What's the Difference Between Finance and Accounting?

Published on: January 11, 2023

On the surface, the terms finance and accounting may seem interchangeable. Both disciplines focus largely on money, and both disciplines allow professionals to play a direct role in the success of a business. If you are considering pursuing a career as an accountant or as a financial analyst you will want to know the key differences between a finance degree program and an accounting degree program.

What Is Accounting?

An accounting degree program prepares individuals for a career as an accountant or a role in which they are responsible for an organization's accounting. Accounting is the process of recording and reporting transactions to accurately track the daily flow of money for an organization. Not only will an accountant ensure that transactions are properly recorded and within budget, but they also will verify that the organization remains in compliance with all financial regulations and standards for their industry. An accountant also may be responsible for preparing and reviewing financial statements for their given organization. 

What Is Finance?

A finance degree program, on the other hand, is a broad-spectrum study that prepares individuals for a career as a financial manager or financial analyst. In the finance field, individuals focus more on developing a long-term financial strategy rather than managing the day-to-day transactions of an organization. Finance professionals often work to help organizations or individuals with investing and financial planning instead of budgeting. While accountants tend to focus on the past and the present, those in the finance industry are often far more focused on the future — constantly monitoring trends, analyzing economic conditions and attempting to make predictions to develop an effective, successful financial strategy. 

Accounting Vs. Finance: Key Differences

As you consider your future career path, you will want to identify these key differences between accounting and finance: 

• Accounting tracks the flow of money for an organization, while financial strategy focuses more on management and investing.
• Accounting focuses more on the past, whereas finance looks toward the future.
• Accounting programs require you to learn a set of specific skills, whereas finance encourages you to think critically and analytically to develop an effective strategy. 

These two fields may seem incredibly similar, but the reality of the matter is, there are distinct differences between the two. It's important to learn more about each field and decide which discipline is a better fit for your strengths, personality and professional goals.

Degree Options

There are two main degree options to consider:

• Bachelor of Science in Accounting — A bachelor's degree program in accounting will focus on providing you with the in-depth knowledge and specific skills you need to pursue a career as an accountant. Coursework will include accounting principles and practices, accounting ethics, business law, auditing and taxation.
• Bachelor of Science in Financial Planning — A bachelor's degree program in financial planning will prepare you for a career in finance rather than accounting. Financial planning focuses on developing financial strategies, and you will take coursework related to financial management, financial analysis, investing and more. 

What You Will Learn 

In an accounting degree program, you will learn the skills you need to become a practicing accountant for any type of organization. Not only will you become adept at recording and reporting financial transactions, but you also will learn the proper accounting practices, how to effectively budget for an organization and how to perform an audit. 

In a financial planning degree program, you will learn how to be a forward-thinker who can develop a personalized financial strategy for an organization. You will develop an in-depth knowledge of the financial industry and begin to learn how to effectively manage finances for both groups and individuals. 

Necessary Exams 

Accountants who are interested in becoming Certified Public Accountants must pass the CPA exam. It's worth noting that many states have individual CPA requirements in addition to passing the exam, so you will want to consider the requirements for the state where you intend to practice.

Financial professionals will find that there are a variety of certification exams available, depending on their interest and their intended career path. Some common financial certification exams include the Certified Financial Planners exam, the Chartered Financial Analyst exam and the Chartered Alternative Investment Analyst exam.

Skills Needed

Naturally, accountants will need to be adept at a specific set of industry skills in order to thrive. However, beyond basic accounting, budgeting and auditing skills, you also need to be a critical thinker, an effective communicator, a precise and accurate record-keeper and a punctual individual. Being able to meet a deadline while prioritizing accurate and clear accounting is necessary for this career field.

Financial planners and financial analysts not only need to have a basic understanding of the financial industry, including an in-depth understanding of investments and financial forecasting, but they also need to be aware of standard accounting principles. Financial planners must be logical, analytical, clear communicators, and forward-thinkers.

Career Options

Those who complete an accounting degree program most often go on to pursue a career as an accountant. While the career options are fewer in this field, it's important to recognize that accountants are required in nearly every type of organization, regardless of its field or size. There are many ways to personalize this career path in a way that suits your personality and interests. 

A person who completes a finance degree program may find themselves working as a financial planner for individuals who are managing their personal assets or as a financial planner for a large organization that needs someone to develop an effective financial strategy that can be implemented at their company. 

Get Your Accounting Degree

Job Outlook 

For both the accounting and finance fields, the job outlook is very good. As economic conditions remain complex and organizations strive to compete in a global environment, there is increased demand for adept financial professionals and accountants who can effectively manage the organization's money. Graduates with a finance degree or accounting degree can expect to find a job in their chosen field that meets their salary requirements and fulfills their professional goals.

How to Choose the Right Major

As you consider the major that you want to pursue during your time at Husson University, it's important to be aware of your personal strengths, interests and professional aspirations. By remaining true to yourself, you will be able to choose a major that complements your interests and prepares you for the career that you have been dreaming about.

Why Earn Your Accounting Degree from Husson?

The Husson University Online accounting degree program is known for providing students with the in-depth knowledge that they need to pursue a successful career as an accountant. Not only will you learn the budgeting and auditing skills needed for this career field, but you also will develop analytical and problem-solving skills that can be applied in any area of your life. 

For more information about our accounting degree and undergraduate certificates for this field, contact Husson University Online today.