Simplifying Life Insurance in India
What Are the Differences Between Finance And Consulting?
If you are in the early days of your career and looking to establish your profession in finance or consulting then this is the right page you have landed on. Here you will get a detailed overview of how you can make your career in finance and consulting.
It definitely depends on what professional degree you possess, what you are interested in, and what are your future prospects. Though both of these are highly demanded career paths, however, go through this piece on the difference between finance vs consulting, to make a sound decision.
What Do You Mean by Finance?
Finance is a broad term that basically refers to money management or how to channel money for various purposes. It is simply how an organisation or individual manages its financial resources. It includes a variety of things related to finance like budgeting, saving, lending, investing, spending and forecasting. It is much more than cash, it refers to the allocation as well as management of all monetary resources.
Finance is essential for any economy to function properly, deal with crises, and a lot more. The sole purpose of finance is to help the government, businesses, and individuals in managing, saving, and using money efficiently to the best of their ability. The foundation and success of any organisation are completely doomed without proper utilisation and management of monetary resources. Finance is mainly divided into 3 categories: personal, public, and corporate or business finance.
What Do You Mean by Consulting?
source: studiousguy
A consultant is not a specialist but only a generalist who possesses average knowledge regarding all fields of business and management. They are not restricted to finance, on the other hand, they provide consulting to clients for all things related to business administration. Some popular consulting job titles include the following:
- Business Consultant
- Marketing Consultant
- Staff Utilisation Consultant
- Practice Management Consultant
- Safety Consultant
- Productivity Consultant
- Resource Planning Consultant
- Social Media Consultant
- Solutions Consultant
- Technical Consultant
What are the Differences Between Finance And Consulting ?
Now, you know about finance and consulting, but if you are still confused about which one to prefer- finance vs consulting, let’s drill down into the differences.
|
Parameters |
Finance |
Consulting |
|
Focus of Work |
The focus is on the result of the analysis being made, and not on the presentation of the task. |
Here the focus is on the presentation of the results. You need to convince the clients with the recommended solutions for their problems. |
|
Qualification Required |
CFA is the standard qualification required in finance. However, one can also choose their area of expertise depending on the niche and prefer courses like CIMA, PRM, FRM, etc. |
The only qualification that is needed for becoming a consultant is CMC or Certified Management Consultant. |
|
Knowledge and Skills Required |
Financial modelling is an essential skill. Additionally, you also should be proficient in MS Office products. |
You must know to process and analyse the data. Also, an in-depth understanding of business and various strategies is required. Be an expert in PowerPoint, Excel, etc. |
|
Soft Skills Required |
Excellent communication, negotiation, and writing skills are required. |
Excellent communication, presentation, ownership, and teamwork skills are required. Should be able to understand the client’s requirements. |
|
Career Options |
Quantitative Analysis, Risk Management, Investment Banking, Equity Research, Project Finance, Private Equity, Corporate Finance |
Strategic Consulting, IT Consulting, Management Consulting, and other areas. |
|
Work-Life Balance |
Depending on the subdomain in Finance which you are working, you might have to work for about 10-18 hours a day. |
Here the working hours completely vary on the project and the clients. On average, it took around 12 hours per day. |
|
Networking Opportunities |
Their networking is not as diverse, and they work mainly within the financial industry. |
They work for diverse industries and have a very strong alumni network. They often get the chance to network with diverse businesses, government, academics, etc. |
|
Exit Opportunities |
A Research sell-side analyst can move into a Buy-side analyst; or investment bankers can make a transition to Private equity, etc. |
They can become senior executives in the relevant field for which they are consulting. |
|
Travel |
They do not need to travel much. 90% of the time they try to spend in the office. |
They need to travel for about 25-75% of their time. |
|
Level of Knowledge |
The knowledge required should be exclusively finance-related. One should know about corporate finances, corporate law provisions, derivatives, etc. |
The knowledge level is broad and has information regarding all fields. |
|
Earning Potential |
With a specialised degree, you might earn an annual package of ₹ 5 lakhs to ₹ 10 lakhs. |
One can earn an annual package of ₹ 3 lakhs to ₹ 8 lakhs in the consulting field. |
Finance Vs Consulting - Which One Is Better?
Among finance vs consulting, both these professions are lucrative and good career options. If you like communicating with people, providing advice regarding various business administrations, and then undoubtedly consulting will be a better career for you. However, if you like to play with numbers, then it will be good to go with finance as your career.
Another aspect that is worth deciding which career option is better for you is whether you like to travel or looking simply for an office job. If you are seeking the latter one, then opt for a finance job. Also, professionals working in the consulting field are much more independent than those working in finance.
Still, confused about which one to choose finance vs consulting? Well, choosing a career or profession completely depends upon your abilities, interest area, skills, and knowledge that you have acquired so far.
So, make a career choice that seems more suitable for you!
FAQs on Differences Between Finance Vs. Consulting
Does consulting come under finance?
What are some main categories of consulting?
How can you make a career move from consulting to finance?
The following steps will help you transition to a financial advisor from being a consultant:
- Check what works in your favour
- Gain the necessary skills and educational qualifications required for finance
- Tell your story to investment bankers and ask for suggestions
- Consult different finance-specific firms
- Spin your resume or CV for investment banking roles.
Other Important Articles Related to Financial Planning & Analysis
Important Articles About Financial Planing
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
