Upon earning a bachelor’s degree, many graduates go on to pursue a higher degree to open up career opportunities and improve earning potential. In the world of finance and accounting, individuals who have received their bachelor’s degree in accounting often wonder what the next best step is–an MBA or a Master’s in Finance. There is no right or wrong answer to this question. If a degree holder feels, for any reason, that his or her accounting education was inadequate, and there is a need to gain a wider financial education then a Masters in Finance makes sense. It also makes sense if there are specific finance related goals or a career path in mind. The MBA, on the other hand, affords a much more comprehensive view of business than a Master’s in Finance. It prepares graduates for leadership and managerial positions in a variety of fields.
When considering which track to pursue, work experience, or lack of it, must be taken into an account. For the bachelor’s accounting degree holder, an MBA isn’t necessarily an option fresh out of undergraduate school because of work experience requirements, whereas a Master’s in Finance is. If seeking to enter a program solely for the immediate monetary gains then a Master’s in Finance could be a convenient choice. However, it is worth weighing the long term benefits of an MBA program as well.
Master’s in Finance
Typically just a one-year program, only previous internship experience is required for admission to most Master’s in Finance programs. The short duration of the program puts graduates back into the workplace quickly without too much time or expense. Extensive study in finance is undertaken; however, this varies by program. Some programs direct students into a “concentration” such as mathematical finance or financial engineering. Many universities offer the Master’s in Finance through other Departments, such as Economics, Mathematics or Engineering. Ultimately the Master’s in Finance graduate will be well versed in the details of financial specific business.
MBA
The Master’s in Business Administration (MBA) is a 2-3 year program that requires anywhere from 3-5 years’ work experience to gain entry. This work experience, coupled with an undergraduate degree, prepares the MBA candidate to experience an education involving aspects of leadership, strategy, marketing, operations, human resources and entrepreneurship. Many MBA programs require students to choose a concentration, such as marketing or accounting, but many do not. In addition, various schools offer concentrations that the student creates, based upon their own personal interest and skill sets. Above all, the MBA allows for access to a wide variety of career paths and job openings, in addition to generally providing higher salary potential than a Master’s in Finance.
Life Choices
Not wanting to be in school for the time it takes to earn the MBA, versus the time it takes to earn a Masters of Finance isn’t a strong enough reason to choose one over the other. This is particularly true in an ever increasing technological world where currencies fluctuate and job opportunities can be transient. The added benefit of the MBA is its traditional perceived strength and the broader skill set as a result of its learning outcomes. Instead of looking for a job, an MBA holder will possibly be prepared to create one. In this entrepreneurial scenario, the bachelor’s in accounting would help ensure that such a new business stayed on track, on budget and well-organized. The MBA will allow for greater career flexibility overall, but if after weighing both options, one still finds that a Master’s in Finance is the best personal choice, then that’s what it will be. Both advanced degrees are strong and all that really matters is what is right for the individual.
