Choosing a major in college is overwhelming. You have a huge selection of choices, each one unique with different focuses, interests, and careers. If you’re leaning towards business, two of the most popular majors are accounting and finance. They might sound the same and share some similarities, but they’re different majors with different focuses, career paths, and everyday work.
If you’re starting college and wondering which major is right for you, this article is here to help you understand what each major is about, how they compare, and how to pick the one for you.
What You’ll Study
Finance is a forward-looking major, always asking “What’s next?” It crunches the numbers to make plans for money, assets, investments, and liabilities. Finance majors might study:
- Economics
- Corporate finance
- Risk management
- Financial markets
If you’re more into “what could we do with the money,” then finance might be the major for you.
Accounting, on the other hand, is all about tracking, recording, and reporting financial activity. They ask “What happened?” They work with past and present data, like financial statements, tax returns, and audits, to make sure everything is accurate. An accounting student might study:
- Financial auditing
- Budget analysis
- Tax accounting
- Financial reporting
If you like figuring out the past by looking at detailed financial records, then accounting is a good major for you.
What You’ll Need
Both majors require some skill in math and statistics, as these are the basics of the degree. But as you get to your higher-level courses, finance and accounting start to diverge.
To work in corporate finance, you’ll need essential skills in:
- Corporate budgeting
- Cash flow analysis
- Financial forecasting
- Corporate investing
For accounting, skills you can build for success include:
- Recording transactions
- Collecting information
- Compiling reports
- Summarizing performance
What To Do After Graduation
Finance and accounting both deal with math and money, so their careers do, too. If you want to go into finance, some of the common career options are:
- Commercial Banking
- Financial Consultant
- Financial Trader
- Hedge Fund Manager
- Investment Banker
If you’re leaning more towards accounting, here are some common career options:
- Accountant
- Auditor
- Payroll Administrator
- Risk Assessment
- Tax Advisor
What’s Right for You
While the finance and accounting majors share common ground in money, business, and numbers, their focus, skills, and careers are different. The biggest difference to remember is that finance asks “What happens next?” and accounting is more focused on “What happened last?”
Choosing the major that aligns with your interests, strengths, and future goals can make a big difference in your college experience and career path. As you start out on your path, take the time to explore both majors, ask questions, and see what you like best. The right major might just surprise you.
Citations
TopUniversities — Accounting vs. Finance: Which Should You Study?
Harvard Business School Online — Finance vs. Accounting: What’s the Difference?
Gwynedd Mercy University — Finance vs. Accounting: What’s the Difference, and Which Is Right for You?