Can an accountant become a financial analyst?
You can study accounting, business, or finance to become a financial analyst.
Education and Credentials
A Master of Business Administration (MBA) may help for a financial analyst, but it is not always required. Many financial analysts are certified public accountants (CPAs), but most analysts generally choose the chartered financial analyst (CFA) designation.
You can work in a number of roles with an accounting degree besides accounting. Some positions may include budget analyst, business and financial consultant, financial analyst, financial examiner, finance manager, management analyst or personal financial advisor.
Your experience as an accountant equips you with valuable skills that can be transferred to data analysis: Analytical Skills: Accountants are adept at analyzing financial data; this skill translates seamlessly into data analysis.
Taking into account those personality differences, there are also differences in the content of finance and accounting that can determine that one is harder than the other. Generally speaking, people consider accounting majors to be more difficult to study and pass than finance majors.
The dominant course for becoming a financial analyst is CFA, i.e. Chartered Financial Analysts; but its' not mandatory. The dominant course for becoming an accountant is CPA, i.e. Chartered Public Accountants, but its' not mandatory. Usually, a financial analyst makes more money than an accountant.
Financial analysts typically make more money than accountants, and they often have higher starting salaries. The U.S. Bureau of Labor Statistics estimates that accountants will have a 4% growth rate by 2029, while financial analysts will have a 5% growth rate by 2029.
Starting salaries for those with a bachelor's degree in finance are slightly higher than for those with a bachelor's degree in accounting. However, the difference is slight, and the gap quickly closes as the careers progress.
If a career primarily focused on finance falls into their strengths, desires, and career growth, a CFA designation would be the better choice. Alternatively, if they want to explore career advancement opportunities that revolve around accounting duties, they should be looking at a CPA certification.
A degree in finance, economics, business management, statistics, or related fields is beneficial but not a requirement. An internship during college years will help secure a full-time financial analyst position. After some years of experience, further education may be required, such as an MBA or CFA qualification.
How much do CFA vs CPA make?
CFA Charterholder vs. CPA Salary. Salaries can vary widely for both CFAs and CPAs based on location, experience level, and company size. That being said, according to Payscale the average salary for a CFA is $102,000 and the average salary for a CPA is $94,000.
Going from accountant to data analyst can be a logical career change for those looking to leverage their experience in accounting and finance into a broader role in analytics.
Many different roles in finance can benefit from CFA certifications. Investment bankers, portfolio managers, accountants, and risk analysts commonly obtain CFAs to make themselves more marketable and to improve their analytical skills. >> MORE: Explore the broader differences between financial analysts and accountants.
Trader is one of the most stressful jobs in finance. Traders may not work quite the crazy hours of investment bankers, but they have a sharper, more acute level of stress.
Competition for these jobs is fierce, especially among analysts new to the field. The Bureau of Labor Statistics projects 8.2% employment growth for financial analysts between 2022 and 2032. In that period, an estimated 68,000 jobs should open up.
Many analysts report that the hardest part of their job is communicating sophisticated analysis and insights to decision-makers in a way that is both comprehensible and actionable.
CFA vs CPA Exam difficulty
Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.
Finance professionals deal with aspects such as return on investment (ROI) and risk management, and accountants focus on items such as balance sheets and income statements. The field of finance offers more career choices but also less predictability. In some cases, careers in finance might offer higher pay.
Controller. In a corporate environment, a controller supervises all other accounting staff and usually reports to a chief financial officer or director of finance.
A controller, or comptroller, oversees the accounting operations of a firm, including managing staff. Because controllers' duties and responsibilities expand beyond that of an accountant, they typically command larger salaries.
Do accountants do financial modeling?
The mastery of financial forecasting and modelling is not just about expanding an accountant's skill set; it's a significant career catalyst. With these skills, accountants bridge the critical gap between data, technology, and business strategy, elevating their value in the professional landscape.
You don't need to be a math whiz to be an accountant. Your not going to use Algebra or Calculus to do the job. Attention to detail and being meticulous are more important. Software these days takes care of a lot of the mistakes done years ago on paper.
Bachelor of Science in Accounting
A Bachelor of Science (BS) in Accounting prepares students for entry-level professional positions in public, private, and government accounting. Some schools call this degree a Bachelor of Accountancy.
Double Major in ACCT/FIN
Whether your path leads you to accounting or to finance, the double major better prepares you to take advantage of a broad range of career opportunities. Examples of careers for Accountancy/Finance majors include: Certified Public Accountant. Financial Analyst.
Can you pursue both CPA and CFA? Technically, you can pursue them both together. However, there are both courses that help you specialise in two very different subjects. So it will be quite difficult to keep up with the syllabus of both courses simultaneously.
