Finance Vs Accounting Degrees
Finances is a broad term encompassing many things regarding the study, development, and management of financial resources and assets. This includes money borrowed for specific purposes and/or provided to businesses as an asset. It is the part of a transaction between the creditor and debtor, and therefore all the parties involved. Finances refers to both good and bad debts.
A good accountant is one who provides financial services that help you make sound financial decisions. Such an individual is expected to have a wide knowledge of accounting practices, taxes, finance and banking systems. The accountant should be able to provide sound economic advice based on the clients’ needs.
Finances helps organizations by providing tools such as financial planning, budgeting, investing, and financing. Through this, companies are able to plan for the future, by anticipating the effects of their actions on their finances. They also learn how to manage their finances properly. The basic purpose of all financial planning is for an organization to achieve its long-term viability. By setting aside a budget for the organization’s financing needs, they are also able to manage their current financial situation.
One must have a thorough knowledge in order to achieve success in the field of finance. A four-year undergraduate program in finance is usually sufficient to begin working as a financial advisor. In addition, some companies also require that finance majors to get an associate degree in business, in order to be eligible to apply for banks or other financial institutions. A bachelor’s degree is the next level of study after the bachelor’s degree in business to become a finance major. After this, one can get jobs in banking, insurance, investment firms, accounting, and many other fields of business.
There are a lot of differences between finance vs. accounting. A financial analyst makes financial projections based on the facts he gathers from all sources. He analyzes the data gathered and analyzes the consequences of those data on the organization’s profitability. He explains the business why the projections are made and what will happen if the forecast is wrong.
Accountants, on the other hand, make financial reports and interpret them in terms of business operations. They do calculations and solve problems that arise in order to come up with an effective financial report. Most accountants start with general business knowledge, but with experience, can expand their knowledge and tackle more complex cases. While these two jobs do not have much difference in terms of responsibilities, the responsibilities of an accountant are much higher than that of a finance manager, who can handle projects of less complexity.
