Finance vs Accounting Which Is Better?

Many students get confused between finance and accounting. Both are related to money, numbers, and business. Both fields also give good jobs and high salary. So it is natural to ask:

Finance vs Accounting Which is better for me?

In this simple and informative blog, we will understand:

What is finance?
What is accounting?
Main differences between finance and accounting
Courses you study in both
Skills needed in each field
Job roles and salary idea (with easy example and small calculations)
How to decide: which is better for you?

Language will be easy, like class 11–12 level, so that every reader can understand clearly.

What Is Accounting?

Accounting is like the language of business. It records and reports all the money-related activities of a business.

Simple meaning

Accounting is the process of recording, classifying, summarizing and reporting financial transactions of a business.

In simple words:

Money comes in → record it
Money goes out → record it
At the end of month/year → prepare reports (financial statements)

What does an accountant do?

An accountant:

Records all transactions in books
Prepares balance sheet, profit and loss statement, cash flow statement
Checks if all entries are correct
Helps in tax calculation
Supports management with financial information

Example of accounting work (very simple)

Suppose a small shop has these transactions in one month:

Sales: $10,000
Purchases (goods bought): $6,000
Rent: $1,000
Salaries: $1,500

The accountant will calculate profit:

Sales = $10,000

Less: Purchases = $ 6,000

Less: Rent = $ 1,000

Less: Salaries = $ 1,500

———————————

Profit for the month = $ 1,500

So the owner now knows the profit = $1,500.
This is a basic example of accounting.

What Is Finance?

Finance is about managing money so that it grows and is used in the best possible way.

Simple meaning

Finance deals with planning, investing, borrowing, and managing money to create more value.

In simple words:

How to raise money (loans, shares, etc.)
Where to invest money (projects, stock market, bonds, etc.)
How to manage risk
How to maximize returns for owners/shareholders

What does a finance professional do?

Someone in finance may:

Analyse which project will give more profit
Study stock market and suggest investments
Manage company budget and future financial plans
Work in banks, investment firms, mutual funds, corporate finance, etc.

Main Difference: Finance vs Accounting

Let’s understand it in a very easy way:

Point	Accounting	Finance
Main focus	Recording and reporting past transactions	Planning and managing money for future growth
Time orientation	Looks at past and present	Looks at present and future
Work type	Detailed, rule-based, documentation	Analytical, strategic, decision-making
Common job roles	Accountant, auditor, tax consultant, CPA	Financial analyst, banker, investment manager
Personality fit	Patient, detail-oriented, likes rules	Curious, analytical, likes markets and risk

You can remember it like this:

Accounting = “What happened with our money?”
Finance = “What should we do with our money now and in the future?”

Courses You Study in Accounting vs Finance

Common subjects in Accounting degree

Usually you study:

Financial Accounting
Cost Accounting
Management Accounting
Auditing
Taxation
Business Law
Corporate Accounting
Accounting Standards and IFRS

These subjects teach you how to record, check, and report financial data correctly.

Common subjects in Finance degree

In finance, you usually study:

Corporate Finance
Financial Management
Investment Analysis
Financial Markets and Institutions
Portfolio Management
Derivatives and Risk Management
International Finance
Banking and Insurance

These subjects focus on investment, markets, risk, and financial strategy.

Example Story: Riya (Accounting) vs Arjun (Finance)

Let’s take a small example to make it easy.

Riya – loves accounting

Riya likes working with details.
She enjoys solving numerical problems step by step.
She prefers stable and clear rules to follow.
She chooses Accounting as her major.

Later, Riya becomes a chartered accountant / CPA / company accountant.
She works in an office, prepares financial statements, checks books of accounts, and files taxes.
Her work is very important for legal and financial correctness.

Arjun – loves finance

Arjun enjoys reading about the stock market.
He likes to analyse which company’s share will go up.
He loves thinking about business strategies and future plans.
He chooses Finance as his major.

Later, Arjun becomes a financial analyst in an investment firm.
He analyses companies, makes spreadsheets, and suggests where to invest.
His work is important to generate high returns for investors.

Both are successful, but in different fields according to their interest and skills.

Skills Needed in Accounting vs Finance

Skills for Accounting

Accounting may suit you if:

You are detail-oriented
You like accuracy and clean records
You are comfortable with rules and standards
You don’t mind doing repetitive but important work
You are good at organizing documents

Skills for Finance

Finance may suit you if:

You enjoy analysis and problem solving
You like to study markets, business news, and economy
You are comfortable with risk and uncertainty
You can think strategically and long term
You enjoy making decisions using data

Salary and Job Opportunities (Simple View)

Both finance and accounting can give good salary and growth, especially if you gain experience and professional certifications.

Note: Actual salaries depend on country, city, company, and your experience.
Here we just use simple example numbers to understand the idea.

Example: Accountants

Suppose a junior accountant earns around $3,000 per month in a certain country.

Monthly salary = $3,000
Yearly salary = $3,000 × 12 = $36,000 per year

If the accountant works hard, gains a CPA or CA qualification, and gets promotions, after some years they might earn, say, $6,000 per month.

Monthly salary = $6,000
Yearly salary = $6,000 × 12 = $72,000 per year

So, income can double over time with experience and skills.

Example: Finance professionals

Let’s assume a junior financial analyst earns around $3,500 per month.

Monthly salary = $3,500
Yearly salary = $3,500 × 12 = $42,000 per year

After gaining experience, moving to investment banking or portfolio management, they may reach $8,000 per month or more.

Monthly salary = $8,000
Yearly salary = $8,000 × 12 = $96,000 per year

So finance roles, especially in investment banking, hedge funds, or big corporates, may give higher top-level salaries, but also more stress and competition.

Important point

This does not mean finance is always better than accounting. It depends on:

Your skills
Your interest
Your performance
Country and industry growth

A talented accountant can also earn very high income in big firms or by starting their own practice.

Where Do Finance and Accounting Professionals Work?

Common places for Accounting jobs

CA / CPA firms
Corporate accounting departments
Government departments
Banks and financial institutions
Tax consultancy firms
Small and medium business offices

Common places for Finance jobs

Banks and NBFCs
Investment banks
Mutual fund companies
Corporate finance departments
Insurance companies
Financial advisory firms
Stock broking and trading firms

You can see that both fields overlap in many places (like banks, corporates), but job roles are different.

Simple Calculation: How Finance Uses Accounting Information

To understand their relationship, let’s take one more small example.

A company is deciding whether to start a new project.

Initial investment required = $100,000
Expected profit per year from project = $25,000
Project life = 5 years

Step 1: Accounting side

Accountants will:

Record the initial investment of $100,000
Every year, record revenue, expenses, and profit
Show actual profit in financial statements

Step 2: Finance side

Finance professionals will analyse whether this project is a good decision.

They may calculate total expected profit over 5 years:

Profit per year = $25,000
Total profit over 5 years = $25,000 × 5 = $125,000

Then they compare:

Total profit (5 years) = $125,000
Initial investment = $100,000
Net gain = $125,000 − $100,000 = $25,000

They may also check time value of money (like NPV, IRR), risk, and alternatives.
If the project’s return is higher than other options, they will recommend doing it.

Here you can see:

Accounting provides the numbers.
Finance uses those numbers to make decisions.

Certifications in Accounting and Finance

Popular accounting certifications

CPA (Certified Public Accountant)
CA (Chartered Accountant)
CMA (Certified Management Accountant)
ACCA (Association of Chartered Certified Accountants)

These certifications help accountants to get better jobs, higher salary, and global recognition.

Popular finance certifications

CFA (Chartered Financial Analyst)
FRM (Financial Risk Manager)
CFP (Certified Financial Planner)
MBA in Finance

These are useful for careers in investment analysis, portfolio management, risk management, and financial planning.

Finance vs Accounting: Which Is Better for You?

Now we come to the main question: Which is better – finance or accounting?

The honest answer:

There is no single “better” field. The right field is the one that matches your interest, skills, and career goals.

Choose Accounting if

You like detailed work with numbers
You enjoy maintaining accurate records
You feel comfortable with rules, laws, and standards
You want a stable and secure career
You are okay with a more predictable work pattern

Choose Finance if

You enjoy analysis and strategy
You like following stock markets and business news
You are comfortable with risk and decision-making
You want to work in banking, investments, or corporate finance
You are ready for a possibly high-pressure but high-reward environment

Self-check questions

Ask yourself:

Do I enjoy solving structured problems with clear rules?
- If yes, you may prefer accounting.
Do I enjoy thinking about business ideas, markets, and investments?
- If yes, you may prefer finance.
Do I want a career that is more stable and predictable?
- Accounting can be a better fit.
Am I okay with competition, long hours, and pressure, in return for possible higher income?
- Finance (especially investment banking) may suit you.

Can I Study Both Finance and Accounting?

Yes, many universities offer:

Combined degrees: B.Com in Accounting & Finance, BBA in Finance and Accounting
Major-Minor options: Major in Accounting, minor in Finance or vice versa

Also, even if you study only one, in real life:

An accountant must understand some basic finance concepts.
A finance professional must read and interpret financial statements prepared by accountants.

So, finance and accounting are like two sides of the same coin. They work together to help businesses grow.

Also Read: What Is The 1234 Financial Rule?

Final Conclusion: Finance vs Accounting Which Is Better?

Let us summarise everything in simple points:

Accounting focuses on recording, reporting, and compliance.
Finance focuses on planning, investing, and managing money.
Accounting looks more at the past and present numbers.
Finance looks at the present and future decisions.
Both fields offer good career opportunities and salaries.
Finance may give higher earning potential in some roles, but also more stress and competition.
Accounting provides stability, clarity, and strong demand in every type of business.

So, instead of asking “Which is better in general?”, the smarter question is:

Which is better for me – based on my interests, strengths, and dream career?

If you choose the field that matches your natural interest, you will:

Enjoy your studies more
Perform better in exams
Grow faster in your career
Feel more satisfied and confident in life

Take some time, think honestly about your likes and dislikes, talk to professionals in both fields if possible, and then make your choice.

Whichever you choose – finance or accounting – if you work hard, keep learning, and stay ethical, you can build a successful and respected career.