Accounting vs Finance Degree: What's the Difference? (2024)

What does an Accounting Degree Cover?

Like finance majors, accounting students will start in the same boat as everyone else, taking required general education courses and then the foundational business classes before things get more focused.

Emily Bratcher of U.S. News and World Report says, “As they progress in their studies, accounting majors can expect to take introduction to accounting and taxation courses as well as principles of microeconomics and macroeconomics. Math classes like calculus and statistics are part of the curriculum, too. More advanced courses accounting majors take include computer-based systems, operations management, business law, and theory classes for both accounting and auditing. Business communication and public speaking are often part of accounting program curriculums as well.”

Pros

An accounting major has a lot of the same kind of upside as finance as a degree. The editors of Indeed.com provide a list of specific advantages:

1. Clear career path

Accounting is a highly practical field. You either know things like how to record sales, issue invoices, and manage payrolls, or you don’t, and no good accounting program will let you graduate until you’ve learned these skills precisely. That makes applying for jobs and moving up the ladder a lot more straightforward than in other fields. The chances to grow are also clear to see as most companies have a well-established structure in accounting. Entry-level jobs like junior auditors, controllers' assistants, or staff accountants generally last six months to a year before accomplished accountants move up, and that is generally clear when you begin at a company.

2. Job stability

Like finance, any accounting job is a field in high demand because every employer that deals with money needs someone to count it for them and help advise them on where to spread it around. Indeed found that, according to the U.S. Bureau of Labor Statistics, accountants and auditors have a projected job growth of 7% by the year 2030. This figure is higher than the projected 5% growth for other financial specialist positions, and across the whole country, that 2% is a big advantage.

3. Competitive wages

Salaries for an accounting career can range from just above the national average for all jobs to higher percentiles. The average national salary for auditors is $61,119 per year, according to Indeed. Financial controllers and financial managers are on the high end for accounting positions, with annual national average salaries of $88,252 and $95,613, respectively.

4. Employment opportunities in the accounting field as well as entrepreneurial opportunities

Jobs for graduates with degrees in accounting number among some of the most highly sought-after positions available. They cross a number of fields and levels of promotion. Careers in accountancy include:

  • Forensic accountant
  • Public accountant
  • Cost accountant
  • Staff accountant
  • Government accountant
  • Chartered accountant
  • Managerial accountant
  • Finance manager
  • Chief financial officer
  • Certified internal auditor
  • Investment banker

If none of those careers suit you, an accounting degree can also be a good first step to entrepreneurship, as one of the foundations of owning your own business is knowing how to handle your books.

Cons

Just like finance, accounting has aspects you should think about carefully before entering the field. According to Indeed.com, some of the significant possible disadvantages of going from accounting student to accountant are:

1. You may need to pursue advanced education

As with finance, while a bachelor’s degree will qualify you for plenty of job opportunities, the highest positions in the accounting field will require at least a master's degree. You may also go for continuing education courses or take classes to get certified for certain positions.

2. You may experience a heavier workload at specific points during the year

Accounting is generally a five days and 40 hours per week sort of field, but just like a sport, it has a busy season. From January through mid-April, as people are working on their tax returns, accountants need to be prepared to work long hours to accommodate the demand. The benefits are important, as accountants can do a great deal of their yearly business during this first third of each year, but you need to be prepared for the extra workload during this time.

3. The work is math-intensive

Orderly thinking, patience, and attention to detail are key to succeeding in accountancy. No matter what, though, you can’t escape that it’s a field dominated by math. Even if you have a talent for mathematics, be sure you really take satisfaction from working with numbers before you commit to a career as an accountant.

What are the similarities?

There is a great deal of carryover between finance and accounting as important pillars of business. How do the two resemble one another?

Khanom compares the two this way: “There is a nice harmony between the two majors. To put it in an imperfect analogy, finance is like driving a car, and accounting is the mechanics of the car. As a driver, you have to make decisions—when to stop, when to accelerate. You also need to make sure your brakes are working, you have sufficient fuel, and that your engine is not overheating. Finance involves a lot more decision-making than accounting: which firm to invest in, when to expand the business, and whom to lend money to. These decisions will be a lot more successful if you have a strong understanding of accounting.”

The harmony between the two majors means that you can take courses from each and tailor your education to fit the career you are most interested in. “If you want to pursue a career in banking, corporate finance, or investment analysis, you should take more accounting classes in addition to your finance classes,” Khanom said. “If you want to get into personal wealth management or derivatives trading, there is less focus on accounting.”

Take the first step to a career in finance or accounting

Whichever major you decide is best for you, be sure you find a great school to get your degree. Look for a place like North Central College: with faculty who have both the theoretical expertise and industry experience to help you learn what you need; with internship opportunities and extracurricular activities to help you apply what you’ve learned; and strong support to help you connect and network with employers so you can get started early on your future.

Find out more about North Central College and their programs in finance and accounting today.

Jacob Imm is the associate director of communication in the North Central College Office of Marketing and Communications. He has 12 years of collegiate communications experience and has worked with hundreds of college students. He has a bachelor’s degree from the University of Notre Dame and a master’s degree from Northern Illinois University.

Sources:

Emily Bratcher, U.S. News and World Report. https://www.usnews.com/education/best-colleges/accounting-major-overview

Casey Mcclain, Quotf. https://quotf.com/in-the-know-pros-and-cons-of-finance-degrees/

Indeed.com editorial team. https://www.indeed.com/career-advice/finding-a-job/accounting-field-pros-and-cons

Accounting vs Finance Degree: What's the Difference? (2024)

FAQs

Accounting vs Finance Degree: What's the Difference? ›

An accounting degree student will utilize professional principals and processes to manage numbers rather than influence them. On the other hand, a finance degree student will be more interested in financial strategy and control, and how they can wisely invest based on financial trends.

Is it better to major in finance or accounting? ›

The field of finance offers more career choices but also less predictability. In some cases, careers in finance might offer higher pay. Careers in accounting can offer more predictable and stable work but less pay in many cases.

Who gets paid more finance or accounting? ›

The National Association of Colleges and Employers conducted an analysis and determined that the average annual salary for accounting degrees in the United States is generally around $57,511, and the average annual salary for finance degrees is $58,464.

Why choose an accounting and finance degree? ›

With a degree in accounting or finance, there are plenty of careers you can go into. You could become an actuary, providing clients with financial forecats or a chartered accountant, record keeping, auditing and advising.

Is a finance degree worth it? ›

High earning potential: Many jobs in finance offer high salaries and growth potential, making it a lucrative career choice. Diverse career opportunities: With a finance degree, you can work in various roles and industries, from investment banking to risk management to financial planning.

Is accounting or finance more math? ›

Accounting and Finance are more about analyzing the financial transaction with little math problems. In accounting, the most common math procedure that could be used is the basic arithmetic while for the Finance a bit complicated math formula can be used particularly in the investing and quantitative analysis.

Is accounting a difficult major? ›

Earning a degree in accounting can be challenging due to the complex nature of the subject matter, however it is not necessarily categorized as math-heavy. Students who are dedicated, diligent, and hard-working can successfully earn an accounting degree.

What branch of accounting makes the most money? ›

Top 10 Highest Paying Accounting Careers
  • 1) Financial Controller.
  • 2) CMA (Certified Management Accountant)
  • 3) Chartered Accountant.
  • 4) Bank Branch Manager.
  • 5) CGA (Certified General Accountant)
  • 6) Senior Accountant.
  • 7) Financial Analyst.
  • 8) Credit Supervisor.
Oct 31, 2022

Which field of finance pays the most? ›

The top 5 highest paying jobs in finance are investment banking, hedge fund management, CFO roles, private equity, and actuarial positions. These careers typically offer substantial salaries and the potential for significant bonuses.

Is finance a hard major? ›

Is Finance a Hard Major? Finance is a somewhat difficult major. The difficulty with finance comes down to its concepts that students would not have experienced before in their lives, the financial lingo in the field, and the concentration of math in the subject.

Why accounting is one of the best majors? ›

Get a Chance to Work in Different Industries

Though accounting is a specialized business degree, it equips students with skills that can apply in various areas of business and across several industries. Accounting graduates can transfer their skills to a variety of career paths.

Why an accounting degree is worth it? ›

Accounting degrees are specialized business degrees that are also very flexible. “An accounting degree gives you the ability to see the entire financial picture, while also being very analytical and detail-oriented,” says Annette Hoelzer, Lead Faculty Accounting at Franklin University.

Is accounting and finance a hard degree? ›

Is an accounting and finance degree hard? Despite what many people say, a degree in accounting and finance is no more or less difficult than other subjects. A lot of people assume it is a hard degree just because it requires working with numbers! Like any other course, it involves a lot of work and study.

Is finance harder than accounting? ›

Is finance harder than accounting? Accounting relies on precise arithmetic principles, making it more complex, whereas finance requires a grasp of economics and accounting without as much mathematical detail.

What are the cons of a finance degree? ›

They can include high stress, big responsibility, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry is generally quite cyclical.

How to choose between finance and accounting? ›

The main difference between finance and accounting is in their scopes and goals. At its most basic, accounting focuses on looking at past transactions to determine current financial positioning while finance deals with analysis and strategy to support future growth.

Is it smart to major in accounting? ›

An accounting degree lays the foundation for many careers in business, including entrepreneurial ones. Once you gain experience and establish business contacts, you may consider starting your own business. Whether in tax accounting or consulting, you can pursue several avenues with an accounting background.

Do finance or business majors make more money? ›

Graduates who major in business analytics earn the most ($66,000 on average per year) early on in their careers. For mid-career wages, finance and economics are the top earners ($100,000 on average per year), according to new data released by the Federal Reserve Bank of New York.

What is the best business degree to get? ›

Most in-demand business majors
  • Finance.
  • Accounting.
  • Business administration/management.
  • Logistics/supply chain.
  • Management information systems.
  • Marketing.
Jan 24, 2024

Is finance major better than business major? ›

Both finance and business administration degrees offer a competitive earning potential. A business administration degree allows you to work in almost any sector. A finance degree offers the opportunity to work in a variety of finance-related fields.

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