Joana
An accounting question.
What is the difference between majoring in accounting and finance? Which one is more easy (Both of them sound hard but one of them has to be easy.)?
I want to know which position is not hard to take if you are thinking of becoming a business major (work somewhere in the business field.) #business #finance #accounting #work
7 answers
Justin Pollack
Justin’s Answer
During college, I majored in finance, but I took a bunch of accounting classes too. Finance and accounting are related, but different. Deciding on majoring between the two should be a function of which area interests you more. You won't need to decide until after you have taken introductory classes to each subject. However, I can separate the two based on the following broad definitions:
Accounting is the study of the plumbing that runs a business. Accounting majors look at the issues of how a business reports where money is coming and going. All of this information is critical so a business understands where it is making profits and where it may be losing money.
Finance is the study of investing in a business. Finance requires a knowledge of accounting, but not the same level of expertise. Finance takes this accounting information and decides whether or not to invest. As an example, you don't need to be a plumber to buy a house, but you sure want to know if the kitchen sink and toilets work.
I would choose a major based on which area interests you more, because you will take more classes in that field. However, either major can lead to interesting opportunities in business.
Accounting is typically the language of business and really goes into detail how financials work, where money comes from, where it comes out. Finance is more of an application of accounting but more focused on the future of the business for investing, getting funds, and ensuring the continuity of the business. Accounting is the most versatile major to go with. Professors told me you can work in pretty much any industry as an accounting major. The main difference with accounting and finance? Accounting focuses on the past, finance in the future. You can do finance with an accounting background, but not accounting with a finance background.
Martin
Great answer! Thank you very much!
Joana
Steve Johnson
Steve’s Answer
Finance is a field that deals with the study of investments. Which includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management. A key point in finance is the time value of money, which states that purchasing power of one unit of currency can vary over time. Finance aims to price assets based on their risk level and their expected rate of return. More at https://en.wikipedia.org/wiki/Finance
Accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers; and management accounting focuses on the measurement, analysis and reporting of information for internal use by management. https://en.wikipedia.org/wiki/Accounting
I think of Accounting as more about the tactics of how a firm used its money while Finance is more about using money strategically. In any case, I would encourage you to take classes in both to see which fits you better. Neither is "easy" unless you're inclined to be methodical.
Accountants work on reporting the financial conditions of both private and public enterprises. Accountants who work for companies help management prepare financial statements. Those who work as "public" accountants express an opinion on the fair presentation of those financial statements. They are normally independent of the companies and financial statements they express an opinion on. Finance on the other hand, is mostly concerned with credit analyses, capital allocation and sales of financial assets from a micro and macro level. Majoring in accounting may lead to careers as a Certified Public Accountant (CPA) or a career in government as a Certified Defense Financial Manager (CDFM).
Chima Nwala, MBA
Professor SIR Lloyd Christopher Stanton
Professor SIR Lloyd’s Answer
Both are subject matters that will be taught in college if your major will be accounting or business.
Christopher Boutros
Christopher’s Answer
I majored in Accounting and am studying . The simplest definition is that the finance department projects the expected money coming into the company and how a company plans on using it. They monitor the money coming into the company to ensure that their projections stay in line with the goals that are set and the investments that want to be made.
Accountants are the ones who actually cut the checks, charge the credit cards, records the information that is later used by the finance department.
Florian Le Saux
Florian’s Answer
Both are very close, essentially learning similar concepts from 2 different point of view. If you want to become a CPA, accounting is the way to go. You'll learn how to record transactions and the flow of business.
Finance allows you to see the bigger picture, how pieces fall together and how accounting decision matter to the investors. I've done a bit of both and found Finance more interesting since you grasp more complex math situations and can potentially open yourself to greater career growth.
If you wan to stay in the business field, then i'd recommend accounting. You'll learn more practical topics which will help you more understanding how to run a business.
Jason Savage
Jason’s Answer
I majored in both Accounting and Finance. Finance classes will let you see more about investments and valuation, whereas accounting courses will be more focused on bookkeeping, auditing, and if you're up for it, taxes. I personally viewed my Finance degree as something to use for my personal finances only and Accounting was going to be my career. Both can feed off each other and knowledge of one will help you understand the other better.
Karoly Coll
Karoly’s Answer
I am a finance major, and the biggest difference is that finance is concentrated in the future. As you take college classes you will learn that finance studies the future or projects what is going to happen. Accounting on the other hand concentrates in the past. Accounting balances the books on things that have already taken place, or other "past" activities.
I believe they both definitely overlap with each other as you have to for example be able to read a balance sheet for either. I know many people that studied finance and work in accounting and the other way around.
I wouldn't say either is harder, they are just different. Maybe try an internship so you can try it and see which one you enjoy the most. You will be able to find a job with either, and in addition I have friends with Political Science degrees working in finance and accounting due to experience.
You never know all the opportunities you might have!