Accountant vs Actuary: Are you feeling uncertain about which career path to pursue? It’s no secret that selecting the right profession can be a daunting task.
For individuals with an affinity for math, two potential career options are accounting and actuary positions. Both of these professions are highly regarded, offering both challenges and rewards.
However, many individuals may mistakenly assume that accounting and actuary positions are interchangeable due to their association with finance. It’s important to note that there are key differences between these two professions that should be carefully considered before making a decision.
Accountant work
Accounting is essential for every business. Accountants’ main work is to manage companies’ financial records to check the financial data’s accuracy. Their primary responsibility is to ensure that financial transactions are accurate and compliant with accounting principles and regulations. Accountants prepare financial statements, tax returns, and audit reports. They also advise clients on financial planning, budgeting, and investment decisions.
Actuary work
Actuary mainly works for banks and insurance companies. Their major work is researching statistical data and giving financial ideas to reduce risks. They use mathematical models and statistical methods to analyze data and predict future events, such as accidents, natural disasters, and financial crises. They also advise clients on retirement planning, investment strategies, and risk management.
Accountant vs Actuary: Differences
Now that we have discussed the responsibilities of accountants and actuaries, let us compare the two professions based on various factors:
Accountant vs Actuary: Qualifications
To become an Accountant and Actuary, the minimum duration can be taken for almost three years to complete the exam after graduation.
Qualifications for Accountant
The Association of chartered certified accountants(ACCA) qualification helps candidates to become successful accountants. Many companies are looking for ACCA-qualified candidates. To join the ACCA course candidates need to pass 10+12 exams with 65% in English and Maths or accounts with a minimum of 50% in other subjects. ACCA-qualified candidates can get more job opportunities such as financial reporter, accounting advisor, statutory advisor, risk advisor, etc.
The CMA USA course allows learners to become an accountant. This course covers the concepts of finance and accounting. So that learners can select any option like finance or accounting. CM USA qualified candidates can get job opportunities such as Risk manager, Cost accountant, Financial manager and Management accountant analyst.
Apart from this, the CA course allows learners to become an accountant. CA’s can work in any organization and also can start their own company offering taxation, auditing and financial services. CA-qualified candidates can get job opportunities like Finance controller, Tax auditor and Treasury manager.
Generally, B.com courses, along with good knowledge and skills related to the accounting industry, allow learners to become an accountant. The Bachelor of Commerce in Accounting and Finance (BCom) is a three-year undergraduate course that covers the fundamentals of financial management and accounting. After completing this course, graduates can explore a wide range of employment opportunities in various financial sectors.
Candidates from any academic stream who have scored at least 50% in their 12th grade are eligible to register for this course. After completing the BCom degree, graduates can pursue careers as accountants, auditors, business analysts, finance officers, and other financial roles.
Qualification for Actuary
The Society of Actuaries(SOA) provides certification for professionals primarily employed in the field of health insurance, finance, life insurance and investments. This SOA certification offers six distinctive tracks. To become an Actuary, one should have passed the ACET(Actuarial common entrance test) examination. After graduation, it will take three years to complete the examination.
The Casualty Actuarial Society (CAS) certified professionals in the field of casualty and property risk management for both government entities and businesses. Candidates must have a college degree to pursue a career in Actuarial Science and become certified by CAS. Once certified, Actuarial Science professionals have a wide range of job opportunities, including roles such as financial advisor, actuarial science consultant, and business analyst.
Salary of Accountant and Actuary
Salary allows you to select which is the best career. The average salary of both professions will differ. The average salary an Accountant can earn in India is Rs. 2.5 lakh per annum. And the average salary for an Actuary can earn Rs. 10 lakhs per annum in India.
Accountant vs Actuary: Which one is better?
Both professions have better advantages. To become an accountant, one should be an expert in accounts and economics. But to become an Actuary, one should be an expert in statistics, economics, and mathematics. Overall, the decision depends upon the candidates’ interest only whether they need to become an accountant or actuary.
Accountant vs Actuary: Required skills
Skills are important for any profession that makes you become an expert. Accountants should have some specific skills such as a detailed understanding of tax regulations of state and central and federal tax laws, knowledge of Generally accepted accounting principles(GAAP), handling payroll, budgeting, internal business processes, and more. Both accountants and actuaries should have business management skills, analytics skills, problem-solving skills and detailed overview, software proficiency, etc.
Actuary should have specific skills in understanding concepts of risk management and how to implement it in difficult situations, depth-knowledge in finance, property or insurance, some computer languages like VBA or R, and more.
Both Accountant and Actuaries have their benefits and principles. Accountants work to manage regular financial activities and prepare financial statements that help to take any proper financial decisions in the future. Actuary work to avoid any financial risks happening in organizations. To become an expert professional as an accountant or actuary, one must pass a degree and specific exams. But to complete an actuary exam, time will be taken more while compared to accountant exams, and the average salary also will be high compared to an accountant.
Joining a certification course helps learners to acquire the best job in the accounting industry. Finprov is one of the best institutes that offers accounting and finance courses such as CBAT, PGBAT, Income tax, Practical accounting training, PGDIFA, DIA, GST, SAP FICO, Tally Prime, MS Excel, etc. and along with placement assistance. Our course modules were specially designed by industrial experts with experienced faculties that allow learners to improve their skills and knowledge in the accounting industry. Finprov will be a perfect choice if you want to join a certification course.
