So, you’re thinking about getting a degree in accounting or finance. But which one is right for you?
While there are some similarities between the two fields, there are also some key distinctions.
Here’s a breakdown of what each degree covers and what you can expect to do with each one. Let’s take a closer look!
What Is Accounting?
Accounting can be thought of as a three-step system. In the analysis stage, raw data is gathered and sorted in the first step. The second step, called the recording stage, involves putting this data in a specific format. Then, in the final step, called the reporting stage, the original data is analysed and presented to an audience.
The analysis of accounting is broken down into two components: measuring and classifying. Measuring is the process of converting an economic reality into a number. Organizing is putting these numbers into categories to understand the relationships between them.
The goal of accounting is to provide financial information that is both relevant and reliable. This information can be used to make informed business decisions, assess a company’s financial health, and measure performance. At www.mptax.com.au, our team of trained experts keeps up to date with the latest tax law and development in business management practices.
What Is Finance?
Finance is the process of allocating resources to meet desired objectives. In its most basic form, it is the management of money. But as a discipline, finance goes far beyond simple transactions and includes:
· Finance management decisions for entities (companies, governments) that have more complex funding needs
· Financial planning and forecasting to prudently manage an entity’s financial resources
· Risk management to identify, assess, and respond to risk given the objective of the entity
· Investment management to create portfolios of investments that meet specific risk profiles
· The principles and theories of finance apply to various real-world situations
The study of finance is essential for anyone who wants to succeed in business. It provides the understanding and tools necessary to make sound financial decisions that impact an organization’s bottom line. Finance is also a vital component of many other disciplines and industries. Moreover, understanding economic principles can enable people to contribute positively to their private lives and public service efforts. If you are interested in retirement solutions then check Hitachi Credit SW London Fixed Equity Release.
The Differences Between Accounting And Finance
The fields of accounting and finance are often confused. While they share some similarities, there are several key differences.
Accounting is the process of recording and reporting financial transactions. It includes recording revenue and expenses, preparing financial statements, and assessing tax liabilities.
On the other hand, finance involves allocating financial resources to achieve specific goals. It includes raising capital, investing in assets, and managing debt.
One of the key differences between accounting and finance is their focus. Accounting focuses on historical financial information, while finance focuses on future forecasts.
Accounting is often focused on preparing financial statements, filing taxes, and presenting coherent information for external stakeholders. On the other hand, finance is focused on making sound financial decisions that will benefit the company in the long run.
Another significant difference between accounting and finance is the use of terminology. Accountants use terms such as debits and credits, assets and liabilities, while financiers can be found talking about capital, investment, debt, etc.
Despite their differences, accounting and finance are often used together to help companies plan for the future and make intelligent decisions.
Accounting and finance are pretty different, but they complement each other very well. Both involve the management of a company’s financial resources. Accounting focuses on recording and reporting past transactions. At the same time, finance predicts future performance, allocates financial resources to the most profitable areas, and manages debt.
By understanding the differences between accounting and finance, you can better understand how a company performs financially and make more informed decisions.
Accounting Vs. Finance, What’s Better?
There is a lot of debate over what is better, accounting or finance. The two careers have many similarities but also have some distinct differences.
The finance industry is all about money and investments. Accounting, however, is more focused on business data. As a result, accounting jobs are also more likely to be in the public sector. In contrast, finance jobs are more common in the private sector.
Finance careers can be very lucrative, and many people think they are better than accounting. While there’s no right or wrong answer in the debate, it can be helpful to understand the pros and cons of each field.
Accounting Pros: Accounting jobs are less risky than finance careers – you won’t lose your job as efficiently. It is also suitable for job security and having a family to support.
Accounting Cons: The salary range for accounting is also much narrower than finance careers. Accounting pay usually starts from $45,000 a year, while finance jobs may begin in the $55,000-60,000 range. Some accounting jobs may also require additional training after college, which can be costly.
Finance Pros: The finance industry is always in demand and offers better job security. Finance jobs pay more than accounting jobs by about $10,000 a year.
Finance Cons: Finance jobs are very demanding and require long hours, sometimes beyond what you would do in an accounting job. The finance industry is also very volatile, which means that jobs can be lost quickly during tough economic times.
So, what’s better, accounting or finance? In the end, it depends on your needs.
If you want job stability, then perhaps accounting is the better choice. But if you’re going to make more money and have a more exciting career, finance is the better option.
How To Become An Accountant Or A Financial Advisor?
A career in accounting or finance can be enriching. Not only that, there is a high demand for people with these skills in Australia, and the industry of accountants and financial advisors has been growing by leaps and bounds over the past few years.
Accountant
So, you want to be an accountant? Here in Australia, there are a few ways to make that happen. You can study accounting at an accredited university or take online accounting courses to get started.
Some of the best universities for accounting in Australia include Monash University, Macquarie University, and the University of Melbourne. These universities offer both undergraduate and graduate accounting degrees and postgraduate accounting courses.
If you’re looking for a more flexible option, you can also take accounting courses online in Australia. Various providers offer these courses, including Accounting Online and the Institute of Chartered Accountants in Australia (ICAA).
The ICAA offers a range of certificates, diplomas, and degrees in accounting. The certification can be completed in full online. At the same time, the certificate course is delivered through three live classes over four days. The degree courses at the ICAA are part-time, flexible learning courses that take around three years to complete (including work experience requirements).
Financial Advisor
Are you interested in the finance industry and banking industry? In Australia, there are many jobs available in finance and related services. For example, financial planners, financial advisers, insurance brokers, and loan brokers are among the professions in this area.
You can take different paths to become a financial planner in Australia.
The most common way to become a financial planner is to complete a diploma or degree course in financial planning. Universities and colleges around Australia offer these courses.
Once you have completed the course, you will be eligible to become a member of the Financial Planning Association of Australia (FPA), the professional body for financial planners in Australia.
You may also consider becoming a certified financial planner (CFP). To become a CFP, you must pass a comprehensive exam covering all personal finance aspects. The Financial Planning Association of Australia offers an online practice assessment on their website to see if you’re up to it. You can take this test before registering for the CFP exam.
Suppose you’re not interested in completing a diploma or degree course. In that case, you can become a financial planner by completing an accredited financial planning short course. These courses usually last for around 12 months and give you the basic skills and knowledge to start your career as a financial planner.
Once you have completed the course, you can start applying for financial planning jobs. The next step is to become a member of the Financial Planning Association of Australia (FPA).
There are many ways to prepare yourself before launching your career in accounting or finance. First, however, it’s important to remember that an essential qualification is a passion for helping people and a genuine interest in the subject matter.
So, the best thing to do is to start researching the different courses and qualifications available. And don’t forget to ask around – speak to friends, family, and your network of professionals to see what they think is the best way for you to become a financial planner.
Wrapping Up
There are many different career options to consider when deciding on your degree. Some students may be leaning towards accounting because it is a more stable field than finance. Others might choose to study finance if they want the opportunity for higher salaries and bonuses in their future careers.
The best way to answer this question is by considering which industry you would like to work in after graduation or what occupation interests you most. Then, once you have the answers, you should decide whether or not to pursue an education in either of these subjects.
If you’re still unsure, don’t worry! Speak with one of your admissions counsellors, who can help guide you through the decision-making process.