Thursday, May 26, 2022

Finance vs Accounting – Are They Both Same? | Know the Top Differences

Hello everyone hi welcome to the channelof WallStreetmojo friends today we have a topic which is finance versusaccounting I mean what is exactly the better option we'll try and understandthis difference you don't need to worry you know we will be discussing manytopics here so that you know you may have a clear idea regarding what exactlyis good see many students think that you know Finance and Accounting steam are asystem from the same domain from the same domain of expertise but you know ifyou ask an accountant or a finance guy who has been working as a in a corporatefor a long time they would tell you how different they are in terms of thenature scope work or the area of explain .

This tutorial will look at both of thisdomain and investigate how different they are in yes they are related butthey are not the same and to be good in the finance you need to know the basicaccounting but that does not mean that both are the same thing we willdiscussed in depth will make an in-depth analysis of this and what we will do iswe will prepare our table over here we will see the comparison part you financeover here and the accounting part here will start with the difference the firstyou know I want you to understand what exactly it this is all about see financeis basically a science of say of planning it's a science of planning thedistribution of the assets within the .

Company and if you see for accountingaccounting on the other hand is basically what we call as the art ofsummarizing things summarizing the reports recording of the financial latertransactions and so on and so forth second what are the career optionfinance you have investment banking you have corporate finance then you have equity research yourprivate equity risk management probably quantitative analysis project finance andso called the technical analysis in accounting you have the career optionslike you know forensic accounting you .

Have management accounting then you havesort of what is called as public accounting then financial accountingthen you have auditing in this auditing of both and also government accountingso all of this career option in both both of the scenario the third is pointof difference is what sort of education you need to obtain in case of financebachelors in finance will be suitable for you or you know accountancy willalso be fine in this in terms of bachelors economics bachelor's ineconomics will also go and good MBA is a masters option you know CFA is their frmor PRM is their CFP certified financial planner and so on and so forth are thereover here this will remain the same the .

Bachelor's in accounting instead of acut economics you have a chartered accountancy CA you have CPA ACCA Seemayou have Seema here you have CMA so all this are the education drivers that thatwill help you to reach there now which are the top forms that will hire you inthis kind of scenario companies like Blackstone Goldman Sachs you have MorganStanley we have Bank of America Merrill Lynchcredit Swiss city bank HSBC UBS bank JP Morgan is there and so on and so forthit goes the list is just too long over here in accountancy you have PWC KPMGthese are the 4 big firms Deloitte then you have E & Y that'sthe Ernst & Young .

Grant Thornton then you have video of usa baker Tillyand so on and so forth now how exactly the work life will go in this the fourththe fifth point is the work life well it depends on the sub domain in the financeyou are working for like you know let's say in investment banking if you'reworking it's brutal equity research IB I'll say this isreally brutal if you are in equity research the analysts have a balancework life depending on the area you may have to work for let's say 10 to 18hours a day in accounting you can say there is a balanced life there is a muchbetter than the Financial Analysts work .

Is not urgent all the time of the yearnow the sixth part that is the travel part that is involved so mostly they arenot required to travel much you can safely assume that you know 90% of thetime you spent in the office over here also no not much travel is involved nowwhat are the key words that that they use in in this particular field sofinancial modelling is one thing that they use valuations mergers andacquisitions NPV IRR and so on and so forth over here journal ledger balancesheet CFS cash flow statement income statement and so on and so forth nowwhat are the exit opportunities after this well like for example in investmentbanking moving into from IV to PE the .

Private equity or on or a research sellside analysts moving into sells I to by side analysts profile over here you canmove to as a CFO or a managerial position or maybe corporate finance nowwhat are the networking opportunities what are the networking opportunitieswell financial management professional earns closely around $84,000 per annum on an average the median annual salary of anaccountant in u.s. is $65940 dollars per annum now what are thepros and cons the pros if you see your option in thefield are much more than any other profession and you need to know yourcareer goals and you can pursue any .

Financial career accordingly the successin the finance domain you know mainly depends on the what is called as thetechnical skills and much lesser on the personality traits but over here as anaccountant you can move to any different careers you can work as an auditor youcan work as a tax consultant or choose to go for management accounting the bestpart of accounting is the work/life balance 11 what are the cons well thecompensation the compensation in most of the finance profession does not reachsix-figure marks few do if you want to get compensated well above the averageyou need to work in yourself work-life balance is dependent on you know thedomain of the work but the work pressure .

Always prevents now this domain is verynarrow and rarely do you do you have any opportunity to specialize in somethingreally very broader so will this were all the differences I hope you have gotreal idea regarding what is finance in accounting so first you know let'sunderstand well this is the difference between the finance and accounting as ofnow all this points are pretty much self-explanatory in itself and probablyyou should take a decision based on your career goals what exactly you want to gofor in your life and then accordingly choose you can take this point ofcomparisons to decide exactly what is good and what is bad for you so that'sit for this particular career option .

Sessionthank you very much joining the session

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