Accounting and Finance is one of the most studied business courses, and for good reasons: besides equipping entrepreneurs with the financial skills they need to successfully manage and grow their businesses, Accounting and Finance graduates are in high demand by employers in all industries and are among the top highest-paid professionals. Graduates of Accounting and Finance often work with firms that render tax management, accounting and payroll services while some provide independent professional services.
In this article, we take you through reasons why Accounting and Finance is one of the most sought-after disciplines, the essential skills you must develop to excel in the field, common jobs for Accounting and Finance graduates, top employers in the industry and qualifications that can help you build a rewarding career in this field.
Importance of Accounting and Finance
Organizations employ accounting and finance professionals to enable them to make informed financial decisions and decisions that have financial implications. They provide financial insights that help companies maintain strong financial performance. In addition, they help organizations avoid penalties arising from failure to comply with legal requirements and taxation-related policies.
Accounting and finance experts also work with government establishments, handling tasks related to budgeting, finance, taxation, borrowing, auditing, planning, investment and revenue generation.
The knowledge of accounting and finance can also make you a smart entrepreneur or better manage your personal finance, helping you to save more and avoid indebtedness.
The Difference between Accounting and Finance
Accounting and finance often go together. Both are concerned with effectively managing the resources of an organization. However, the two terms refer to different fields and functions. Hence, we make a distinction between the two below based on their unique functions and modes of operation:
Accounting
Accounting involves collecting financial information, recording financial transactions, analyzing and presenting financial reports, and producing financial statements to aid decision-making. Accounting accurately presents the financial situation of a business, an individual or a government establishment at a given time.
Accounting takes records of day-to-day financial transactions such as revenues and expenses and is past-looking. It also ensures compliance with relevant laws and policies. It does not involve projections for the future but reveals past and present financial performance that can aid decision-making.
Finance
Finance involves acquiring, managing and controlling monetary resources. Finance professionals take decisions concerning financial planning, the assets of organizations and individuals, the investment of funds, budgeting, saving, borrowing, lending and forecasting. They are tasked with helping organizations make strategic and profitable financial decisions.
Unlike accounting, finance is forward-looking; it evaluates the current financial situation of an entity and helps to take decisions based on present needs and future opportunities. Finance professionals often relate with external bodies like investors, government agencies and banks. They manage the liabilities and assets of businesses, individuals and government institutions to promote growth. Hence, the field of finance is divided into personal finance, corporate finance and public finance.
Skills Needed to Succeed in Accounting and Finance
To excel in accounting and finance, you must develop a broad range of skills that can be applied in various industries, some of which include:
1. Analytical skills
Analyzing financial data and interpreting results is a significant part of both accounting and finance. The ability to analyze data and draw meaningful conclusions is critical.
2. Attention to detail
Accuracy is essential in both accounting and finance as small mistakes can have significant consequences. Attention to detail is a crucial skill in these fields.
3. Communication skills
Both accounting and finance require excellent communication skills. The ability to convey complex financial information clearly to others who may not have a financial background is essential. An accounting finance professional must also be able to communicate to convince shareholders, clients and potential investors.
4. Critical thinking
Accounting and finance require critical thinking skills to solve problems and make decisions. The ability to think critically and logically is essential in both fields.
5. Technological proficiency
The use of technology in accounting and finance is growing. Being proficient in software and other technology used in these fields, especially cloud accounting, is crucial. Research shows that 95% of clients are willing to replace their accountants with those that use online portals, while 78% would change to those that use the latest technology.
6. Financial analysis
The ability to analyze financial data to provide meaningful insights, make recommendations and help guide financial decision-making is essential.
7. Accounting knowledge
An in-depth understanding of accounting principles and standards, including Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS) and other relevant regulations is crucial.
8. Financial reporting
Accounting and finance professionals must be able to prepare accurate and timely financial statements and reports, including balance sheets, income statements, cash flow statements and other financial reports.
9. Risk management
The ability to identify, evaluate and mitigate financial risks to help protect the organization's financial assets and reputation is important.
10. Strategic planning
The ability to develop long-term financial plans and strategies that align with the organization's goals and objectives is an essential accounting and finance skill. Creating and analyzing financial models to help predict future financial performance, identify opportunities for growth and evaluate potential investments are key tasks an accounting and finance professional must be able to execute.
11. Tax planning and compliance
Equally important is the ability to understand and comply with tax laws and regulations, prepare tax returns and provide tax planning advice to clients or employers.
12. Budgeting and forecasting
Finally, an accounting and finance professional should be able to create and manage budgets, forecast future financial performance, and track actual performance against projections.
Why You Should Study Accounting and Finance
1. Versatility
From the initial distinction between accounting and finance, it becomes clear that studying accounting and finance will equip you with skills in different fields and prepare you for a career in either of the fields. Moreover, studying accounting and finance will make you a more resourceful financial expert and give you an edge in the job market.
2. Work across industries
Accounting and finance cuts across industries. Every organization requires the services of accounting and finance experts to manage its monetary resources and function optimally. This means the career prospects for accounting and finance graduates are almost limitless. Finance-related employment is projected to grow by 7% in the US from 2021 to 2023, above the projected average growth for all jobs. In Q1 2021, there were already 1,318,550 accounting jobs.
While studying accounting and finance can prepare for jobs in any industry, common employers of accounting and finance professionals include accounting firms, insurance companies, commercial and investment banks, consulting firms and public sector employers.
3. Job security
Accounting and finance skills are in high demand. The financial sector is constantly evolving especially with the increasing adoption of technology, giving rise to the emergence of numerous ‘fintech’ companies globally. This evolution has led to the introduction of cryptocurrency and various financial companies providing transfer, payment and loan services.
Specifically, the global accounting market has grown from $640.7 billion to $675.14 billion between 2022 and 2023. This has led to increasing demand for accounting and finance experts, providing job security and a stable career path. In the UK alone, accounting firms provide more than 405,000 jobs while one-third are planning to increase the number of full-time staff.
4. Personal finance management
Studying accounting and finance is beneficial beyond setting you apart for a rewarding career. The financial literacy you acquire will help you to better manage your personal finances, enabling you to save more and dodge debts and avoidable expenses.
5. Become an astute entrepreneur
Understanding accounting and finance is essential for starting and running a successful business. The knowledge and skills acquired will enable entrepreneurs to manage finances, create budgets and analyze financial statements. Studying accounting and finance can provide aspiring entrepreneurs with the skills and knowledge needed to succeed.
6. Huge financial reward
A career in accounting and finance is financially rewarding. The highest-paying accounting jobs are in the UK, with an average annual salary of £169,000. If you are passionate about working in this field, you will not only achieve career fulfilment but also get well paid.
Careers in Accounting and Finance
There are numerous career opportunities for accounting and finance experts, some of which include:
1. Finance Officer
2. Budget Analyst
3. Purchasing Officer
4. Tax Advisor
5. Financial Analyst
6. Chartered Accountant
7. External Auditor
8. Finance Manager
9. Investment Banker
10. Stockbroker
11. Mortgage Advisor
12. Financial Planner
13. Loan Officer
14. Internal Auditor
15. Finance Director
Top Employers of Finance and Accounting Professionals
1. KPMG
2. PricewaterhouseCoopers
3. Ernst & Young
4. Deloitte
5. Touche Tohmatsu Limited
6. ADP LLC
7. Grant Thornton LLP
8. RSM International
9. H&R Block Inc.
10. BDO LLP
11. Paychex Inc.
Accounting and Finance Programs at MSBM
A career in accounting and finance is financially rewarding and we have different programs to take you through every step in the journey until you become an accomplished professional or entrepreneur.
With our flexible programs in accounting and finance, you can learn at your own pace and schedule to take your career to the next level.
Join the growing number of students taking our online and hybrid accredited accounting and finance courses and learn from distinguished faculty and industry experts without quitting your job.
In-demand accounting and finance courses include:
