Choosing between Financial Analyst and Accontant
I am currently working towards a business degree in leadership management and development. I'm taking electives now and am interested in exploring a career in Finance or Accounting. I was wondering what is the biggest difference between the two? #business #career
Financial Analysts evaluate financial records/statements, whereas, Accountants manage and work directly on a company's financial records. They focus on the daily financial operations, look at ways to reduce costs, ensure that documents comply with financial regulations, and ensure the funds are allocated to/from the correct budgets internally. Financial Analysts focus more on evaluation of the financial situation, review trends and financial history, and this includes analytics regarding the company's performance and creating forecasts.
Hope this helps, good luck!
I am a financial analyst so I can speak more about a finance career but I have worked with accountants as well and have some understanding of what they do. As others have mentioned, accounting is more focused on preparing the financial statements of the company and ensuring the accuracy of the reported information.
Finance is usually involved in supporting decision making which requires understanding the financial statements and the operational drivers that impact financial performance such as sales performance, competition, cost of labor, to name a few. Financial analysts are tasked with determining what the future performance of the company will look like based on an analysis of historical data, strategies the company plans to take and possible risks and opportunities facing the company.
It is not uncommon for someone to transition from accounting to finance, and former accountants have the benefit of easily understanding the nuances of the financial statements.
Hope this helps and good luck on your career journey!