Is finance harder than accounting? (2024)

FAQs

Is finance harder than accounting? ›

While both finance and accounting can be difficult majors, accounting is considered more difficult because it requires more discipline and a lot of math.

The field of finance offers more career choices but also less predictability. In some cases, careers in finance might offer higher pay. Careers in accounting can offer more predictable and stable work but less pay in many cases.

The National Association of Colleges and Employers conducted an analysis and determined that the average annual salary for accounting degrees in the United States is generally around $57,511, and the average annual salary for finance degrees is $58,464.

Finance degrees are generally considered to be challenging. In a program like this, students gain exposure to new concepts, from financial lingo to mathematical problems, so there can be a learning curve.

It's Not as Bad as You Might Think. Getting your degree in accounting really isn't any more difficult than any other potential field of study. Just like any other program, you'll run into some elements of accounting that are complex, but you may also find some of it to be relatively intuitive, or even easy.

An effective way to gauge which of these paths is right for you is by assessing your personality. A “people person” who enjoys working with the public, customer service, business development, or sales would likely be more successful in retail finance.

The finance industry is more competitive than accounting, so it's harder to get a job in finance. Higher risk of job loss. If you choose a career path in accounting and your company goes bankrupt or closes down, you can find another job easily because there are many companies that need accountants.

What are the top 5 highest paying jobs? The top 5 highest paying jobs in finance are investment banking, hedge fund management, CFO roles, private equity, and actuarial positions. These careers typically offer substantial salaries and the potential for significant bonuses.

Chief financial officers (CFO) oversee business budgeting, cost-related decision-making, and financial teams. The CFO role is one of the highest paying finance jobs because it requires financial leadership, experience, and an extensive network.

Salaries in the finance industry

According to the U.S. Bureau of Labor Statics (BLS), careers in finance pay a median salary of $76,850 — 66% higher than the median salary for all occupations in the nation ($46,310).

Is finance hard if you're bad at math? ›

Believe it or not, mastery of advanced math skills is not necessary to have a career in finance. With today's technology, all math-related tasks can be done by computers and calculators. That said, there are some basic math skills that would certainly make you a better candidate in the finance industry.

One thing to consider when choosing to study finance is that much of what you study during your degree program will include a mix of economics and accounting, which is naturally going to require at least some math, so if you absolutely detest math, then this may not be the right degree for you.

I've taught math, accounting, and finance; many other subjects too by the way. And I have degrees in both accounting and finance. With accounting, it's more basic math with algebra as the most advanced. Finance includes these plus higher level math, like statistics and modeling.

A firm grasp of basic arithmetic is essential for performing calculations accurately and efficiently. Addition, subtraction, multiplication, and division are the building blocks of accounting, and accountants must be comfortable with performing these operations quickly and accurately.

Mastering complex skills and paying close attention to detail are some of the challenging parts of learning accounting. Choosing a specialization may help in overcoming these challenges. Accounting is closely connected with fields like finance, data analytics, technology, and mathematics.

Financial analysts tend to work with the overall picture of economic trends and market movements to forecast financial situations. A career in accounting may be ideal if you enjoy examining data like auditing and reviewing financial statements. Financial analysts may make more money on average than accountants.

Accounting is more complex because it relies on precise sets of arithmetic principles. Finance, on the other hand, requires just a grasp of economics and accounting without going into as much mathematical detail as accounting.

Accountants typically make more than the average worker in the U.S. , according to the BLS. In May 2021, the national average salary for all occupations was $58,260. For accountants and auditors, it was $83,980.

(Fun fact: Monty Python's “Lion Tamer Accountant'' sketch financially devastated the British accounting industry.) Actually, finance and accounting are really similar. Lots of “finance bros” have accounting degrees and lots of accountants majored in finance.