Finance Vs Accounting: Key Differences and Which to Choose

Are you feeling confused on whether to choose a career in finance or accounting? Well, you are not alone. Finance and accounting are extremely important and related field but they are also different when it comes to pursuing career opportunities. If you know understand the primary difference between finance vs accounting you will be able to easily able to decide which path you would want to follow. 

Why Study Accounting and Finance in UK?

You will be able enjoy multiple benefits if you study accounting and finance from the UK. Let us have a look at some of the main reasons why you should consider pursuing your finance and accounting degree from UK:

• Globally Recognized Degrees: The academic standard of the universities of the UK is extremely high. Therefore, if you complete your graduation from UK know you will be a highly sought after candidate in job market. 
• Strong Industry Connections: The universities of UK has robust alumni network and good relationships with top companies and institutions all over the world. By selecting UK universities as the destination for your studies you will be able to open up internship and placement opportunities. 
• High Employability: The students that have graduated from universities of the UK has incredibly high level of employability. Having academic success along with some work experience during their studies can help students remain competitive when it comes to employment.
• Cultural and Professional Exposure: While studying for an accounting career or finance career in the UK most students are able to come across a multicultural environment. This exposure can help them become familiar with different cultures and prepare them for global financial and accounting careers.

What is the Main Difference Between Studying Accounting and Finance in UK?

Finance vs accounting are two relatively similar fields, but choosing between them can define your future career path. Therefore, it is extremely important to know the difference between an accounting career and a finance career. Even though both fields are interrelated, the skills you need to master for both subjects are different. Here is a detailed comparison between these two field of study:

Focus of Study

• Accounting: Accounting programs are centered around the accurate documentation, analysis, and verification of financial operations. Some of the skills that students need to master while studying this subject include the preparation of financial statements, taxation, and auditing. The curriculum is more inclined towards technical knowledge and expectations of a workplace where students can become auditors, tax professionals, or certified accountants.
• Finance: The UK’s finance courses’ key focus is asset management, investments, and capital markets. The coursework includes the details of financial systems, investment approaches, risk management, and business finance. 

Skill Development

• Accounting: Focuses on developing skills in precision, regulation, and extensive knowledge of financial reporting.
• Finance: Emphasizes problem-solving, critical thinking, and strategic skills, which mainly helps if you want to focus on taking up leadership roles in companies.

Accounting being more of a specialized field, is more analytical compared to a finance career which tends to be more strategic and managerial. The choice between these two fields comes down to deciding whether you want to focus on handling large amounts of data or on setting the overall financial strategies.

Core Subjects in Accounting Programs

Accounting studies in the UK generally cover coursework related to financial systems, policies, and procedures. Here’s what they typically include:

Financial Reporting: Compilation of accounts and balance sheets of organizations.

Auditing: Internal and external audits for preventing and detecting fraud and errors in the company’s financial statements.

Taxation: Comprehending tax legislation and methods of preparing Corporate and Individual tax returns.

Cost Accounting: Analyzing company cost to support the decision-making process in businesses.

Management Accounting: Applying financial information in decision-making and the formulation of business development strategies and budgetary control.

Ethics and Regulations: Following the regulatory standards and ethical practices in accounting.

Core Subjects in Finance Programs

Finance courses can prepare students to handle funds, securities, or financial structures. Here are some of the core subjects in finance programs:

Corporate Finance: Exploring the concept of capital structure and funding along with a deeper understanding of the corporate financial decision-making process.

Investment Management: Policies for handling portfolios and funds for different types of securities.

Financial Markets: Comprehending the functioning of world markets and securities trading environments.

Risk Management: The concept of financial risk management involves the assessment of risks in the financial market and how to effectively deal with them.

Economics: This is a fundamental subject that covers how resources are allocated, functioning of the market, etc. Students also get to learn about macroeconomics and microeconomics. 

Quantitative Methods: In this subject you will get to know how to use mathematics and statistics to evaluate financial data.

What Are Basic Requirements for an Accounting and Finance Degree?

Any students who intend to pursue an accounting career or a finance career must be willing to meet certain academic and skill requirements. Here are some prerequisites: 

• High School Diploma (or equivalent): Almost all UK universities expect their entrants to have completed their secondary education with a specialization in mathematics and some other subjects such as economics or business.
• A-levels/IB (or equivalent): Most students are expected to get A-levels in areas like Mathematics, Economics or Business Studies. An equivalent qualification is the International Baccalaureate (IB) which is accorded to international students.
• English Language Proficiency: Certain universities require the results of IELTS or TOEFL for those who are non-native English speakers or any other test equivalent to it.

Read Also: Best UK Universities for Accounting and Finance Degrees

Why a Graduate Degree in Accounting or Finance is Worth It

There are lots of advantages to pursuing a career in finance or accounting. Here are the main reasons why advancing your education in these fields can be beneficial:

• Specialization and Expertise: Graduate programs can help students to filter down certain areas to focus on. You can select from subjects like corporate finance, taxation, auditing, financial, etc., in order to increase efficiency.
• Higher Earning Potential: Having a graduate degree in the field of finance or accounting will allow you to kick-start your career in top companies and conglomerates. Any kind of specialization in accounting and finance will allow you to get a better job and a higher wage.
• Professional Certifications: A lot of postgraduate courses available in the UK allow students to study professional certification courses that are in demand in the market, including ACCA, CFA, or ICAEW.
• Practical Experience: Placements, internships, or live projects are common in graduate programs that students pursue in universities in the United Kingdom. Active participation in these projects will prepare you for your job after you complete your graduation.

Further Scopes in Accounting and Finance

Accounting and finance graduates from the UK also have the chance to pursue master's. You can select any related field of study to improve your chances of getting a job in finance or accounting.

• Professional Certifications: To increase their chances of employment, many students pursue professional courses such as the CFA, CPA, or the ACCA. These certifications are internationally accredited and have a major role in creating employment opportunities in different companies.
• Specialized Master's or PhD Programs: For those with an academic inclination or those who want to have a specialization in a certain area of finance or accounting, individuals can pursue a PhD or a master’s with a specialization in such areas as forensic accounting, corporate finance, financial risk management among others.
• MBA in Finance: Another equally popular option for further education is MBA in finance. This program is ideal for every person who is in the process of searching for a job in a leadership position, such as CFO or financial director.

Career Prospects in Accounting and Finance

Having a degree in accounting or finance, you will be able to receive various job opportunities within varied fields. Here are some of the promising career paths you can pursue in finance vs accounting:

Financial Analyst: In this role, you will have to provide financial data, estimate future revenues of a particular company, and provide suggestions regarding the stock market investment. This position is relevant in the banking industry, investment firms, and any other large company.

Accountant: As an accountant, you will have to consolidate, review, and produce accounts. Prepare and analyze financial statements and confirm their legal admissibility. Public accountants work for accounting firms for corporations or can be self-employed.

Auditor: The role of an auditor primarily focuses on conducting an internal or external business evaluation for the assessment of the efficiency of financial activity in an organization. This position is fairly important in order to ensure compliance with legal provisions and to improve the financial efficiency of an organization.

Tax Consultant: Provide expert consultation regarding tax plans, calculate taxes, and reduce the tax burden of organizations and individuals.

Corporate Finance Manager: Responsible for the general and financial control of a business and the way in which the business organizes its finances. This role is very crucial in the evaluation of risks and in the generation of financial revenues in various organizations.

Final Thoughts

Ultimately, whether you want to pursue finance or accounting will depend on your interests and future choice of career. If you really like dealing with numbers and have a knack for problem-solving, then studying accounting would be a good career choice for you. On the other hand, if you are interested in leadership roles and want to work with strategy, then studying finance would be the appropriate choice.

In case both accounting and finance careers interest you, your journey will begin with the right education. If you ever need guidance along the way, assignment help UK services can provide the support you need to excel in your studies. Ready to take the leap? Let’s explore your options together.

Frequently Asked Questions

What are the main differences between finance and accounting?

Here are the major differences between accounting and finance

Accounting is a program that is centered around the accurate documentation, analysis, and verification of financial operations. Some of the skills that students need to master while studying this subject include the preparation of financial statements, taxation, and auditing. Moreover, the curriculum which is made in accounting is more towards the technical knowledge and expectations of the workplace. Here the students who have become auditors, tax professionals, or certified accountants. The major skills gained here are precision, regulation, and extensive knowledge of financial reporting.

On the other hand, finance is management of the assets, investments, and capital markets. The coursework here is about the financial system, investment approaches, management of risks, and business finance. The major skills gained here are problem-solving, critical thinking, and strategic skills, which mainly help if you want to focus on taking up leadership roles in companies.

Which is better for career growth: finance or accounting?

Both courses have their importance. It is up to you to know and understand which path to choose. If you like dealing with numbers and have a knack for problem solving then studying accounting would be a good career choice for you. On the other hand, if you are interested in leadership roles and want to work with strategy then studying finance would be the appropriate choice.

Is finance harder than accounting?

Both subjects are hard in their ways. If you can handle and manage the core subjects properly, then nothing is hard. Both subjects are made in such a way that it will help the students gain maximum exposure in the field. But if you are unable to manage and handle the overall subject, it can be harder.

What jobs can you get with a finance degree vs. an accounting degree?

There are many job options that can be gained in the finance and accounting degree. Theta are as follows:

Financial analysts are majorly involved in providing financial data, estimating future revenues of a particular company, and providing suggestions regarding stock market investment. This position is relevant in the banking industry and investment firms.

Accountants are the ones who are into reviewing, producing, and consolidating accounts. Some can be self-employed and some can be in organizations.

Auditors are the ones who do internal and external evaluations for the efficiency of the financial activity.

Tax consultants are the ones who provide help with tax plans and calculate them for their clients.

How do I know if finance or accounting is right for me?

In order to know which field is for you, self-assessment is needed.  Here understanding own skills and interests is important, if these match the needs of the subject, then one can decide on choosing the field.