What is the Difference Between Financial Planner and Accountant?

Who Is an Accountant?

Who Is a Financial Planner?

What Are the Key Differences Between Financial Planner and Accountant?

The following are the major differences between a financial planner and an accountant:

Aspects

Financial Planner

Accountant

Meaning

Financial planner aids customers to balance their current financial needs and achieve their long-term financial targets.

An accountant is a professional involved in accounting activities like preparing financial statement, account analysis, auditing, and so on.

Work Area

Financial planners work as advisors for various individual clients.

Accountants work only for the organisation they are associated with.

Education

Financial planners need to have a bachelor's degree in finance or economics. Also, they have to be a certified CA from the Institute of Chartered Accountants of India (ICAI).

Accountants should have an M.Com degree in accounting and finance, an MBA or MCA, and a Post Graduate Diploma in Computer Accounting and Auditing. Many accountants also hold CA certification.

Basis of Working

Financial planners formulate the plan on the basis of your income, assets and net-worth.

Accountants determine the financial status of an organisation by recording their transactions and analysing financial statements, profit and loss accounts, and balance sheets.

What Are the Roles and Responsibilities of an Accountant?

What Are the Roles and Responsibilities of a Financial Planner?

Which One To Choose from Accountant and Financial Planner?

FAQs About Accountant vs. Financial Planner

What are the steps to become a financial planner? up-arrow

Mentioned below are the steps by which you can become a successful financial planner:

  • Step 1: Gain a bachelor's degree in finance-related course
  • Step 2: Apply for internship jobs
  • Step 3: Complete registration with the Securities and Exchange Board of India (SEBI)
  • Step 4: Undergo additional certifications under ICAI, ICSI, IRDA, etc.
  • Step 5: Apply for your job

 

What is the average income of accountants in India? up-arrow

In India, the average salary of accountants ranges between ₹ 70,000 and ₹ 6.0 Lakhs, averaging around ₹ 2.5 Lakhs annually. However, this salary is only a rough estimation and may vary on the basis of several factors.

How long does it take to become an accountant? up-arrow

On average, accountant degrees are usually earned after five years of education and practice.