For many business managers and executives, finance and accounting are often thought of as one and the same. However, the truth is quite different. Finance is actually broader in scope than accounting, with the exception of some specific areas. For example, many small businesses have finance departments, while large corporations often outsource their finance needs to investment banks or specialized finance firms. While both types of finance can be important to a company’s long-term success, they often operate in different markets and on different stages of the economy.
The primary difference between accounting or finance is usually that accounting only has a very narrow focus, while finance encompasses a wide variety of specializations, covering a plethora of topics in business, government, economics and personal finance. There are also many international specialties in finance that are not found in accounting. For instance, there are several subspecialties in finance that deal with insurance and venture capital. Also, different types of finance deal with different aspects of the global economy such as inflation, globalization, financial risk, and political risk. In addition, there are many international differences in how the finance and accounting sections of the MBA programs taught.
Therefore, it is important to determine what your area of concentration will be prior to enrolling in a graduate program in finance. Most finance specialists begin their careers as financial reporting specialists in accounting or auditing. Those specializing in accounting may go on to become economists, policy analysts, or management consultants. Whereas many MBA students choose to go on to become either financial managers or accountants, there are many who choose to go on to become teachers, researchers, journalists, or entrepreneurs. Therefore, it is important to know where your interests lie so that you can tailor your postgraduate degree towards the career path that most closely fits with your goals
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