When it comes to business management, there are a lot of terms that get thrown around. Two of those terms are finance and accounting. And while they are both essential to running a successful business, they are actually quite different. They are like the two sides of the same coin in which each side is equally essential but different from the other one. Much research work has been done on both disciplines and students often take finance dissertation and essay writing services from our website to have better learning opportunities with these disciplines.
Besides when you compare strategies for managing stress in self and others, not being able to write proficient research work in the related field is the biggest cause of stress found in students. However; if you are yet to choose the specific category or specialization in the discipline of business management or are confused between finance and accounting majors then the following post will help you to better understand each major that will assist you in making a decision.
Differences between Finance Accounting:
There is a proper barrier between finance accounting that differentiates them from one another. Some of the commons differences between them are as follows;
Finance vs. Accounting- Definition:
Finance is the process of planning and managing the financial resources of an organization. This encompasses everything from budgeting and forecasting to investment decisions and risk management. On the other hand; accounting is all about recording, categorizing, and analyzing financial transactions.
Finance vs. Accounting- syllabus/curriculum:
The discipline of finance covers the following topics;
- Data analytics.
- Risk management.
- Capital allocation.
- Investment strategy, etc.
On the other hand; the discipline of accounting covers the following topics;
- Research and analysis of finances.
- Elements of economics.
- Statistics reporting.
- Business fundamentals, etc.
Finance vs. Accounting- Importance:
The importance of finance or financial management is to assist in the future management of projects and assets. On the other hand; accounting gives a financial position and standard to the business.
Finance vs. Accounting- Career opportunities:
People do take into consideration what they are gonna do when they will be entering professional life and choose their discipline accordingly. The job opportunities for finance graduates or post-graduates are as follows;
- Financial data analyst.
- Finance accountant.
- Junior tax associate.
- Auditor.
- Investment banking analyst.
- Personal finance advisor, etc.
Similarly; there is quite a scope for accounting graduates and post-graduates as well. some of the job opportunities that accounting degree holders can look forward to are as follows;
- Staff accountant.
- Internal auditor.
- Management accountant.
- Business analyst.
- Loan officer.
- Financial analyst, etc.
Finance vs. Accounting- Salary:
Salary is a crucial determining factor when it comes to deciding whether or not to go for a particular discipline. The average salary of finance graduates in the UK lies somewhere between 25,000 UK dollars to 32,500 UK dollars per year. Whereas the average salary of accounting graduates lies between 23,000 UK dollars to 30,000 UK dollars per year.
Finance vs. Accounting- Objectives:
The key objective or goals of financial management is the creation of wealth, the generation of cash, earning good returns, and using assets effectively. As far as, the discipline of accounting is concerned; its main goal is to report and organize financial information.
Finance vs. Accounting- Categories:
Even though; there are no particular types of these two disciplines but it can be said that the discipline of finance can be categorized into three main elements, which are;
- Financial planning.
- Financial control.
- Financial decision-making.
Similarly; the categorization of accountings discipline can be done as follows;
- Financial accounting.
- Management accounting.
Finance vs. Accounting- End-user/consumer:
Finance is such a form of education that comes in handy to the management of the company, as well as, the shareholders of a particular business. As long as, the end-user of accounting knowledge is concerned it is helpful for shareholders, management, regulators, analysts, and creditors.
Similarities between Finance Accounting:
Finance and accounting might be two different sides but they are the sides of the same coin. This shows that there definitely are visible similarities between the two as well. Following are some of the similarities that people can make between the two disciplines;
- Both are the categories of total accounting information systems.
- Both branches deal with financial statements, revenues, expenses, assets, cash flows, and liabilities.
- Both systems of accounts deal with the economics of the companies.
- The same principles are used for both branches for the purpose of cost accumulation and cost allocation.
Conclusion:
There are a fair share of differences and some similarities between the field of finances and accounting. It is important to know the comparison between the two in order to decide on one discipline. Hopefully; the above-mentioned post will help the readers in this regard.
