Career Comparison for
Accountants and Financial Analysts

Prepared for
Sara Ray

Prepared by

Career Consultant

June 16, 2013

LETTER OF TRANSMITTAL

Sara Ray
123 Brookside Dr.
Holbrook, NJ 75486-1256

June 21, 2013

Dear Sara,

Here is the report you requested on June 1st for a comparison between of a career as an accountant and a financial analyst.

Based off our conversation, we took your interests and previous work experience into consideration as we compared specific criteria between these two careers. While working for your previous employer as a junior accountant, you show your ability for detail and organization. An accountant must possess these skills as well as the ability to work independently. I also gathered from our conversation that you are not one to handle a tremendous amount of pressure well. As a financial analyst, this is a skill that is required. You could be faced with many deadlines that could be very stressful.

Your education course of study was also included to compare to the education requirements of each career and even though there are many similarities between the two, there are many differences. For example, both careers require good written and oral comprehension but an accountant needs to have excellent mathematic skills and be able to choose the right formula to solve a problem. This skill is not as important as a financial analyst as is the ability to develop solutions to complex problems that need to be solved. Your college transcript shows your focus in accounting and mathematics which falls under an accountant’s criteria. You could use this degree as a financial analyst however you would need to take some more finance or risk management.

We feel that with all these facts considered, a career as an accountant is the best choice for you. Thank you for this opportunity. Please review the enclosed report and let me know if you have any questions.

Thank you,

TABLE OF CONTENTS PAGE
Letter of Transmittal..……………………………………………………………………..ii
Synopsis ..........…………………………………………………………………………….iv
Introduction ………………………………………………………………………………..1 Scope and Limitations………………………………………………………………………………………………. Sources and Methods………………………………………………………………………………………………. Organization of the Report………………………………………………………………………………………..
Career as an Accountant………………………………………………………………… Occupation Skills and Tasks………………………………………………………………………………………. Salary……………………………………………………………………………………………………………………….. Education Requirements…………………………………………………………………………………………. Work Environment…………………………………………………………………………………………………… Advancement Opportunities…………………………………………………………………………………….
Career as a Financial Analyst…………………………………………………………. Occupation and Skills…………………………………………………………………………………………….. Salary…………………………………………………………………………………………………………………….. Education Requirements……………………………………………………………………………………….. Work Environment…………………………………………………………………………………………………. Advancement Opportunities…………………………………………………………………………………..
Conclusions and Recommendations…………………………………………………
References…………………………………………………………………………………
Appendices………………………………………………………………………………… Appendix A: Client Interview…………………………………………………………………………………… Appendix B: Memo on the 3-step process………………………………………………………………

SYNOPSIS This report is a comparison between a career as an accountant and a career as a financial analyst. While there are many similarities between the two careers, such as a fast growing career in today’s world, they are clearly different. We compared both careers using the five same criteria, occupation skills and tasks, salary, education, work environment and advancement opportunities. An accountant deals with real numbers and prepares financial reports based off those figures. They concentrate on preparing budgets and taxes for a company. A financial analyst studies investments that have been made and evaluate the trends of them. They are using more of a calculated or projected number to make an educated guess of what the best choice is for the future. Strong math skills are needed for both careers however an accountant’s education focus is more on accounting skills, marketing, business law and business administration. A financial analyst degree study focuses more on risk management and corporate finance. We used this information with our interview with you to recommend the field of accounting. We feel a career as an accountant is the better fit for you because of your ability to be detail orientated as well as work independently. These are important factors for an accountant.

Career Comparison for Accountants and Financial Analysts

INTRODUCTION
Finding the right careers in finance can be challenging because there are many options out there for individuals with many different skills and at various education levels. For your two possible career choices, Sara, a comparison between a career as an Accountant and a career as a Financial Analyst was performed. Even though there are some similarities, these two careers are very different in the financial world. We recommend a career as an accountant as a better choice over a career as a financial analyst.
Scope and Limitations
The purpose of this report is to compare the pros and cons between the career as an accountant and the career as a financial analyst and evaluate which one is the better choice for you. For each career, we analyzed the duties and skills required the education requirements, the type of work environment to expect, the salary ranges and the advancement opportunities. While people in both careers can specialize in a specific area, this report evaluates the careers on broad level with no set area of expertise.
Sources and Methods
To provide the best information for your career choices, we consulted several different sources. We reviewed important data from the Bureau of Labor Statistics, Career One Stop and Salary.com for expected salaries of both accountants and financial analysts. I also used an article from Business Administration called “The Difference between Finance and Accounting Degrees” to conduct this research. A source from Wet Feet was consulted for more detail on the Accountant’s career and an article from the International Journal of Management was reviewed for data relevant to the career of a Financial Analyst.
Report Organization
The report is broken down by both career choices. First, we cover the accountant then the financial analyst. We begin with the job duties and skills required. Then, we explore the salary ranges; and then we provide the education requirements. Next, we discuss the work environment and advancement opportunities for each field. Finally, we offer our conclusion and the recommendation of a career as an Accountant.

CAREER AS AN ACCOUNTANT

Occupation Skills and Tasks
An accountant is a person who performs accounting tasks such as preparing and maintaining financial records, taxes and financial reports for a company. An important role of an accountant is to ensure the company’s financial records are accurate and comply with the laws and regulations. A career as an accountant requires many skills and requirements to be successful. First, an accountant must be able to communicate both written and orally. Strong mathematical skills are a must since accountants always work with real numbers. They must be able to be an involved listener and have the ability to come up with solutions or other approaches to problems. These skills are important for an accountant’s daily task such as analyzing business operation costs to calculate revenues for the company. As an accountant, you advise management on projected costs based off past data as well as maintain and develop future budgets. You will also prepare the company’s tax returns and ensure payment is reported properly.
Salary
Salaries in any career vary based on your location but since you are currently located in NJ, we used that geographic area. According to Career One Stop, the average salary of an accountant in your area makes an hourly rate of $35.21 and a yearly salary of $73,200. That is slightly more than the national average of $30.55 hourly and $63,500 yearly.
Education Requirements
Most accounting positions require at least a Bachelor’s Degree in accounting or in Business Administration with a minor in Accounting. Coursework for an Accounting degree will require higher math courses as well as Business Law, Marketing, Statistics and Accounting Ethics to name a few. Some companies look for individuals with a Masters degree in accounting or a certain amount of experience but it depends on the company and their set of requirements.
Work Environment
Accountants work full time of 40 hours per week and can require over time in specific times of the year especially during tax season. Most work in an office environment within the company which is helpful for questions and problems that arise. Depending on the company and the type of accounting you could specialize in, there are accountants that work from home.
Advancement Opportunities
We found in the U.S. Bureau of Labor Statistics that “employment of accountants is expected to grow 16 percent from 2010 to 2020”. This specific career will be expected to increase because of the financial status of the economy and the change in many financial regulations. This should open many opportunities for individuals just coming out of college and looking for an accounting position.

CAREER AS A FINANCIAL ANAYLST

Occupation Skills and Tasks
A financial analyst is someone that offers advice and guidance to companies on investment decisions. In this career, you would concentrate on the trends of various investments and look at the historical data to predict the best options for your company. Like an. accountant, a financial analyst must have strong communication skills both written and verbally. You must also be able to identify and solve complex problems. The tasks associated with a financial analyst are to prepare plan of action for future investments and to present this data with the financial trends for the company, investment staff or public if required. A financial analyst should have good use of software programs to compile all the needed data. An article posted by Julian Hooks states, “financial analysts deal more with ephemeral or uncertain figures, including projected returns on investments or stock prices.” This career forecasts future profits.
Salary
Using the same location information as we used for the accountant, the average salary of a financial analyst is $39.97 hourly and $83,100 yearly. The national average for this position is $37 per hour or a yearly salary of $77,000. Like the accountant, NJ has a higher salary average.
Education Requirements
A financial analyst position requires a Bachelor’s degree in a related financial field, Accounting, Business Administration Economics or Finance. Many of the math requirements needed as an accountant are also required for a financial analyst but this career focuses is more on finance, risk management and portfolio management. Some companies also require a Masters degree in Finance.
Work Environment
Many financial analysts work mainly in an office setting. They often work more than 40 hours per week especially when faced with specific deadlines. Since most of their work day is filled with meetings and presentations, a financial analyst could spend much time preparing research after hours. Some travel could be required to visit potential investors or other companies.
Advancement Opportunities
According to the U.S. Bureau of Labor Statistics, the career of a financial analyst is expected to grow by 23 percent by 2020. This is a much faster growth rate than other occupations because there is a growing range of financial products.

CONCLUSIONS AND RECOMMENDATIONS

Finding the best fit for your career can be overwhelming. Accountants are known to work with real numbers while financial analysts anticipate future numbers. Our team looked at the two careers you referenced and compared them on equal levels. We compared the skills and tasks required for the job, the salary range, education requirements, work environment as well as looked towards the future to see what advancement opportunities are available. Some factors we used to make our recommendations are listed below. 1. Your strong communication skills would be useful in both careers but your ability to be so detail orientated is a plus for an accountant. 2. You also have proven to be able to work independently in your past job experiences. Your position as a junior accountant has given you certain tasks in which you have successfully accomplished. 3. While you could also apply your degree in Accounting towards a position as a financial analyst, some jobs may prefer a course study that was geared more to risk management and finance studies. You would need to consider taking additional classes where as the degree in accounting completely covers all aspects of an accounting career. 4. A career as a financial analyst can be more stressful and are often required to make decisions very quickly.
A career as both accountant and a financial analyst shows strong growth over the future however, the field of accounting offers more options. Based off the findings in this report, we feel a career in Accounting would be the best fit for you.

REFERENCES

Bureau of Labor Statistics’ Occupational Outlook Handbook, Retrieved from http://www.bls.gov/ooh/

Hooks, Julian (2013, February). The Difference between Finance and Accounting Degrees. Retrieved from www.businessadministrationinformation.com/ degrees/the-difference-between-finance-and-accounting-degrees

Pinho, C., Madaleno, M., & Santos, H. (2013). The Usefulness of Financial Analysts' Reports: A Content Analysis. International Journal Of Management, 31(2), 631-648.
Salary.com (2013). Retrieved from http://www.salary.com/category/salary/

US Department of Labor (2013).Retrieved from http://www.careeronestop.org/

WetFeet (2003, August). WetFeet Insider Guide to Industries and Careers for Undergrads. San Francisco, CA: WetFeet, Incorporated

APPENDICES

Appendix A: Client Interview
On June 1, 2013, my Career consulting team, which consisted of Tim, Mary and Karen and I met with Sara Ray to discuss two potential career choices she has been considering. We met at our conference room in our office at 10am which lasted about an hour. During our meeting, we found out that Sara has just graduated from DeVry University with a Bachelors degree in Accounting. While completing her degree, Sara worked for Bederson & Company as a junior accountant. She provided her written reviews from the Company which showed exceptional work. Sara was able to take on additional tasks as her time progressed with little instruction. During the meeting, Sara expressed her interest in continuing her career full time as an accountant or to pursue a career as a financial analyst. She felt that while she enjoyed working as a junior accountant, she thought a career as a financial analyst had a higher starting salary. She did express her love for independent work and did not like high pressure positions. The main purpose of the meeting was to assist Sara in her career decision. We agreed to accept the task of preparing this report to show the comparison between the two careers and make a recommendation of which one seemed to be a better fit for Sara. We agreed to breakdown the data based on the five areas which are skills and tasks, salary, education, work environment and advancement opportunities. Tim and Mary each took two areas to research and Karen took one. I compiled all the data and prepared the final report. Based off Sara’s work experience, work experience and personality in general, we felt the career in accounting was the best choice.

Appendix B: Memo on the 3-step process