Two sides of the same coin
THE fields of accounting and finance are interdependent. Accounting involves reporting and collecting records on a business’ past financial transactions, information that is used by the organisation’s finance department to make future financial decisions.
While these are two separate branches that require different skill sets, they are both centred on asset management and are thus often grouped together. A student’s decision to major in either accounting or finance can impact the type of coursework he takes and his career pathway upon graduation.
Someone who is meticulous and detail-oriented may find accounting to be a better fit, while someone more analytical and creative can consider a career in finance management.
Recording and reporting
No matter the size, any organisation that needs to keep financial records or pay taxes requires an accountant’s skills.
An accounting major can become a tax accountant, auditor, forensic accountant or consultant. Opting to become a certified public accountant (CPA) – a qualification that is testament to your expertise and professional credibility – opens even more doors across various fields.
If you find yourself working for a CPA firm, expect to see accountants assigned to different tasks, including forensic accounting, business valuation, financial planning, litigation support and management consulting services.
A good deal of travelling is involved in a public accountant’s life, thanks to her long list of clients that range from individuals to large corporations.Working under strict deadlines in whatever space her clients can provide is business as usual for the average public accountant.
You can also consider working for your local, state or federal government agencies, especially the ones tasked with criminal investigation and anticorruption measures.
Alternatively, you can become a private accountant. While public accountants work for many clients, private accountants are usually assigned to one client – the company they work for. As a private accountant, expect to have your own workspace and regular working hours.
Career opportunities as a private accountant include jobs in general accounting, taxation, internal auditing, computer systems analysis, security analysis, financial reporting, book-keeping and financial controlling.
The business management exposure accountants receive has resulted in quite a few of them assuming lead positions in corporations. If your aim is to become a chief executive officer of a company, one of the ways up is through the accounting department.
As professionals who closely examine financial data, accountants are responsible for tax return preparation. Some accountants become experts in managerial accounting – an important branch of business that is involved in most, if not all, manufacturing and budgeting decisions of a company.
An accounting degree provides a good foundation for people interested in accountancy and related careers, whose job scope includes basic book-keeping, production and analysis of financial records, accountability management, stewardship and financial control.
What the future holds
A career in finance involves managing current and future funds of a business based on past and present records of income and expenditure, which are produced by accountants.
You can expect to be tasked with assessing financial resources, predicting growth and profit potential, analysing accounting statistics and reports, and arranging future funding options.
The finance sector presents a much wider scope than accounting, encompassing numerous major sub-industries as well as niche opportunities. The key to having a fulfilling, successful career is to do your research, locate and land the job in finance that is most compatible with your skills and interests.
A big plus point of being a finance professional is that you have the opportunity to explore myriad sectors if you want a change of scenery a few years into your career.
As someone qualified in financial management, you may find yourself in positions such as business analyst, financial manager, financial analyst, financial controller, investment banker, portfolio manager, trader, stockbroker and personal financial advisor.
A degree in finance is a good starting point if you aim to be in banking, financial consultancy or business management. Students can expect lesson modules such as corporate finance, behavioural finance, capital markets, econometrics, investment management, financial modelling and even a few accounting subjects.
Although you will be exposed to these modules and more at undergraduate level, you can choose to specialise in one or two at postgraduate level to better qualify yourself for the job you want.
Do you need both?
Some institutions offer joint accounting and finance degrees for students to gain a general understanding of both fields and increase graduate employability. Those who wish to pursue further study will specialise in one to establish a more advanced track record in that particular field.
People working in the finance sector depend on accountants to do their job, and businesses depend on the finance sector to chase health and success. Gaining insight into what the other party is doing, whether you choose accounting or finance, can only be a good thing in the long run.
Enrolling in an undergraduate accounting or finance programme requires you to prove your skills in numeracy and possess an interest in these fields.
Excellent results in secondary school subjects such as mathematics, economics, business management, computer science and accounting can be helpful additions to your application, as well as relevant extracurricular activities and hobbies.