What Are the Differences Between Financial Analysts And Accountants?

What Does a Financial Analyst Do?

What Does an Accountant Do?

Difference Between Financial Analyst and Accountant

Parameters

Financial Analyst

Accountant

Area of Focus

They primarily focus on past transactions and based on that tries to improve the finances of the company.

They focus on examining various data and reviewing financial statements.

Responsibility for the work

Financial analysts help in predicting the future performance and pursuits of the business. It examines the overall picture of the business by establishing future profit plans and exploring various investment opportunities.

Accountants focus more on daily operations and are more concerned with the preparation, audit, and accuracy of financial statements.

Skills Required

They should have analytical thinking, mathematical skills, and strong research, leadership, and decision-making skills.

Apart from mathematical skills and analytical thinking, they should be organised, detail-oriented, adaptable, and great communicators.

Certification Course

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.

Salary

Usually, a financial analyst makes more money than an accountant. The average salary for a financial analyst is Rs. 4 lakhs per annum.

The average salary for an accountant is Rs. 2.75 lakhs per annum.

Workplace

They usually work for large corporations and firms in cubicle-like settings or probably their own offices.

They work for a variety of businesses, starting from large corporations to law firms and individuals in office environments.

Tax Preparation

They typically don’t participate in tax preparation but may examine tax forms as a part of their investment or business analysis.

Their primary work is tax documentation and preparation. They know how to find out all applicable tax benefits.

Which One Is Better: Financial Analyst or Accountant?

FAQs About Financial Analyst and Accountants

Does a financial analyst need accounting? up-arrow

Most financial analysts have a bachelor’s or master’s degree in a business-related field. One of their most common specializations is finance. Though there are some analysts that recommend starting with a degree in accounting, as it lays down a stronger foundation for analysing financial statements.

Do accountants make more money than financial analysts? up-arrow

No, financial analysts make more money than accountants and they have typically higher salary status.

What is the difference between an accounting analyst and a financial analyst? up-arrow

Accounting analysts usually analyse and report the financial data of a company on a day-to-day basis, while a financial analyst is responsible for reviewing specific financial decisions.