What Are the Differences Between Financial Analysts And Accountants?

In the business world, both accountants and financial analysts play a significant role. Even those who want to pursue a career in finance, for them, both these career options are great to pursue. Though both of these work with financial reports and help organisations in making sound decisions, they focus on distinct areas of money management.

Continue reading to learn more about financial analyst vs accountant and analyse which one is better suited for your career.

Businesses and individuals usually hire financial analysts to examine and discern economic trends in the market so they can ascertain where to invest. They use these various data trends to support and analyse any recommendations they counsel their clients on.

While working in the investment industry, a financial analyst analyses the finances of the company and based on that, constructs different models that predict the impact of its asset management, personal investment, leveraged borrowings, mergers, acquisitions, etc. 

Here are some other job responsibilities of a financial analyst:

• Evaluate financial documents and then, depending upon the business objectives and current market trends, determine whether making an investment is worth it or not.
• Create financial reports that describe the economic condition of the company and compare it against its past performance and its competitors.

source: marketbusinessnews

Between a financial analyst and an accountant, the latter is a financial professional who takes care of the daily financial operations in an organisation or business. They are responsible for discussing with clients any recommendations regarding financial decisions and for preparing tax documentation. Also, they help maintain the investments and money in order for the businesses as well as individuals.

Often they maintain financial spreadsheets for tracking their client’s payments, investments, loans, and invoices. They also possess a good understanding of tax laws and codes, thus assisting in keeping all documents within legal regulations and ensuring clients adhere to them.

Both accountants and financial analysts act as cornerstones for businesses and both of them perform an important task for the organisation. As a profession, both these options are excellent, viable, and stable career options. If you are interested in analysing financial markets holistically and always focusing on the big picture, then a financial analyst will be the most viable option for you.

However, if you are interested in making yourself familiar with different traits and characteristics of tax preparation and documentation, then an accountant will be the most suitable option for you to go with.

Thus, both financial analyst vs accountant careers appeals to more or less similar dealing with data, you can choose the one per your interest and skills.