The terms “finance” and “accounting” are commonly used together. Real-world examples may be seen in a corporation’s accounting and finance department or in a university’s school of finance and accounting. It is not surprising then, that people often confuse them and use the terms interchangeably. Despite the common pairings, however, they represent two distinct and separate fields. Just as the terms themselves differ, there are many disparities between a master’s degree in finance and a master’s degree in accounting. It may be worthwhile, then, to take a look at a few of those major differences.
Past Vs. Future
First, there are some significant contrasts in the fields of study themselves. The study of accounting focuses mostly on things that happened in both the present and the past. Attention is given to the setting up of the monetary records of a business, as well as the production of reports and analysis of those records. Finance, on the other hand, looks at events of the present and the future. It concentrates on the analysis of a company’s potential profitability and growth. It also looks at that company’s monetary resources, which may use accounting statistics and reports, but also looks outside the company for potential sources of future and present funding.
Career Paths and the Courses That Get You There
These fields of study then lead to different career paths trending to a variety of professions. Degrees in accounting commonly lead to careers as financial controllers and accountants. Finance degrees, on the other hand, often pave the way for professions such as financial analysts and portfolio managers.
When it comes to required courses of study, as one might expect, both programs are heavily loaded with a concentration of courses in their respective discipline. There is, however, a noted overlap in the importance shown to both fields in many schools. For example, in one major state university’s program for a masters’ in finance with a corporate concentration, the required classes included three core finance courses, three finance electives, and also one mandatory accounting elective. The same held true in some accounting programs, and of course, classes from either discipline were common as electives in either program.
Where the Money’s At
Perhaps one of the biggest disparities in the two programs is their income potential. Master’s degrees in finance seem to be more lucrative than those in accounting. For example, according to the salary reporting website Payscale, the average earnings for those with an MBA in accounting ranged from a low salary for a staff accountant of $33,645 to a high salary for a corporate controller of $132,847. For a person holding an MBA in finance, the ranges went from a low for a financial analyst of $44,354 to a high for a chief financial officer of $213,462.
Obviously, there are many contrasts in these programs. Selection between them boils down to the factors each individual student deems most intriguing and rewarding. Both degrees, though, present enriching challenges and exciting career opportunities.
