-stakes areas like investment banking.

Both accounting and finance careers offer promising paths filled with professional growth and specialization opportunities. Whether you lean towards the detailed and regulated world of accounting or the dynamic and high-impact realm of finance, both fields offer substantial rewards and challenges.

Professional Associations

Joining professional associations in accounting and finance offers valuable resources, networking opportunities, and certifications. These organizations support career growth and keep professionals updated with industry trends and standards. In this section, we highlight key associations that can enhance your professional journey in these fields.

Accounting

• American Institute of CPAs (AICPA): The AICPA provides a range of services, including professional development, ethical standards, and advocacy for Certified Public Accountants.
• Institute of Management Accountants (IMA): The IMA offers the Certified Management Accountant (CMA) credential and focuses on advancing the management accounting profession.
• International Federation of Accountants (IFAC): IFAC promotes high-quality international standards and supports the global accountancy profession.

Finance

• CFA Institute: The CFA Institute offers the Chartered Financial Analyst (CFA) certification and is dedicated to leading the investment profession globally.
• Financial Planning Association (FPA): The FPA provides support and resources for financial planning professionals and promotes high standards of professional competence and ethical practice.
• Global Association of Risk Professionals (GARP): GARP focuses on advancing the risk profession through education, training, and the globally recognized Financial Risk Manager (FRM) certification.

Essential Skills for Success in Accounting and Finance

Both accounting and finance professionals need a core set of skills that enable them to navigate their respective fields effectively. Here are the essential skills required for each:

Skills for Accounting Professionals:

• Analytical and Problem-Solving Skills: Ability to analyze financial data and solve complex problems is crucial, especially when ensuring compliance and accuracy in financial reports.
• Meticulous Attention to Detail: Precision is key in accounting to ensure the accuracy of all financial records and the compliance with regulatory standards.
• Strong Communication Skills: Accountants need to explain financial information in a clear and concise manner, both in writing and when speaking.
• Proficiency in Accounting Software: Familiarity with software like QuickBooks, Xero, and other financial management tools is essential for modern accounting practices.
• Research and Investigative Skills: For roles such as forensic accounting, the ability to research and investigate financial discrepancies is vital.

Skills for Finance Professionals:

• Advanced Analytical and Problem-Solving Skills: Critical for forecasting, risk assessment, and making strategic financial decisions.
• Quantitative and Financial Modeling Skills: Essential for analyzing financial data and building models to predict future financial scenarios.
• Effective Communication and Presentation Skills: It’s important to explain complex financial ideas and concepts in a way that non-experts can easily understand.
• Strong Research Skills: Staying current with market trends and economic factors is crucial for making sound financial decisions.
• Negotiation and Interpersonal Skills: Especially important in fields like investment banking, where securing deals and managing client relationships are part of the job.

Both fields share a foundation in strong analytical capabilities, but the application of these skills can vary significantly. Accountants often focus on historical data and precision, while finance professionals are more oriented toward future outcomes and strategic analysis. Each role requires a unique mix of technical skills and soft skills, highlighting the variety of career paths available in the business world. Whether you are meticulously reviewing financial statements or forecasting market trends, these skills will equip you to handle the challenges and opportunities that come with a career in accounting or finance.

Should I Study Accounting or Finance at the Graduate Level?

Choosing between a graduate degree in accounting or finance involves carefully considering your interests, skills, and lifestyle preferences. Here’s how to decide which path might be the best fit for you:

Interests:

• Detail-Oriented Tasks: If you find satisfaction in handling precise, detail-oriented tasks, a graduate degree in accounting (Master of Accountancy) may be ideal. This field focuses on the detailed management of financial records, ensuring accuracy and compliance.
• Big-Picture Analysis: If you’re more intrigued by strategic analysis and looking at the broader economic picture, a degree in finance, such as a Master of Business Administration in Financial Management, might be more appealing. Finance involves analyzing market trends, investment opportunities, and economic forecasts to guide decision-making at higher levels.

Skills:

• Numerical and Data Analysis: Both fields require a strong aptitude for numbers and data analysis. Whether you’re auditing financial statements or forecasting market trends, these skills are foundational.
• Communication and Interpersonal Skills: While important in both fields, these skills are particularly critical in finance, where explaining complex financial strategies to clients or stakeholders and negotiating deals are routine tasks.

Lifestyle Preferences:

• Work Environment and Hours: Accounting often offers more predictable work hours, especially for positions in corporate environments or government, making it suitable if you prefer a more structured routine. However, it’s worth noting that tax season can significantly ramp up the workload for accountants.
• Travel and Pressure: Finance roles, particularly in areas like investment banking or fund management, might involve more travel and higher pressure, dealing with market fluctuations and investment risks. These positions often require a high level of stress management and the ability to thrive in a dynamic setting.

Choosing the right graduate program should align with what excites you most about the field, the skills you want to develop, and how you envision your daily professional life. Both accounting and finance offer robust career paths with the potential for fulfilling, well-compensated roles across industries. As you consider your options, consider where your passions lie and what environment will make you thrive. For more detailed program information and to help guide your decision, explore the Master of Accountancy and Master of Business Administration in Financial Management at National University.

Making the Right Choice: Accounting vs. Finance Degrees

As we wrap up our exploration of accounting and finance degrees, it’s clear that both fields offer distinct pathways with their own sets of challenges and rewards. Accounting focuses on recording financial transactions, ensuring accuracy, and maintaining compliance with laws and regulations. It’s ideal for those who enjoy detailed work and have a keen eye for accuracy, which is critical in ensuring a business’s financial integrity. On the other hand, finance is all about managing money, handling debts, and planning for future growth. This field suits those who excel at analyzing data to make strategic decisions and thrive in environments where they can evaluate investment opportunities and economic trends.

When choosing between these two impactful fields, consider your interests and skills. Do you prefer the structured world of accounting or the fast-paced field of finance? Each degree will develop different skill sets suited to specific career goals.

National University offers comprehensive programs in both disciplines for those ready to dive deeper. Whether you’re drawn to the Bachelor of Science in Accounting or the Bachelor of Science in Financial Management, or considering a specialized Bachelor of Business Administration in Finance or Accounting, each program aims to prepare you with the knowledge and skills to succeed in your chosen field.

Taking the time to understand your personal and professional desires will ensure that you choose a degree that meets your educational needs and sets you up for a successful and satisfying career. Explore your options, consider your future, and take the next step toward a rewarding career in either accounting or finance.