Is accounting and finance a good degree in UK?

Is an Accounting and Finance degree worth it (UK)?

Is accounting and finance a good degree in UKIs accounting and finance a good degree in UK

There is no question that getting a degree in Accounting and Finance is one of the most well-liked options available to students in the UK. Others are drawn in because they have a real interest in such disciplines, while others are drawn in because of the highly remunerative roles that they may earn in those businesses.

Despite the fact that I did not get my degree in accounting but rather in international business and finance, I have experience working in corporate finance. Let's be honest here: I was also drawn to the world of finance and all that goes along with it, and this factor had a significant impact in determining which degree program I would enroll in.

So, here is the first piece of advice that I have for you: there is absolutely nothing wrong with admitting that you are interested in the high pay, foreign trips, bonuses, events, and many other advantages that you may earn working in the financial business. However, you will also need to have a genuine interest in the industry, even if it is just a passing one at first; you may then build on that passion as you continue your education.

In earlier postings, I spoke about other two options that are quite popular in the UK: getting a degree in marketing or business management. Both of these are very competitive fields. You may educate yourself about those by giving them a good read from beginning to end. Since we are now prepared, let's move on to the most important question: "Is it worthwhile to get a degree in Accounting and Finance in the UK?"


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Accounting and Financial Matters

If you have been reading my blog for any length of time, you are aware that I usually begin with a definition. In this instance, it goes without saying that we will have two distinct ones. This brings up another very crucial point: despite the fact that these disciplines are often studied together, they are quite distinct from one another and may lead to very different kinds of jobs, as we shall see in the next section of this essay.

Accounting is defined as the practice of documenting financial transactions that are relevant to a company. The process of accounting involves summarizing, analyzing, and reporting on these transactions to oversight organizations, regulatory bodies, and tax collecting institutions. (information sourced from Investopedia)

"Finance" is a phrase that refers to the administration of money and investments, as well as the generation of new money and the analysis of investments. The realm of finance may be roughly broken down into three distinct subfields: personal finance, corporate finance, and public finance. (information sourced from Investopedia)

The question is, therefore, what is the primary difference. In a broader sense, I prefer to think of it as follows: in accounting, you supply financial information and make sure that it is true; in finance, you analyze those statements and make judgments based on them.

Why are they often examined in conjunction with one another? In a previous essay titled "What to Study for Future Jobs in the UK," I made a passing reference to this topic. They both, in very few words, discuss the same fundamental ideas, yet they do it from uniquely distinct points of view.


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Why are they so significant?

These are critical components for every organization operating in the business sector, regardless of its size. In general, a firm that is able to depend on an effective accounting department is also able to rely on a decision making process that is properly informed; this may include anything from effectively allocating budget to saving money on taxes.

I feel obligated to point out that contracting out accounting tasks to third-party businesses is a fairly typical practice. This is true regardless of the size of the enterprises, whether they are small and medium-sized businesses or giant corporations. Keep in mind that this environment is incredibly difficult to navigate. It is involved in tens of thousands of transactions and a great number of regulatory frameworks.

On the other hand, the goal of finance is very different. Many people often ask me what it's like to work in finance. Permit me to inform you, that is a rather general remark to make! The business of finance encompasses a huge range of responsibilities, each of which falls under a separate category. For my part, I have experience working in the investment section of the corporate finance department.

No matter what aspect of finance you're interested in working in, you'll find that the industry as a whole is both stimulating and lucrative. At the corporate level, it is essential for a firm to acquire capital, invest effectively, please shareholders (or, as my management likes to say, keep them pleased), and, most importantly, maintain expanding its customer base.


Studies in both Accounting and Finance

The question is, what do you plan to study? To begin, before to enrolling in any accounting course, you should first investigate the credentials held by the school offering the course. Should you decide to pursue a career as a chartered accountant, you won't have to complete a number of required courses thanks to the fact that you have already completed relevant coursework during your time at university.

This is the path taken by the vast majority of accounting and finance students who ultimately want to work in the field of professional accounting. I did not major in accounting, but a lot of my friends did, and they all ended up getting jobs straight after graduation that sponsored them on the way to becoming chartered accountants (there are various statutes too).

In a similar vein, the financial sector is another business that is extensively regulated. Therefore, before to enrolling in any financial course, you should check to see what accreditations are offered by the school and how such accreditations might assist you in your future professional endeavors.

To give you an example, the current firm I work for paid for my additional training as a financial analyst, and since I had gained accreditations over the course of my degree, I was allowed to bypass several of the courses.


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Studies leading to a degree in accounting

So, what do you plan to study? To begin, you will need to get acquainted with the fundamental ideas and fundamental principles of accounting; how to understand the information included in financial statements and reports; and how the aforementioned factors influence the decision-making process of a business.

You will eventually learn how to properly make financial statements and reports; how to record transactions effectively; how to deal with asset depreciation; cash flows; regulations; debt; and a great lot more as you move further. Because it is such a technically advanced field, working in it will do wonders for your analytical abilities.


Finance degree studies

When studying finance, the first thing you will need to do is develop a solid understanding of the fundamental principles of finance; what the primary financial markets are and how they function; the various financial assets; how businesses efficiently raise finance and funds according to their needs; and what the sources of financial capitals are.

Again, as you make progress, you will learn ideas that are increasingly complicated. On the other hand, regarding the subject of finance, I anticipate that you will have access to a more extensive range of classes. It is quite possible that you will be required to choose your courses in accordance with the topics that most pique your interest; for example, corporate finance, investment portfolio, behavioral finance, and so on.

Regardless of this, you will learn the fundamentals, including how to evaluate investments (capital budgeting), stock market prices and returns; modern portfolio theory; market efficiency; fundamentals and pricing of financial futures and options; and the list goes on and on, there is a lot to take in!


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Employed individuals who has a degree in Accounting

After receiving their diplomas, these two fields go in very opposite directions from this point on. Graduates who are interested in pursuing a career in accounting often continue their education in order to get further certifications (such as ACCA, CIMA, or AAT); the majority of them do this while working in graduate positions and schemes.

This is essential for a number of reasons: first, the employer will often pay for any and all expenses associated with obtaining such credentials; second, many certifications (such as chartered status) need real work experience in addition to further study and tests. In essence, it's a win-win situation for everyone involved.

You may work in a wide number of industries and settings if you choose a career in accounting, which is another crucial point to bring up. It is not only limited to the process of documenting a company's transactions! Consulting, tax, forensic accounting, auditing, and other accounting-related specializations are all viable career options.

This, of course, also suggests that you have the potential to find employment in the private as well as the public sector. You have the option of working with either large international corporations or small accounting businesses when it comes to this.

It goes without saying that this varies depending on the region, industry, company size, and company type in the UK in 2021. Graduates who are just starting out in their careers might anticipate earning up to £30,000 annually. The possibility for an annual salary of up to £60,000 exists even for those who are still pursuing further credentials. The typical annual income for a chartered accountant is £84,500, and they get an additional average bonus of £17,300 (bringing their total compensation to nearly £100k!!). (info obtained from Prospects)


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Those in the Workforce Who Have a Degree in Finance

In my perspective, the field of finance offers a greater variety of professions to choose from. It is very dependent on the things that you are interested in. In general, the majority of graduates are interested in working in investment banking, financial trading, corporate finance, or as financial analysts.

On the other hand, there is no limit to the possible paths. The financial services business is a vast sector that encompasses a wide range of subsectors such as insurance brokerage, pension consultant, personal financial guidance, and many more. When it comes to the field of accounting, this opens up the opportunity for you to work in the public or private sector, for small or big international corporations, or even for a government agency.

A finance graduate entering the job market in the UK in 2021 may anticipate a salary of up to £30,000, comparable to that of an accounting graduate. However, earnings change based on which industries or job functions you choose to pursue a career in, as we saw above, there are many different options to choose from. It is likely unnecessary for me to inform you that those working in finance have the potential to earn very high wages indeed.

Do you still find yourself debating whether or not getting a degree in accounting and finance is a good investment? In this previous article, I discussed the "best topics to study for future careers in the UK." If you are still unclear about what it is that you would want to major in, you may find it helpful to go through this post first.


The Field of Accounting and Finance in the United Kingdom

As I've said on several occasions, the sector of providing financial services in the United Kingdom is one of the most developed in the world. All of the main multinational corporations have grown their activities in this region, and they are continuing to do so, which has attracted significant capital investments not only from local but also from international investors.

This, together with the many small and medium-sized businesses and start-ups (especially in the financial technology sector), has resulted in the formation of a network that is both complicated and well-functioning. It's a virtuous cycle: several businesspeople choose to put their money into the United Kingdom because of its extensive and successful network.

As a consequence of this, the sector of financial services in many nations looks to the United Kingdom as a model to emulate. It should come as no surprise that London is the principal financial center of the United Kingdom, and many people regard the city to be only second to New York in importance. Only in 2019, the financial sector was responsible for contributing £132 billion to the GDP of the UK. (information obtained from the Parliament of the UK)


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Major employers

As was just said, a degree in accounting and finance may open doors to job opportunities in a wide variety of fields. It is entirely up to you whether you choose to pursue a career in the public sector, the commercial sector, or the not-for-profit sector.

However, we can provide a list of businesses that are better suited for such a degree and that have graduate programs; these are the types of companies that the vast majority of recent graduates want to begin their careers with because of their excellent reputations, ample opportunities for career advancement, and high salaries:

Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG are together referred to as the "big four" accounting companies.

HSBC, Barclays, Lloyds Banking Group, Santander, NatWest Group, and Nationwide Building Society are examples of retail banks and building societies.

Investment banking companies include J.P. Morgan, Deutsche Bank, Barclays Investment Bank, Morgan Stanley, and Citigroup. The Goldman Sachs Group is also included.

Aviva, Allianz, Standard Life, Admiral Group, AXA, American International Group, and RSA Insurance Group are examples of well-known insurance companies.

They are always looking for talent and compete fiercely to ensure that they get it; therefore, they offer very competitive salaries and a variety of company's benefits, ranging from financial bonuses to events. All of the aforementioned companies offer graduate schemes and jobs in the United Kingdom.

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