Accounting vs. Finance: Key Differences Explained

If you’re exploring business majors, you might begin by comparing finance and accounting, two closely connected disciplines that typically play central roles in the business world. Although both fields work with financial information, the focus of each discipline differs significantly.

Understanding these distinctions may help you determine whether an accounting or finance degree may better support your interests and long-term goals.

What Are Some Key Differences Between Accounting and Finance?

When comparing accounting and finance, the two fields differ in purpose, focus, and how they use financial information.

Primary Purposes

• Accounting typically focuses¹ on recording, classifying, and reporting financial transactions. Accounting may also include analyzing and summarizing these activities to produce financial statements that reflect a company’s financial position. 

• Finance typically² focuses on managing money, assets, and capital over time. It may involve analyzing financial data, making investment decisions, planning budgets, and assessing financial health for individuals or organizations.

Time Orientation

• Accounting may be historical¹ and retrospective: It documents what has already occurred in an organization’s financial records. This typically includes producing balance sheets, income statements, and cash-flow summaries.

• Finance is generally² forward-looking: It uses historical accounting data, market trends, and financial modeling to forecast performance, evaluate risk, and support financial strategy.

Scope and Focus

• Accounting roles and responsibilities¹ typically focus on compliance, accuracy, and proper documentation of financial transactions.

• Finance roles and responsibilities² may focus more so on financial planning, risk management, evaluating financial trends, and interpreting financial performance to guide strategic decisions.

Decision-Making vs Documentation

• Accounting typically¹ ensures that financial records are accurate and compliant with generally accepted accounting principles (GAAP). It may provide the financial foundation for reporting and auditing.

• Finance typically uses accounting outputs² as inputs for analysis, investment decisions, and strategic planning. Finance professionals may assess cash flow, company finances, and capital allocation to support financial goals.

Stakeholders and Users

• Accounting outputs are typically¹ used internally by management and externally by regulators, investors, or creditors.

• Finance outputs are typically² used to guide decisions about investments, corporate strategy, and financial management, influencing how an organization or individual allocates resources over time.

Earning a Degree in Accounting or Finance

Choosing between an accounting degree and a finance degree often begins with examining the details of each program and what career paths may look like.

Accounting Degree Programs

Accounting degree programs³ like the online program at Rasmussen University may emphasize managerial accounting, financial reporting, account reconciliation or payroll and bookkeeping, helping to prepare you to work with financial documents, maintain financial records, and ensure compliance with established professional principles such as GAAP.

Finance Degree Programs

A finance degree program at Rasmussen University, on the other hand, typically⁴ emphasizes the forward-looking aspects of managing an organization’s finances. Coursework may cover concepts in personal finance, money and banking and investment portfolio management. As a student, you may learn how to build financial models, utilize theories and concepts to analyze and address practical challenges in global financial markets, assess risk management and communicate those findings to diverse audiences.

Both accounting³ and finance⁴ pathways typically begin with a bachelor’s degree, although some may pursue finance or accounting certificates⁵ or advanced study depending on their interests. Accounting majors may explore topics such as corporate accounting, management of financial documents, or preparation of tax returns, while finance majors may concentrate on market analysis, forecasting, or financial management.

Typical Career Paths in Accounting

Accounting professionals typically work⁶ in corporate settings, government agencies, or public accounting firms.

Typical career paths in accounting may include:

• Accountant

• Auditor

• Cost accountant

• Managerial accountant

• Accounts payable specialist

• Accounts receivable specialist

• Financial analyst

Some accounting professionals may also pursue certification as a Certified Public Accountant^® (CPA) through organizations such as the National Association of State Boards of Accountancy (NASBA^®), depending on their interests and career direction.

Typical Career Paths in Finance

Finance professionals may explore a variety of analytical and planning-focused career paths in settings⁷ such as investment firms, corporations, government, or nonprofit organizations. 

Typical finance career paths may include:

• Financial analysts

• Financial managers

• Budget analysts

Career Development and Continuing Education

Students in both disciplines may choose to pursue advanced degrees or professional credentials.

Accounting students may consider⁷ the Certified Public Accountant^® (CPA) credential, which typically emphasizes auditing, taxation, and financial accounting.

Finance students may pursue⁴ credentials such as the Chartered Financial Analyst^® (CFA) or Certified Financial Planner^®, which may emphasize investment analysis or financial planning.

Choosing Between Accounting and Finance

Deciding between accounting vs finance depends on whether you prefer working with structured financial records or interpreting financial data to support planning and strategy. If you’re someone who enjoys detailed documentation, compliance, and reporting, you may gravitate toward accounting. If you prefer analyzing markets, forecasting outcomes, or developing financial strategy, you may prefer finance.

By understanding how finance and accounting differ in focus, coursework, and typical career paths, you can examine which subject may align with your interests and preferred working style.

Interested in pursuing an accounting career? Learn how to become an accountant and take the next step toward your professional goals.

American Institute of Certified Public Accountants^® is a registered trademark of the AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (CORPORATION; DISTRICT OF COLUMBIA, USA).
NASBA^® is a registered trademark of National Association of State Boards of Accountancy, Inc. (CORPORATION; DELAWARE, USA).
Chartered Financial Analyst^® is a registered trademark of CFA INSTITUTE (NON-STOCK CORPORATION; VIRGINIA, USA).
Certified Financial Planner^® is a registered trademark of CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS CENTER FOR FINANCIAL PLANNING, INC. (CORPORATION; COLORADO, USA).
Robinhood^® is a registered trademark of Robinhood Markets, Inc. (CORPORATION; Delaware, USA).
NetSuite^® is a registered trademark of NetSuite Inc. (CORPORATION; DELAWARE, USA).

¹NetSuite^®, Accounting Overview, at https://www.netsuite.com/portal/resource/articles/accounting/accounting.shtml (accessed Dec. 8, 2025).
²Robinhood^®, What Is Finance?, at https://robinhood.com/us/en/learn/articles/5sCpX8sMV5KMRaGhYBe2UK/what-is-finance/ (accessed Dec. 8, 2025).
³Rasmussen University, Accounting Degree Program, at https://www.rasmussen.edu/degrees/business/accounting/ (accessed Dec. 8, 2025).
⁴Rasmussen University, Finance Degree Program, at https://www.rasmussen.edu/degrees/business/finance/ (accessed Dec. 8, 2025).
⁵Rasmussen University, Accounting Certificate Program, at https://www.rasmussen.edu/degrees/business/accounting/certificate/ (accessed Dec. 8, 2025).
⁶Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Accountants and Auditors, at https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm#tab-3 (accessed Dec. 8, 2025). Employment conditions may vary in your area.
⁷Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Financial Analysts, at https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-3 (accessed Dec. 8, 2025). Employment conditions may vary in your area.