Difference between Finance and Accounting
Finance and Accounting might sound like similar words but they are actually two different terms. These both have interesting career opportunities for youngsters and university graduates. Well if you are an undergraduate student or curious to know about these terms then this article will help you to increase your knowledge on the two topics. Here we will see the difference between Finance and Accounting.
Finance and Accounting both have good career opportunities so we will also see which is a better option for you as a student. Interest Coverage Ratio.
What is Finance?
Before moving to the differences between Finance and Accounting first let us understand what the two terms mean.
The term Finance deals with the management of money of an individual or an institution. In other terms, one can also say that the term finance deals with the investment of money of an institution or individual. In addition to this, Finance is a broader term for the management of liabilities and assets for an institution.
The field provides good career options like working as Financial planning professional. Many professionals in this filed also work in wealth management and investment banking. These professionals work on behalf of the business or company or any institution.
What is Accounting?
The maintaining and recording of the financial records of a company or an organization are known as accounting. Accounting can be a good career option for undergraduate students. If you desire to become a professional in this field then you will be focusing on the day-to-day flow of the money for an organization or company. In addition to this, the professionals of this field are also responsible to check the account balance and also check whether the financial statements are accurate or not.
Well, till now you might have known the basic difference between finance and accounting so now let’s see some more difference between the two terms.
What will be your work?
Accounting is a field that gives details about the financial records of a company and organization. These financial records are given on a fixed period of time for example 6 months or 1 year. While on the other hand Finance is all about growing the money of an organization or company by investing it or managing it in a profitable way. So, if you are interested in maintaining the financial records and balance then you can choose the Accounting field. And if you are interested in growing the money then you can choose the field of Finance. Both these fields provide good salary offers so it depends on your interest.
Accounting information is a key aspect to keep an eye on the financial status and position of the organization or business. While on the other hand Finance is helpful for forecasting the performance of the company in the future.
Types of Clients for both Accounting and Finance:
Both the Accounting and Finance have clients that can be individuals, organizations, businesses, or governments.
- Insurance companies
- Research companies
- Business startups
- Public accounting firms
- Personal tax filing firm
- Operating companies
Choosing one of the two fields might sometime be a confusing decision. But both the fields of Finance and Accounting needs a high skill level and education. In addition to this, both Finance and Accounting provides a good working environment and career opportunities.
In the sphere of business, the two fields are extremely important. And that is why these can give you a lot of career options.