Accounting Vs. Finance: Which One’s Right For You?
Finance and Accounting have always been an integral part of our economy. One can find numerous similarities between them. However, the principal distinction between both is that Finance professionals typically arrange and coordinate the monetary exchanges for a company. On the other hand, the individuals who work in Accounting center around maintaining and providing details regarding those exchanges.
Simply put, Accounting is the association and the board of monetary data, while Finance is the administration of customers’ finances. It incorporates speculations as well as reserve funds, financial plans, and many other things. There are many Banking and Finance courses available for both, like PG Certification Programme in Banking & Finance. One of the premium institutes which offer this opportunity is IIM Trichy.
Both Accounting and Finance have their importance, but which one should you choose?
What are Finance and Accounting?
Finance is a broad term related to overseeing cash and getting required assets, including planning, gauging, loaning, saving, contributing, and acquiring. It can be classified into three parts:
- Individual Finance: It involves forming the financial plans of individual persons.
- Government Finance: It incorporates the tax, spending, planning, and different approaches that identify how the public authority apportions assets.
- Corporate Finance: Here, you have to manage the financial activities of a company, organisation, or firm.
Accounting is recording and conveying an association’s monetary outcomes. It involves maintaining the books of accounts, processing the data into reports, and imparting the outcomes to directors. By now, you must have understood that both work in syncing with each other. Accounting can also be divided into the following based on the work:
- Cost Accounting: It includes deciding the expense related to creating a product and assists organisations with choosing if they should deliver the product and what the product should cost.
- Financial Accounting: Here, you have to mainly prepare financial statements of a company such as P/L a/c, cash flow statement, and balance sheet.
- Managerial Accounting: It is utilised by partners to settle on choices on business operations. This can likewise incorporate anticipating, planning, and other monetary investigation devices.
Career in Finance
Finance is a vast subject involving lots of concepts. But, mainly, it revolves around financial planning. A career in Finance includes the following jobs:
- Financial Analyst
- Financial Advisor
- Financial Manager
- Financial Broker
- Investment Banker
Mainly these experts mentioned above deal with outsiders to the company, such as government departments, shareholders, banks, and other people. There are certain prerequisite skills that professionals must possess if they are willing to enter this field.
Some of the essentials of leadership in financial services are given below:
- Interpersonal skills
- Problem-solving skills
- Business acumen
- Analytical skills (most crucial skill among all)
- Managerial skills for marketing financial products
If you possess the skills mentioned above, you can be a perfect fit for the job of a Finance expert. However, you can pursue Banking and Finance courses to hone these skills as the curriculum of professional Banking courses is industry-oriented and specially prepared to meet the Finance industry’s needs.
Career in Accounting
Many individuals believe Accounting is part of Finance, while others allude to it as the “language of business.” They usually work with journals, bank statements, invoicing, and comparative cycles that identify with the day-by-day activity of a business. Likewise, they may make quarterly and yearly monetary reports, break down benefits, oversee obligations, review internal exchanges, and prepare a balance sheet. They usually follow “Generally Accepted Accounting Principles” to carry out their work.
There are several job opportunities for individuals who have completed Banking Certificate courses. Some of them are mentioned below:
- Tax Accountant
- Technical Accounting Manager
- Cost Accounting Manager
- Financial Reporting Accountant
But at the same time, you must possess good working knowledge of Accounting software used by companies these days.
Undoubtedly, both Accounting and Finance are crucial for an economy to work properly. They are two wheels of our economy. Individuals working in both professions enjoy good salaries and have their own perks. If you wish to make a career in any one of the fields, you should enrol for PG Certificate Programme in Banking and Financial Services from IIM Trichy as it is among the top B-schools in India. This course will aid you in getting familiar with the advanced tools of Accounting and Finance.