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Many undergraduate business programs are based on a foundation of what is known as the FAME subjects: Finance, accounting, management and economics. Business students should gain a good working knowledge of all four subjects, but some may wish to specialize within one of these areas. Two common areas you may choose to focus or pursue further education in are finance and accounting. These areas have several elements in common and are often grouped. So, what exactly is the difference between finance and accounting? What is Finance?Between finance and accounting, finance can be thought of as the more general subject of the two areas. Simply put, it's "the management of money," said Kristin Regis, an associate dean of business programs at Southern New Hampshire University (SNHU). The study of finance can provide you with a strong foundation of knowledge of banking, economics and financial markets, which can be helpful in all types of workplaces. "Every business or organization has a financial component," Regis said. If you choose to pursue a finance bachelor's degree, Regis said your coursework's objective would be on earning a profit – or revenue. Topics you may explore include:
A significant focus may be placed on the study of markets and how they function and fluctuate, as well as how to wisely and effectively manage and mitigate the risks inherent in investing. You could also further focus your finance education with a financial planning degree from a CFP Board-Registered Education Program. "If someone is interested in finance and helping individuals achieve their financial goals, a job as a financial planner can be quite fulfilling," Regis said. Future business people studying finance can have the opportunity to learn industry best practices and build skills in:
Successful professionals in finance understand the stock market and other types of investments and are skilled at interpreting mathematical and statistical data. What is Accounting?Where finance is primarily future-focused, accounting generally works with existing records and documents. "Accounting tells the financial story of an organization and provides the financial justification for resolving various business problems," said Mona Stephens, CPA, MSA (MS in Accountancy) and accounting faculty lead at SNHU. Stephens said accountants use financial data to answer questions such as:
Studying accounting prepares you to become an accountant, working in the field or in one of the many adjacent career paths. Course content in a bachelor's accounting degree program can include:
"The work is important, challenging, and allows you to continue to enhance your skill set," Stephens said. For example, you may develop skills in data-driven decision-making, technology and risk assessment, she said. You may also study business strategy, risk management, information systems, quantitative analysis and more. Successful students should understand the current regulatory and business landscapes and have a good "big picture" knowledge of the business world, according to the American Institute of Certified Public Accountants (AICPA). If it interests you, you may also choose to specialize in the field with a degree in forensic accounting – a good first step toward becoming a forensic accountant. This concentration focuses on forensic examination topics and will help prepare you for the Certified Fraud Examiners (CFE) exam – which proves your ability to investigate and identify fraud. While pursuing a bachelor's in accounting at SNHU, you'll have an opportunity to earn three certifications, which then allows you to gain valuable, real-world experience volunteering with the IRS’s Volunteer Income Tax Assistance (VITA) program. "VITA is a great way for students to learn how to file income taxes directly from the IRS," said Dr. Zuzana Buzzell, an associate dean of business at SNHU. Following the completion of these certification exams you’ll be able to help individuals or families in need with preparing their income taxes through VITA. “VITA volunteering is valued in the accounting profession, as it shows industry skill development, community involvement and dedication to the accounting profession,” Buzzell said. The volunteer work you do can also be applied towards your program credits through experiential learning. What Can You Do With a Finance Degree?Education in finance opens doors to many business careers. People holding degrees in finance often work in banks, hedge funds and investment firms, among other settings. Finance can be a pathway to becoming a financial consultant or personal financial advisor. Financial analysts and managers are also needed in all types of organizations, from family-run local businesses to global corporations. The career flexibility makes finance a nice choice for students who want a smart educational investment. According to the U.S. Bureau of Labor Statistics (BLS), employment for business and financial occupations is expected to grow by 8% through 2030. A few roles to consider in this field include:
See what else you can do with a finance degree. What Can You Do with an Accounting Degree?Accounting is a bit more specialized as a field, although, as with finance, there are accountants and people with accounting backgrounds working in all types of businesses and organizations. "An accounting degree is great because it can lead to a variety of career paths," Stephens said. "You can do public accounting work, be an accountant within an organization, do taxes, work in government or nonprofits, be an auditor, etc." The most well-known career path is to become an accountant, a job that may require a trainee period, further education, certification or a combination of these. Studying accounting can lead to more specialized accounting roles, such as actuary, auditor or financial examiner. People with backgrounds in accounting can also be frequently found working as bookkeepers, tax advisors and payroll administrators, according to AICPA. Other roles include working for government agencies, as an internal or external auditor examining an organization's finances for cases of waste or fraud or as an information technology auditor evaluating a company's computer system controls to ensure financial data is reliable, according to BLS. A few more jobs to consider in the accounting field include:
Accounting is a good choice for job prospects. According to BLS, the employment of accountants and auditors is anticipated to grow 7% through 2030. Accountants are in demand when the economy is strong because economic health and growth mean more people are needed to manage and oversee financial records. A stronger regulatory environment is also good news for accounting job candidates because as regulations tighten, more people are needed to enforce them. If a career in accounting interests you, learn more about what you can do with an accounting degree. Further Education in Finance and AccountingMany jobs in finance and accounting will require a minimum of a bachelor's degree. However, you can also earn many advanced degrees and certifications throughout your career to gain a more specialized or in-depth understanding of your field. In finance, you might be interested in:
In accounting, you can pursue advanced degrees including:
If you want to gain experience in both subject areas, some schools also offer a combined focus with an accounting finance degree. This option could help you unlock career options and pathways in both the finance and accounting worlds. A degree can change your life. Find the SNHU accounting or finance program that can best help you meet your goals. Rebecca LeBoeuf ’18 is a writer at Southern New Hampshire University. Connect with her on LinkedIn. What is the difference between accounting and finance functions?The main difference between them is that those who work in finance typically focus on planning and directing the financial transactions for an organization, while those who work in accounting focus on recording and reporting on those transactions.
What is the difference between accounting and finance accounting?Finance and accounting operate on different levels of the asset management spectrum. Accounting provides a snapshot of an organization's financial situation using past and present transactional data, while finance is inherently forward-looking; all value comes from the future.
What is finance in functional areas of business?Finance. The Finance function involves planning for, obtaining, and managing a company's funds. Finance managers plan for both short-term and long-term financial capital needs and analyze the impact that borrowing will have on the financial well-being of the business.
What is the difference between accounting and finance degree?Therefore, the key difference between an accounting degree and a finance degree, is that accounting focuses on the tracking of how money is shifted and handled, while a finance degree focuses on how the actual shifting and handling of money happens.
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