Finance vs. Accounting Degree: What’s the Difference?
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The finance and accounting fields often follow similar academic paths, with overlapping core classes. However, the type of work you’ll do in each field once you graduate can differ.
Accounting typically focuses on recording, organizing, and reporting an organization’s financial activity. Finance uses that information to look toward the future, analyze trends, and spot potential growth opportunities.
It’s essential to understand the difference between finance and accounting before choosing a career path to determine which degree better fits your goals. This guide breaks down the nuances between the two and looks at what kinds of jobs you can get after graduating.
What Is a Finance Degree?
A bachelor’s degree in finance teaches you how individuals and organizations manage money. You’ll take courses on financial analysis, accounting, investment strategies, corporate finance, and risk management, among others.
This degree can prepare you for roles such as investment banker, financial analyst, and financial planner, where you’ll use your skills in data analysis, economic modeling, strategic thinking, and market analysis to help explore and guide strategic financial decisions.
What Is an Accounting Degree?
A bachelor’s degree in accounting provides students with the skills needed to accurately manage and analyze financial statements. During your studies, you’ll take classes on financial accounting, auditing, taxation, and accounting information systems. This degree can prepare you for roles such as accountant, auditor, or tax examiner — it can also lay the groundwork for you to pursue certified public accountant (CPA) licensure.
What Is The Difference Between Finance And Accounting Degrees?
Accounting and finance degree programs differ in terms of required courses, emphasized skills, and career paths post-graduation.
| Comparison | Finance Degree | Accounting Degree |
|---|---|---|
| Program Focus | A finance degree focuses on managing money, analyzing markets and making strategic investment decisions. | An accounting degree focuses on organizing, recording, and reporting an organization’s financial transactions. |
| Typical Coursework | Core courses include portfolio management, risk analysis, and corporate finance. | Core courses include tax regulations, managerial accounting, and auditing. |
| Skills Emphasized | These include analytical thinking, financial modeling, effective communication, and data interpretation. | These include strong attention to detail, organization, accurate reporting, and financial regulation knowledge. |
| Common Career Paths | Popular finance jobs include budget analyst, financial analyst, and personal financial advisor. | Common accounting jobs include accountant, auditor, and tax specialist. |
| Work Settings | Finance professionals typically work in fast-paced, forward-looking environments such as investment banks, financial planning firms, and corporate finance departments. | Accounting professionals usually work in structured, detail-oriented settings like public accounting firms, corporate accounting departments, or government agencies. |
Finance and Accounting Jobs and Salary Expectations
Here’s a general list of some of the most popular accounting and finance careers, along with their job descriptions, expected salaries, and projected employment growth through 2033. Data is provided by the Bureau of Labor Statistics.
Popular Finance Careers
Budget Analyst
- Median Annual Salary (May 2024): $87,930
- Projected Employment Growth (2023-2033): 4%
Budget analysts assist organizations in planning their finances by preparing budget reports and monitoring spending. They develop budgets, monitor expenditures, and estimate future costs.
Financial Analyst
- Median Annual Salary: $101,910
- Projected Employment Growth (2023-2033): 9%
Financial analysts help businesses, organizations, and individuals make decisions about spending and investing. They recommend investment strategies, evaluate financial performance, study economic trends, and prepare financial reports for management and stakeholders.
Personal Financial Advisor
- Median Annual Salary (May 2024): $102,140
- Projected Employment Growth (2023-2033): 17%
Personal financial advisors educate clients on money management strategies, including investment, retirement, and tax strategies. They also help them outline their financial goals and assess potential risks.
Popular Accounting Careers
Accountant
- Median Annual Salary (May 2024): $81,680
- Projected Employment Growth (2023-2033): 6%
Accountants prepare and examine financial statements and records, ensuring their accuracy and compliance with regulations. They also often assist businesses and individuals with tax preparations and filing.
Auditor
- Median Annual Salary (May 2024): $81,680
- Projected Employment Growth (2023-2033): 6%
Auditors evaluate financial data and statements to ensure accuracy and compliance with regulations and to identify potential mismanagement. They may work internally within an organization or externally as part of an independent audit firm.
Tax Examiner
- Median Annual Salary (May 2024): $59,740
- Projected Employment Growth (2023-2033): 2%
Tax examiners review tax returns, identify taxes owed, collect overdue taxes, and sometimes conduct audits. They typically work for government agencies and help ensure individuals and businesses comply with tax laws.
Accounting vs. Finance Degree: Which Degree Should You Choose?
When deciding between an accounting and a finance degree, consider your interests, skills, and long-term career goals.
A finance degree prepares you to make high-level financial decisions, evaluate investments, and propose growth strategies. It’s a strong choice for those who enjoy analyzing market trends, thinking strategically, and working in dynamic, forward-looking environments.
An accounting degree, on the other hand, is ideal if you prefer detail-oriented tasks like organizing financial records, ensuring compliance, and analyzing reports for accuracy.
In general, accounting leads to more specialized roles such as auditor or CPA, whereas finance opens doors to a wider range of jobs. Also, according to the Bureau of Labor Statistics (BLS), finance careers tend to have a higher median annual salary compared to accounting jobs.
To help you make your decision, consider doing informational interviews with professionals in each field or talking to a career counselor at your college to learn more about what each career path involves.
Frequently Asked Questions About Finance and Accounting Degrees
Accounting is the process of recording, reporting and organizing financial statements. It ensures a company or individual’s financial statements are accurate and comply with regulations. Professionals in this field often prepare tax returns, craft financial records, and track financial performance over time.
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