Accounting and finance jobs might sound similar, but there are key similarities and differences. If you are thinking about looking for work in these fields, it’s important to understand exactly what these are.
The difference between accounting and finance is that the former focuses on the day-to-day flow of money in and out of an organisation, while the latter is a broader term for the management of assets and liabilities and the planning of future growth.
If you want to exercise high-level control over a company’s strategy, finance would be for you. If you wish to take a detailed look at a company’s books, you’re likely more interested in accounting.
Accounting looks back on a company’s financial transactions and compliance with laws and standards, whereas finance looks to the future acquisition of assets, growth of money, and/or mitigation of losses.
Career options
Choose a career in accounting and you will probably report to a company’s chief financial officer. You could have a job title like controller, tax manager, fund accountant, valuation analyst, or financial reporting accountant.
Alternatively, you could become a tax accountant, bookkeeper, treasurer, or auditor for yourself, a business, non-profit, or the government.
As an accounting professional, you’ll be tracking and reporting flows of money and ensuring compliance with best practices.
If you choose finance, you could be a financial analyst, investment banker, financial examiner, personal financial adviser, or money manager.
You could work in consulting or corporate finance. Banking and insurance underwriting are also possibilities, and entrepreneurship is another option.
Salaries
There’s a wide salary range in the fields of both accounting and finance. Both fields have strong growth prospects between now and 2032.
According to Jobstore, the median pay for a financial analyst in 2020 was RM65,800 per year. Between 2022 and 2032, the number of such jobs is projected to grow by 12%, a faster-than-average rate.
Accountants and auditors have a median pay of RM65,000 per year. The number of jobs is projected to increase by 11% between this year and 2032, which is also an above-average growth rate.
Here’s an example at the lower end of the scale: the median pay for bookkeeping, accounting, and auditing clerks in 2020 was RM36,000 per year. The number of jobs is projected to decline by 8% between this year and 2032.
Salaries in finance tend to be high, but there are exceptions. One example is fundraisers, the median pay of which is RM70,000 per year. However, the outlook is for 9% growth between this year and 2032, which is above average.
The bottom line
If you work in accounting, your recording and reporting of financial transactions will support the work of the finance team. Likewise, if you’re in finance, you depend on the clear and accurate work of the folks in accounting.
Both fields require a high level of skill, education, and comfort with quantitative analysis. And, with luck and hard work, both have the potential to provide a challenging career that’s well compensated.
This article first appeared in jobstore.com, an online job site that specialises in providing jobseekers with the latest job opportunities by matching talented individuals with reputable companies in Malaysia. Find your dream job with over 40,000 job vacancies in Malaysia.