Finance vs. Accounting: Choosing Your Path at the Eller College of Management

As a potential graduate student, you might find yourself at a crossroads, wondering, ‘What is the difference between finance and accounting?’. 

Both fields offer exciting career prospects and play crucial roles in the business world. Let's dive into what each discipline entails and how they can shape your future.

What is Finance?

Finance focuses on how organizations and individuals manage their money, including decisions about investing, borrowing and lending. It's a broad field that encompasses:

• Investment management (recommending and making investments for a company or hedge fund)
• Private finance (individual or company financial management)
• Corporate finance (how companies fund operations and make investment decisions)

Finance has its roots in statistics, economics, and mathematics. One of its fundamental concepts is the time value of money – the idea that a dollar today is worth more than a dollar in the future due to its earning potential.

What is Accounting?

Accounting involves recording and collecting financial information, organizing and compiling reports, analyzing and communicating operating results, budgeting, planning, and providing reliable information for decision-making. It's often described as the language of business.

While some view accounting as primarily focused on past and present financial data, many accounting roles involve forward-looking activities like budgeting and forecasting. Accounting professionals are often at the heart of important business decisions.

What can I do with a career in finance or accounting?

Both finance and accounting offer excellent career opportunities. Here's a glimpse at the placement statistics from Eller:

Finance

• Ninety-seven percent of main campus Eller Master of Science in Finance (MSF) students with legal right to work in the U.S. accept employment within 90 days of graduation.
• Seventy-four percent of all main campus MSF students (domestic and international) accept employment within 90 days of graduation.
• Top employers include Goldman Sachs, Citi, Intel, Walton Global and Raytheon.
• Common roles include senior financial analyst, investment analyst, financial associate, portfolio manager analyst and credit risk analyst.
• A Master of Science in Finance can significantly increase your earning potential. The median salary for someone with a finance degree is $99,580 according to the U.S. Bureau of Labor Statistics.
• Graduates working in financial services often receive significant bonuses and pay raises within their first three years of employment.

Accounting

• One hundred percent of main campus Master of Accounting (MAcc) and Master of Science in Accounting (MSA) students with legal right to work in the U.S. had accepted employment by graduation.
• Many graduates enter public accounting, with others going into industry, financial services, or government/non-profit sectors.
• Top employers include Deloitte, EY, PwC, KPMG, Protiviti, Honeywell and Texas Instruments
• Common roles include accountant, auditor, budget analyst, credit analyst, financial analyst, controller  and tax preparers
• An Accounting Master’s Degree can significantly increase your earning potential. The median salary for someone with an accounting degree is $79,800 according to the U.S. Bureau of Labor Statistics.
• Graduates working in public accounting often receive significant pay raises within their first five years of employment.

Program Highlights

Finance

• Eller offers two platforms for its Master of Science in Finance (MSF) program: online and on-ground. 
  • The online MSF platform provides flexibility for working professionals or those balancing other commitments, offering the same high-quality education in a virtual format.
  •  The on-ground platform provides a traditional, in-person learning experience with opportunities for face-to-face networking, collaborative projects, and campus resources.
• Eller MSF students manage over $3 million across two student-run portfolios.
• The MSF program is recognized by the CFA® Institute University Recognition Program.
• Eller MSF students earn the same degree, in either format, from award-winning faculty, with the same core curriculum and the same accreditation.

Accounting

• The Dhaliwal-Reidy School of Accountancy (DRSOA) at Eller offers two platforms for its Master of Science in Accounting (MSA) program: online and on-ground; and also offers a Master of Accounting (MAcc)on-ground.
  • The online MSA platform allows students to complete their degree remotely, providing flexibility for those managing professional or personal responsibilities while still receiving the same rigorous accounting education.
  • The on-ground platforms, offer in-person experiences with access to campus resources, networking opportunities, and face-to-face interaction with peers and faculty.
• The DRSOA hosts a dedicated job fair each semester, bringing in about 40 firms and companies.
• Master’s programs offer specialized content to prepare students for successful careers and the CPA exam, with various funding and scholarship opportunities available to support students.
• The DRSOA provides a mentorship program pairing new accounting students with award-winning faculty members.

Choosing Between Finance and Accounting

While finance and accounting share significant overlap, there are several key differences between these two fields.

Advice for Undecided Students

1. Consider embracing both disciplines. Understanding both finance and accounting will make you a more well-rounded professional.
2. Look at your career goals. If you want to be an accountant, pursue an Accounting graduate program. If you're aiming for a finance career, consider the MSF program and embrace learning more about financial statement analysis from an investment management perspective.
3. The main campus MSF/MSA Dual Degree program is an excellent option for those wanting a strong foundation in both areas.
4. Remember that a degree in accounting or finance can lead to roles in various business functions, offering a broad range of opportunities.
5. Look at professionals in roles to which you aspire to and understand how to bridge the gap between where you are and where you want to be.
6. Consider professional certifications. The CPA exam is crucial for many accounting careers, while the CFA charter is highly regarded in finance.

Ultimately, both finance and accounting offer rewarding career paths. Your choice should align with your interests, strengths, and long-term goals. Whichever path you choose, the Eller College is committed to helping you succeed in your academics and secure great job opportunities.

Take advantage of the resources, mentorship opportunities, and networking events available to you at Eller. Your journey to a successful career in finance or accounting starts here!

Ready to learn more?