Financial Analyst vs. Accountant: An Overview

There are plenty of jobs in the business world for those who love analytics and numbers—two of the most common being financial analyst and 澳洲幸运5开奖号码历史查询:accountant. Wh♏ile there is some overlap between these tw♏o professions, they focus on different areas of money management.

A financial analyst looks to past and current trends to help achieve a future reality, while an accountant may review a company's financial data on a day-to-day basis. Many financial analysts use reports generated by accountants to make recommendations about how best to use company resources.

Financial Analyst

Financial analysts tend to work with the overall picture. They review financial decisions based on current 澳洲幸运5开奖号码历史查询:market trends, stated business objectives, and possible investment options. These professionals' evaluations help determine whether a project or venture is worthy enough for investment.

Analyst🔜s may focus on corporate or investment financial analysis. In corporate financial analysis, analysts work with accounting departments internally to help make decisions about which projects are worthy of investment.

Analysts who work in investment financial analysis, however, work externally to make top-down or bottom-up analyses using 澳洲幸运5开奖号码历史查询:macroeconomic or microeconomic approaches to find investment opportunities.

There are two main types of financial analysis—澳洲幸运5开奖号码历史查询:fundamental analysis and technical ꦅanalysis. An analyst who uses fundamental analysis revie🔜ws and evaluates data from a company's financial statements in order to determine its ♍value.

Education and Credentials

A degree in finance is probably most beneficial for aspiring financial analysts, although mathematics or economics could also suffice. A 澳洲幸♏运5开奖号码历史查询:Master of Business Admi꧙nistration (MBA) may he📖lp a financial analyst, but it is ꦅnot always required.

Many financial analysts are 澳洲幸运5开奖号码历史查询:certified public accountants (CPAs), but most analysts generally choose the 澳洲幸运5开奖号码历史查询:chartered financial analyst (CFA) designation. Unlike the CPA, which is focused on a professional understanding of public accounting standards in the United States, the CFA is focused on those who actively make investment decisions on behalf of c🧔lients or an employer.

Having both titles is considered a major advantage for nearly any career in the business world. Earning both requires a significant mastery of business a🧔ccounting and investment knowꦰledge.

Job Market

Financial analysts earned a median annual salary of $99,010 in 2023. Top earners brought home nearly $175,840 and the lower rung made approximately $60,830, according to the Bureau of Labor Statistics (BLS). The need for financial analysts is likely to grow by about 8% between 2022 and 2032.

Financial analysts tend to earn the most in large financial hubs, such✱ as New York City or San Francisco. Bridgeport, Connecticut, is also a lucrative destination for analysts. Increased regulations and market complexity are driving the growth for financial analysts, particularly among larger firms with a lot of assets to manage.

Accountant

Accountants are much more interested in specific and exact details, day-to-day operations, financial accuracy, and taxes of an entity. An accountant describes the present reality of a company or an individual's finances and performs duties like auditing or financial statement analysis.

Education and Credentials

In order to become an accountant, many professionals first pursue a bachelor's degree in accounting or another related discipline such as math or business. Some firms may prefer someone who has a graduate degree.

Credentials are extremely important to accountan🐻ts and financial analysts. Entry-level accounting jobs may require a recognized professional title, but advancement certainly depends on it. Pursuing a degree in accounting is ♍the most obvious undergraduate course of action for a future accountant.

Each career choice has one dominant professional certification. For accountants, it is the title of CPA that is bestowed by the Natio๊nal Association of State Boards of Account🍬ancy (NASBA) and the American Instit꧂ute of Certified Publꦆic Accountants (AICPA). This is probably the most widely known and recognized professional designation in the financial industry.

Job Market

According to the BLS, the median annual salary for an accountant in 2023 was $79,880. The top 10% of U.S. accountants earned over $137,280, while those in the bottom 10% of the industry earned less than $50,440.

The need for accountants is likely to grow by about 4% between 2022 and 2032, according to the BLS. This is largely due to an uptick in demand for those in the field, increased 澳洲幸运5开奖号码历史查询:globalization, more stringent regulations, and a stronger economy.

Special Considerations

Both careers likely appeal to a similar subset of data-crunching, detail-oriented, and analytical individuals. The major diffe♓rences boil down to whether you enjoy gathering data to make recommendations or whether you prefer gathering data to ensure accuracy.

If it's the former, then you may want to consider becoming a financial analyst. But if you're attracted to the latter, then accounting may be your forte.

Accounting is a better field for the investigative mindset, where audౠiting and the review of financial statements comprise a large portion of the job. It is a little bit easier to break into the accounting field for two reasons.

The first reason is there are more accounting jobs than financial analyst jobs. The second reason is 🍃accounting requires less real-world experience, meaning students who understand accounting rules can ꦅmore easily step into an entry-level accounting position.

Many accountants and financial analysts work typical 40- to 50-hour weeks, get paid time off, and normally don't work on weekends. Some financial analysts remain available after normal office hours via email or phone, but the job is not as demanding as many other professions in the industry.

Travel may be a recurring pꦅart of either job. Fin꧑ancial analysts travel to meet with clients, while accountants travel to perform audits or attend seminars and conventions. For financial analysts who work for major investment banks, travel could be a significant characteristic of the job.

The Bottom Line

A financial analyst and an accountant are two 澳洲幸运5开奖号码历史查询:careers that use math and analysis, but these career paths can be quite different in several ways. They each require different backgrounds and certifications, and their average salaries differ. Consider both the pros and cons of each profession as you decide which one suits you.