Are you a math junkie? Do you keep playing with numbers? You should try your luck in finance, it’s a good career path to pursue. Some finance jobs include financial analyst accounting, whose job is to focus on past and current transactions, and accountants are supposed to focus on daily operations.
If you keep learning and studying about certain duties with backgrounds needed for each position then you will definitely get what jobs suit you the most. There are plenty of jobs in the world of business for those who love analytics more than themselves.
People often do not understand these two disciplines, rather overlap them. But in reality, they are very different from each other. They may work with money but the areas are not alike.
In this article financial analyst vs accountant, we will be talking about who they are, their positions and works, and finally, compare their salary.
Who Is A Financial Analyst?
They are the ones who examine economic trends that determine areas where an organization, company, or an individual can invest money. With the help of data, a financial analyst makes sure of the overall security of the client and analyzes risks so that smart investments can be done.
They also have the access to the financial condition of the company, so that after his or her research they can come up with a decision that can make the investment beneficial or not. Other than this they also
- Evaluate financial documents to see if the project is advisable or not based on current market trends.
- They also attend meetings with the company to help them decide financial matters.
- They go through financial history, to come up with future actions.
Who Is An Accountant?
He is the one that inspects and handles the financial operations of businesses and organizations through a track record. Businesses need accountants to help them make decisions and measure economic performance along with plan costs.
They also prepare documentation for clients and do what is necessary related to tax filing and tax returns. Other than this they also
- Identify areas of waste that the company is spending on.
- Make sure that the documents follow regulations under (GAAP).
- Manage account books of the company to keep a record of the cash flow and suggest insights into the day-to-day operation.
There you go with the definition of financial analyst vs accountant. Moving on!
Financial Analyst Vs Accountant
Financial Analysts go for investment opportunities while Accountants manage complete taxes and financial records.
GOALS – Financial Analyst Vs Accountant
Financial Analysts focus on future pursuits along with past present trends. They test the total picture, starting from investment opportunities to making profit plans for the future.
Accountants look upon daily operations and analyze specific details while reviewing data, like finding out how much money is currently available.
EDUCATION- Financial Analyst Vs Accountant
To hold any of the positions you have to have a B.A degree in accounting, economics, statistics, business administration, or related fields.
A CFA license lets financial analysts provide advice to the clients by telling them about investment opportunities.
A CPA license teaches accountants how to file taxes through the American Institute of Central public.
ENVIRONMENT- Financial Analyst Vs Accountant
Financial analysts work for large organizations in offices or in their own settings. They also travel a lot for meetings with important clients.
Accountants on the other hand work with multiple businesses, from small to large firms. They do not travel as Financial analysts do.
They both use the same financial software for work, but accountants work for more hours during the tax season of tax, which starts from February and takes time till April.
SKILLS – Financial Analyst Vs Accountant
Both positions work with mathematics and their skills are related to analytical thinking. Therefore the skills and traits vary.
Financial analysts dig deep with their research, make the right decisions, and show leadership skills. All these are possible because they concentrate on past transactions and improve the finances of the company. They are also very good at proving solutions to a problem.
Accountants are all about organized and detailed skills. They also can communicate amazingly and can adapt to any circumstances. People who enjoy reviewing financial statements and examining data are absolutely fit for the position.
Can An Accountant Become A Financial Analyst?
Oh! I see you want to become a financial analyst because being an accountant for years has started to bore you.
I just want to tell you this before I go further. Do you know how blessed you are coming from an accountant background?. You already know what debits and credits are all about. Many financial analysts don’t even bother to know these terms in depth.
You will also find things a bit hard to execute at first like predictive analytics that a professional financial analyst does base on what they have understood about business drivers. But with time you will learn that too. Therefore it is totally [possible to become a financial analyst from being an accountant.
Financial Analyst Vs Accountant Salary
The national average salary for a financial analyst is 71,345 dollars a year, while accountants get paid 54,603 per year.
Financial analysts make more money than an accountant and their salary rates are quite high. Statistics say that by the year 2029 accountants will have a 4% growth rate and financial analysts 5%.
Frequently Asked Question (FAQS):
Q1: Do Accountants Or Financial Analysts Have Complete Control On The Company’s Money?
A: no, they don’t. The business owner has complete control. They just suggest advice and offer data, they are not allowed to approve invoices for the payments.
Q2: What Software Do Accountants And Financial Analysts Use?
A: The software they use is Quickbooks, considered to be the most popular software for handling finances. Other than that, they also use FreshBooks, Xero, Wave financial, and Zoho Books.
Wrapping It All Up
Here you go with financial analysts vs accountants. You have been provided all the information that you will need to know about them.
Leave a comment below in the comment section and share your story with us. I hope this article has helped you in one way or the other.
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