Finance VS Accounting: Whats the Difference?

Hello there, and welcome to the channel! If you work with financial figures and are looking to know the meaning behind accounting or finance, then we can help you! In today’s video, we will be discussing the key similarities and differences. Stay tuned, and don’t forget to let us know your thoughts in the comments below. Thanks for watching!

Hi welcome back to the channel how are you all doing when it comes to a firm whether big or small the numbers involve play a huge role it wouldn’t even be wrong to say that how the numbers are recorded as well as managed makes all the difference however many people fail to identify the difference between accounting and finance and use the two terms interchangeably

Accounting and finance are two distinguished disciplines each one of which has its own merits accounting versus finance what’s the difference let’s have a look and help you better understand it number five art of planning versus art of summarizing people fail to understand the difference between accounting and finance both of them involve numbers and are related

To the financial health of an organization let’s first have a look at their definition finance refers to the science of planning assets within the company while accounting refers to the art of summarizing accounting in other words is the flow of money in and out of the company while finance is a broader term which encompasses how a company manages its assets

And liabilities so when both of them have completely different things to focus on they surely have different things to offer as well whether one wants to focus on accounting and finance depends clearly on the area of their focus interest finance helps provide a broader perspective and if one wants to focus on the strategy a company applies at the higher level

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Finance is their friend on the other hand if the goal is to dig deeper into the books of the company one has to go for accounting number four career prospects in today’s world what career you’re going to choose is going to make all the difference both in your personal and professional life what you decide to do for the rest of your life can make or break your

Aspirations if one decides to go for finance he has the following career options to choose from these include investment banking corporate finance equity research private equity risk management quantitative analysis project finance and technical analysis accounting provides a different set of career options such as forensic accounting management accounting public

Accounting financial accounting as well as auditing it also involves government accounting all of these jobs are well paying and whether ones decide to make a career in accounting or finance one thing is confirmed i.e they are said for life another career option available to people who have an education in accounting or finance is teaching all universities require

Professionals who can bring in academics as well as practical expertise to the classroom so that students can use their knowledge to advance their careers and make the best out of their degrees number three the prerequisites of these careers the education one needs to make a career in accounting or finance differs as well for finance one can go for bachelors in

Finance accountancy or economics while these are all undergraduate level degrees for graduate level one can go for master’s in business administration chartered financial analyst financial risk management professional risk management and certified financial planner on the other hand for accounting the degrees at bachelor’s level stay the same as the two disciplines

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Are highly overlapping however at graduate level these degrees vary from those of accounting these include chartered accounting certified public accounting association of chartered certified accountants and chartered institute of management accounting they also include certified management accounting once you have the desired degree you may want to know what firms

Are there to hire you for finance related jobs the firms include blackstone goldman sachs morgan stanley bank of america credit suisse citibank hsbs jp morgan as well as ubs for accounting related jobs the options include pwc kpmg deloitte ernest and young grant thornton and bsp these are all just a few of the best options that accounting and finance graduates

Have out there but the lists do not end here and they go on and on which shows how finance and accounting graduates have many options to decide from number two life ahead while people who work with numbers and cash flow are usually very passionate about their work but it’s important to know how your work life balance will be in each of these professions let’s start

With finance related jobs investment banking is brutal one hardly gets any time for their leisure activities in equity research one gets to work as well as maintain a good balance with their personal life however it also depends on the domains the analysts work on in each of these professions compared to finance people working in accounting related fields have a

More balanced work life the work financial analysts have to do and need to get done requires more urgency as it is more urgent as compared to accountancy related work people working in finance do not have to travel much most of their work is related to or confined to their workspaces at their organizations similarly accountancy related jobs also don’t make the

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Employees travel much to sum it up ninety percent of their time roughly is spent in their offices which only gives them an opportunity to maintain their work-life balance number one the major areas when it comes to finance the major keywords or areas of focus include financial modeling valuations mergers and acquisitions net present value internal rate of return

And auditing for accounting the areas of focus are as follows journal ledger statements of cash flow that include balance sheet income statement and statement of cash flows finance requires more technical skills but accounting helps one acquire more people related skills one can become an auditor as well as a consultant in accounting related fields one thing that

Gives an edge to accounting over finance is the work life balance that it allows its employees to have however finance has better paying jobs which is a return for the effort and hard work they have put in while finance jobs may pay better accounting jobs are often well paying as well given you are associated with the right organization and have worked to enhance

Your knowledge and skills beyond your level of education for more such videos make sure to subscribe to our channel and hit the bell icon so you don’t miss out on the latest updates and notifications thank you

Transcribed from video
Finance VS Accounting: What's the Difference? By All Things Financial