Financial Analyst vs. Accountant

If you're considering accounting and finance analyst roles, it helps to understand the key differences between the positions. People often confuse the two positions because both professionals work with financial records and data on a daily basis.

While financial analysts and accountants have an eye for detail and a focus on financial performance, the similarities end there. Financial analysts typically take a future-oriented approach, while accountants interpret current and historical financial records.

This article explores the differences between financial analyst and accountant positions, including roles, responsibilities, qualifications, typical work environments and potential career paths.    

Is a financial analyst an accountant? Not at all. The daily responsibilities of a finance analyst vs. accountant vary significantly.

Financial analysts review economic trends, financial data and market trends to make predictions or recommendations in different areas, such as investments or financial planning. They usually work with vast amounts of data from multiple sources, performing extensive research before making formal recommendations.¹

Typically, their research includes assessing historical financial data, current events and other information that could affect the recommendations they present to company leadership. They may use financial modeling to assist in these recommendations.²

Many financial analysts may work in wealth management or financial planning roles. They may work in-house for a single company or consult for individual clients. Some work for companies analyzing other investments besides securities, such as real estate or budgetary spending.¹

Accountants oversee the inflows and outflows of financial transactions.³ They maintain accurate financial records, evaluate financial and data risks, and ensure that taxes are paid properly and on schedule. Their responsibilities are usually cyclical, requiring them to close the prior month's books on a specific schedule. At the end of each quarter and fiscal year, accountants finalize the books for that period and prepare the company's financial statements.⁴

Accountants may work for public or private companies. In company roles, accountants accurately record financial transactions each day.

Auditors and tax accountants must adhere to specific deadlines. For instance, auditors may need to review a company's financial statements and processes before any financial results can be reported publicly.⁴ Tax accountants file company or individual tax returns according to governmental deadlines.⁵

Accountants and financial analysts hold at least a bachelor's degree. They can, however, accelerate their careers by earning a graduate degree or certification.

Employers typically require financial analysts to hold a bachelor's degree in a business major such as finance, accounting, economics, or statistics. While a master's degree isn't always required, it can help financial analysts heighten their careers and earning potential.¹

Financial analysts may also earn various licenses from the Financial Industry Regulatory Authority (FINRA), which oversees the securities industry. Most FINRA exams require employer sponsorship. After gaining on-the-job experience, some financial analysts work toward the Chartered Financial Analyst (CFA), certifying their investment analysis competence.^1,6

Accountants typically start their career by earning a bachelor's degree in accounting or business administration. This degree teaches fundamental accounting skills, which prepare students for entry-level accounting positions. However, to advance to supervisory or managerial roles, accountants may wish to pursue a master's degree.⁷

Earning a master's degree opens the door to becoming a Certified Public Accountant (CPA) since most states require candidates to have at least 150 credit hours of education for certification. Accountants must pass the Uniform CPA Examination and demonstrate work experience to become a CPA. Some CPAs may find secure roles with greater responsibilities while others may choose to go into private practice.⁷

While there are a lot of key differences between the two roles, the work environments of financial analysts and accountants are generally similar.

Financial analysts are typically office-based. They may work for public or private companies in various industries, including banking and wealth management. Some work for manufacturing, retail, or research-oriented organizations.¹

Financial analysts in customer-facing roles typically wear business formal or business casual attire. They may, however, adhere to a more casual dress code, particularly if they work remotely or for tech companies.

While financial analysts usually follow an eight-to-five or nine-to-five schedule Monday through Friday, it's not unusual for them to work longer hours when under deadline. Most financial analysts work in teams, while some may hold supervisory roles.

While some may work from home, most accountants work in office settings for public or private companies. Since all organizations need accountants, you can find them in most industries, including manufacturing, tech, retail and transportation.⁴ In the office, accountants often work as part of a team, collaborating with other accounting employees as well as employees in other departments. Accounting teams have a variety of roles, from entry- to senior-level positions, and the entire team reports to a chief accounting officer.

Most accountants follow a business casual dress code. However, more formal business attire may be required in client-facing positions, such as auditing or tax advisory. Accountants typically follow a traditional 40-hour schedule, working Monday through Friday, but during reporting periods, they may work extended hours in evenings and on weekends.

As financial analysts and accountants gain experience, they can advance in their careers.

Financial analysts may qualify for senior financial analyst positions with just a few years of experience. As they accumulate additional experience and education, they may pursue leadership roles such as financial planning and analysis (FP&A) managers or directors. They could also pursue subspecialties to pursue a job like financial risk manager or becoming a financial regulations advisor. The top position in the financial analyst career path is chief financial officer (CFO), so these positions are highly competitive. Not all financial analysts can earn a CFO title; however, earning a master's degree and CFA designation could improve your chances.⁸

Accountants may pursue several different career paths, including in management accounting, forensic accounting, auditing and taxation. Top-performing accountants may earn partner status at their accounting or auditing firms, giving them greater oversight regarding firm activities, a higher salary and other financial benefits.⁷

In addition, accountants working for public or private companies may take on supervisory or managerial roles. The top accounting position at a public or private company is usually a financial controller. However, some companies may select accountants for their CFO positions.⁷

Financial analysts or accountants may receive a higher-than-average salary and can expect many viable job opportunities in the future.

Financial analysts earn an average of $99,890 annually. The job outlook for financial analysts is positive, with a projected growth of 8% through 2032.⁹

On average, accountants earn $79,880 annually. The U.S. Bureau of Labor Statistics estimates the need for accountants will grow by 4% through 2032.¹⁰

Financial analysts and accountants use various software programs to perform their tasks.

Most financial analysts use Microsoft Excel, which contains numerous features to assist financial modeling and data analysis. Tableau is another popular software tool for data visualization and dashboard creation. Financial analysts who perform investment research may also rely on real-time data from Bloomberg Terminal or reports from Morningstar Direct.¹¹

Accountants rely on financial software, like QuickBooks or NetSuite, to record financial transactions and monitor account balances.¹² Tax accountants may use specialty software, such as Lacerte Tax or CCH Axcess Tax, to prepare tax returns.¹³

Santa Clara University's top-ranked Online MS in Finance and Analytics offers a variety of classes in corporate finance, investments, data analytics and financial forecasting. Through our program, you'll learn everything you need to take the next step in your career as a knowledgeable accountant or financial analyst. To explore the benefits of our program and learn more about our expert faculty, contact an admissions outreach advisor today.