What Are the Differences Between Finance And Consulting?

What Do You Mean by Finance?

What Do You Mean by Consulting?

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.




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.


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.

This list of differences between finance and consulting will definitely help you in making a good career choice.

Finance Vs Consulting - Which One Is Better?

FAQs on Differences Between Finance Vs. Consulting

Does consulting come under finance?

Yes, consulting comes under finance. However, it usually refers to generalists who possess more or less average knowledge about various fields. For a specific situation, they could provide consulting to clients in every field of business administration, and these are not restricted to finances at all.

What are some main categories of consulting?

The consulting role usually fits into one of the five main categories: financial consulting, strategy consulting, operations consulting, human resources consulting, and information technology 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.