There’s no doubt that those with a finance degree have plenty of options when it comes to careers. There are many different work environments that are in need of finance professionals, from the private sector to government agencies to banking institutions and everything in between. The roles they fill are varied, including the management and analysis of things like investments, financial planning, risk assessment, credit, loans, and the list goes on.
Accounting vs. Finance: What’s the Difference?
Although we hear about these two terms often in the same sentence, they aren’t interchangeable. There is a big difference. According to Johnson & Wales professor and online instructor Randy Kemnitz who specializes in personal finance, the two fields cover vastly different areas. “On a personal level, accounting tends to be focused on filing tax returns and the like,” he explained. “Personal financial planning is tax planning and retirement, estate, risk and investment planning. Personal financial planning is a much broader discipline, accounting is narrow but deep.”
Accounting is generally more geared towards financial records, reports, and the documentation of financial transactions. At times, the term “accounting” is used to describe bookkeeping activities. On the other hand, finance is focused on managing money for an individual or businesses. It’s less about reporting and documentation activities.
Education Requirements for Careers in Finance
Even for entry-level finance jobs, a bachelor’s degree in finance is often a must. However, to advance your finance career, a master’s degree in finance or other certifications, such as a CPA, CFA, or CFP, may be required.
12 Potential Careers with a Finance Degree
Speaking of CFPs and other finance fields, there is a wealth of career opportunities and paths for finance majors to explore. These opportunities are vast and provide finance undergraduates with plenty of options once they graduate. Entry-level positions are plentiful in all of these fields. Below, we will go over some of the most common finance career options.
1. Financial Planner
Do you like to help people? You can make a huge impact on someone’s life as a Financial Planner. A Financial Planner meets with their clients to help guide them on what to do to achieve their financial goals for the future. They are responsible for mapping out an actual plan on how to achieve future financial goals. It’s their role to monitor and adjust the financial plan as necessary. You will find them often making recommendations and providing their clients with choices along the way. They often strategize on goals and assist with investment choices. As a Financial Planner, they stay updated on market trends and the latest industry information. A good Financial Planner will give you ongoing advice and act as a trusted advisor for years to come. Fee structures are varied depending on the company.
Professionals in this field usually need to earn the Certified Financial Planner (CFP) certification.
2. Financial Analyst
A career as a Financial Analyst can have great earning potential and benefits. In a nutshell, Financial Analysts will predict outcomes of business decisions for organizations. They do this by taking financial data and creating models that offer a glimpse of what the future may hold. This role within an organization is not only critical to the business but it’s also highly data-driven. They often recommend investment options to their clients and write financial reports explaining their analysis. This career is one that is in demand and quite competitive. Finance graduates, those with degrees in the field, are often the perfect candidates for the job.
3. Investment Banking
Investment banking has many different facets and is not a single position. There are different specialties within the umbrella of investment banks. In general, Investment Bankers are responsible for managing money on behalf of a client or employer. Their goal is to maximize profit as a result of effective management. They use a variety of investment options such as bonds and the stock market. Investment Bankers have a daily life of reviewing financial data and integrating financial modeling to predict outcomes. Managing risk is a primary goal of Investment Bankers in any setting whether it’s a private equity firm, corporation, or other organization. There are a lot of opportunities despite its competitive landscape. It’s worth exploring this lucrative career as an Investment Banker.
Pursuing this career typically requires earning a Master of Business Administration (MBA) in Finance or general master’s degree in finance.
4. Commercial Banking
Are you inquisitive and analytical with strong communication and math skills? Working as a Commercial Banker might be a great choice for you. A commercial banking professional can provide financial advice such as offering different credit products as options to individuals and businesses. Examples could include fixed income products, lines of credit, and cash management services. Relationship building with corporate clients is a large part of this career choice. Establishing trust is important to managing corporate banking accounts, investment option recommendations, and executing loans.
5. Public Accounting
Public Accountants are professionals who provide financial services in an array of work environments. Clients can range from businesses to individuals to government institutions. Public Accountants can provide tax services, accounting, auditing, financial planning services, or business consulting.
A career in public accounting generally requires becoming a Certified Public Accountant (CPA).
6. Credit Analyst
A Credit Analyst specializes in credit data and will assess the risk of lending money to clients. They look at loan applications, credit history, financial statements and more to determine the risk. They work with organizations to verify data as necessary. Also, they need to be able to work with clients to verify their history.
7. Actuary
Mathematics and statistics need to be top strengths for an Actuary. Actuaries are definitely needed and in high demand. They measure and manage risk with their thorough understanding and knowledge of key areas of finance. Actuaries assist business leaders in making crucial decisions about their organizations that will certainly affect their financial future. This role usually necessitates certifications from professional bodies like the Society of Actuaries (SOA) or Casualty Actuarial Society (CAS).
8. Loan Officer
A career as a Loan Officer can prove to be quite lucrative. It’s also rewarding in the sense that you are helping others with possibly the biggest purchase in their life. Relationship building and customer service skills rank high for this job. You will be working with loan applicants and helping them throughout the intricate and sometimes stressful process. Loan Officers will likely be involved in paperwork but their interaction with clients proves to be super important.
9. Budget Analyst
Budget analysts play a vital role in helping organizations manage their finances. These professionals help maintain organizational financial stability and achieve strategic fiscal goals by:
- Assessing budget proposals
- Analyzing financial data
- Monitoring spending patterns
- Recommending ways to allocate funds efficiently
10. Corporate Treasurer
Corporate treasurers oversee the financial health and capital management of organizations. Candidates often need a finance MBA or a master’s in finance to qualify. These treasurers:
- Manage liquidity
- Monitor investments
- Control financial risk
- Handle cash flow strategies
- Maintain strong relationships with banks and other financial institutions to ensure continuous operational funding and growth
11. Financial Consultant
Financial consultants bring expert data analysis skills and deliver recommendations to businesses and individuals regarding investment strategies, financial management, and long-term financial planning. They assess clients’ financial status, identify opportunities for growth, and develop customized financial solutions designed to achieve specific financial goals and improve overall financial performance.
Professionals typically must obtain credentials such as a Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA).
12. Financial Advisor
Financial advisors work closely with individuals and families to guide them toward achieving personal financial goals. They build lasting relationships with clients, ensuring their financial strategies evolve to meet changing life circumstances and market conditions. Advisors offer advice on:
- Retirement planning
- Investment choices
- Insurance options
- Tax planning
- Wealth management
To practice as a financial advisor, one must pass relevant licensing exams administered by FINRA.
Ready for a Career in Finance?
Get started with your bachelor’s degree in finance or your master’s degree in finance with JWU Online? For more information, complete the Request Info form, call 855-JWU-1881, or email [email protected].