The difference between accounting and finance is that accounting is referred to as the flow of money in and out of an institute/company/organization. In contrast, finance is a term for the management of liabilities, assets, and planning of future growth. Accounting is more about compliance with laws and standards. Finance is all about growing money and mitigating losses.
Making a choice: Accounting vs Finance:
Among accounting and finance, it’s hard to conclude which is best. If you choose the accounting field, you might have a job title as Tax Manager, Controller, Valuation Analyst, Fund Analyst or Financial Reporting Accountant. Alternatively, you could become an Auditor, Bookkeeper, Tax Accountant or Treasurer for yourself. Besides, one can become a Certified Public Accountant.
If you choose finance, you could become a financial examiner, financial analyst, personal financial advisor or investment banker. Insurance underwriting and corporate finance are also open to financing majors. In addition to the above, entrepreneurship opens a doorway for those who are into finance.
Salaries: Accounting vs Finance:
There is a wide salary range of both accounting and finance fields. At present, both fields have strong prospects. According to the Bureau of Labor Statistics (BLS), the average annual pay for a Financial Analyst in 2019 was $86,000. Between 2021 and 2024, there are huge job opportunities for Financial Analysts, and it is projected to grow by more than 12% faster than the present growth rate. Auditors and Accountants have a median pay of $72,000 annually and jobs are predicted to increase by 11% between 2021 and 2024. In India, the average salary of an Accountant is INR 3,00,000 per annum and for Financial Analyst it is INR 4,00,000 per annum.
If you’re in accounting your reporting and recording of money transactions will support the task of the finance team. In the same manner, if you work in finance, you mostly depend on the accurate work of the accounting team. Both the fields require good accounting skills and comfort with quantitative analysis. The above article gives you a basic understanding of Accounting vs Finance, there’s a lot more. If you have any questions regarding the difference between accounting and finance, comment in the below section.