Many think that accounting and finance are the same, but actually they are different or field or subjects, but they have a close association with each other. Â Accounting mainly records the transaction of business for a particular company along with the profit and loss presentation in order to reveal the gain and loss for company on yearly basis. It also includes balance sheet preparation reflecting the financial status on a specific date for the company.
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How do finance and accounting differ?
Finance cannot make decisions without data of accounting and accounting has no value if it has no use in finance.
Finance makes use of this information and helps in projection of future growth and also in analysis of expenditure so that company finances can be strategized.
Accounting will emphasise on records of past and present both, and creating and analysing the records. It also encompasses to plan, control, and make final decisions, accountability and stewardship with other activities.
If you desire to be a chartered accountant, what you need is to achieve special professional qualifications as per the country where you intend to work. If you are fortunate to get hired by a company which will finance you in attaining the professional degree it is a double bonus for you.
The main reason being careers in finance mainly depends on managing the present or future data of an organization or business. But accounting mainly is to record the current and past income or expense.
Specializations in Accounting
If you are a student of accounting you may opt to specialize in certain topics like tax, auditing, international accounting, assessment of risk with management accounting. Another possible path can be Forensic accounting which will allow pupils to know the Steps to know how your child is doing in academics to concentrate on real-life case studies so as to offer a complete and full proof understanding about the accountancy processes in close connection to legal proceedings.
Cases related to fraud, insurance claims, corporate ethics, electronic crime and bankruptcy are few of such real life examples. Similar to finance the students intending to do accounting with added specialization or independent research can enrol in an extended postgraduate degree at PhD level.
Specializations in Finance
For students who are doing Finance at degree level there are some common specializations such as financial evaluation, financial modelling ,derivatives, corporate finance, investment management behavioural finance, econometrics, quantitative finance, capital markets, financial reporting, financial regulation and few topics on accounting as well.
At undergraduate level the specializations are sometimes taught under a single program, but in some courses they may be treated like individual courses in postgraduate study level. Apart from this banking financial management, financial planning and risk, financial engineering and international finance are some other specializations.
What are the entry requirements for finance and accounting degree?
There is no requirement or expectation that you need to have relevant working experience or specific qualification in finance and accounting when you admit to study finance, accounting at undergraduate level. But as applicants or aspiring students you need to exhibit your proficiency in numerals and your keen interest in the field of finance and accounting.
You can pursue these degree level courses if you have A-level qualifications in high school in the FAME, STEM like mathematics, business, computer science, economics and other technologies and sciences. Some students are math club members, which may also be considered.
When you intend to apply in finance or accounting program for post-graduation, the basic criteria for entry will be completion of an undergraduate degree or an equivalent number of yearâ€™s professional working experience. But this may not be mandatory always, as interested students those who are able to show the analytic and quantitative aptitude with the syllabus covered in the earlier degree course or by securing good grades in several exams like GMAT and GRE are also eligible candidates.
Some students take a joint course in finance and accounting at undergraduate level so as to gather better knowledge of both the domains and fields. But if you want to study further you must take specialization in any one of the disciplines to achieve higher expertise in that.