Deciding between an accounting or finance degree can be a challenging task. Both fields offer promising career opportunities and financial rewards, but they’re not quite the same. It’s crucial to understand the differences and similarities, as your choice can significantly impact your future career trajectory.
Accounting vs Finance Degree
Delving deeper into accounting and finance degrees aids students in discerning the specifics of each path. The sections below meticulously break down the basics, providing an enriching view of the two disciplines.
The Basics of an Accounting Degree
An accounting degree equips students with a fundamental understanding of financial theories, tax law, and bookkeeping principles. It introduces them to specialised fields within accounting, such as auditing, taxation, and management accounting. Students learn the art of maintaining, processing, and communicating information about financial performance, investments, and cash flows of a company. An example of a typical accounting course includes Financial Accounting, Managerial Accounting, Audit and Assurance, and Taxation.
The Basics of a Finance Degree
Through a finance degree, students probe into the ways companies, individuals, and governments raise, allocate, and use financial resources. It focuses on investment management, financial planning, risk management, and capital markets. With an emphasis on increasing economic value and managing financial risks, the finance path paves the way for careers in banking, asset management, and financial consulting. Key courses often studied in a finance degree comprise Corporate Finance, Investment Analysis, Financial Risk Management, and Global Financial Markets.
Comparing Career Opportunities
Exploring the varied career opportunities available after acquiring an accounting or finance degree can influence a student’s course decision.
Job Prospects with an Accounting Degree
Securing an accounting degree offers a wealth of career options. Graduates often find roles in private, public, or governmental entities. Some popular roles consist of Certified Public Accountant (CPA), Financial Analyst, Tax Accountant, and Auditor. Here’s an example: a Tax Accountant oversees the preparation and filing of taxes for both businesses and individuals. Another example, an Auditor, is responsible for examining financial records to ensure their accuracy and compliance with laws and regulations. Due to the global demand for accounting skills, those possessing a degree find an abundance of opportunities in various industries.
Delving into Salary Expectations
Transitioning from educational pursuits to professional roles, it’s beneficial to understand the salary expectations linked with accounting and finance degrees.
Expected Salaries for Accountants
Accounting degree holders perceive their earnings prospectively. Based on reports by the U.S. Bureau of Labor Statistics (BLS), the median annual wage for accountants was $71,550 in May 2019. Potential earnings vary, though, depending on the position. For instance, a Certified Public Accountant (CPA), recognized for its stringent certification process and high-level expertise in accounting principles, can anticipate a median salary of $73,560 annually. Financial analysts, another role favoured by accounting degree graduates, command an equally competitive salary, averaging $81,590 per year. Tax accountants and auditors also receive distinct payment, with respective median wages of $55,900 and $71,550 annually.
Considering Further Education Opportunities
After mapping the career trajectories and prospect earnings of accounting and finance graduates, it’s opportune to delve into postgraduate opportunities within these disciplines. Both fields offer specialised graduate programs, further enhancing the skills honed during the bachelor’s degree.
Postgraduate Opportunities in Accounting
Building on an undergraduate foundation, postgraduate studies in accounting delve deeper into financial reporting, auditing, and tax. Master’s programs like Accounting, Taxation, and Financial Management present options for further specialisation.
- Master in Accounting (MAcc) refines auditing, business law, and managerial accounting competencies, which prove pivotal in leadership roles in auditing firms and corporations.
- Master of Taxation (MTax), an extension for those intrigued by complexities of tax law, draws focus on topics such as corporate, partnership, and international taxation to equip graduates better for tax consulting and planning roles.
Success in these programs can result in professional qualifications like Certified Public Accountant (CPA) or Certified Management Accountant (CMA), where each carries its specific benchmark in the accounting profession.