The Difference Between Accountants and Financial Managers (2024)

Both accountants and financial managers have a similar education in business or accounting and have a role in the company's finances. These occupations differ, however, in that financial managers already possess accounting and finance experience and have more of an impact on long-term decision making and leadership, while accountants can find work new to the field and focus more on day-to-day transactions and reporting. Both occupations have a favorable job outlook with positions available in many industries; however, financial managers tend to have the most generous earnings regardless of how much experience they have.

Job Description

Shared duties for accountants and financial managers include creating financial reports, offering advice to improve the company's finances and performing financial analysis. One major difference is a financial manager's role is more strategic and focuses on helping the company make decisions that cut costs and improve the company's value while providing leadership over other financial employees. In contrast, an accountant's work focuses on computing and recording day-to-day financial calculations, ensuring compliance with accounting regulations, preparing taxes and checking financial records for errors. Both occupations require someone who can think analytically and mathematically, stay organized, communicate clearly and have an attention to detail.

Education Requirements

Educational requirements for accountants and financial managers are similar with a bachelor's degree in accounting being acceptable and a relevant master's degree preferred. A few differences are that financial managers tend to have a broader business skill set, possess several years of experience as a financial or accounting professional, and may have a finance or more general business degree. Professional certification options exist for both finance occupations and usually require several years of work experience along with a degree. These include the popular Certified Public Accountant credential for both occupations and the Chartered Financial Analyst credential for financial managers.

According to the Bureau of Labor Statistics' May 2017 wage data, there is a large difference between a finance manager's and an accountant's salary. The reported median wages were $69,350 for accountants and a much higher $125,080 for financial managers, indicating half of each these professionals earned more than those figures while half earned less. The bottom 10 percent of accountants made under $43,020 compared to $66,480 for the bottom 10 percent of financial managers. In contrast, the top 10 percent of accountants exceeded $122,220 compared to $208,000 a year for financial managers.

Industry

Common industries accountants and financial managers share include finance and insurance, government and professional services. Around a quarter of accountants work in accounting and bookkeeping services, while close to one-third of financial managers work in finance and insurance. Since they can run their own businesses and independently offer services to clients, accountants are also more likely to be self-employed than financial managers who mostly work in traditional offices alongside other managers and departmental employees. Overtime is common for both these full-time positions, although financial managers are somewhat more likely to work long hours.

Years of Experience

Accountants and financial managers both get pay increases as they become more experienced. However, financial managers tend to start out with much higher salaries and see more significant pay increases over a 20-year period than accountants do. As of May 2018, PayScale.com listed the average earnings for accountants and financial managers based on years in the occupation:

Job Growth Trend

The BLS reports that both accountants and financial managers are expected to have good job prospects and fast job growth between 2016 and 2026. However, financial managers have the advantage of a faster 19 percent job growth compared to 10 percent for accountants. Demand for both of these occupations depends on the economy and its impact on businesses. In general, aspiring financial managers encounter a more competitive job market than new accountants do, and graduate education and professional certification provide an advantage.

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