Accounting vs Finance
So, you want to know if finance is it for you? Here is my take for you to decide if you are pursuing the right major:
-Did you score a B+ or better on all math and bus core subjects, i.e. stats, econ, investments, fin. instruments, corp finance, cap markets, calc I (up to differential equations)?
-Do you have basic accounting knowledge (i.e. you need to be fluent in extrapolating numbers from cash flow, income, and balance sheet statements).
-Can you create a macro with medium level complexity in Excel? In addition, have you learned a computer programming language, if not, are you willing to?
-Do you like the notion of quantitatively deriving numerical values from formulas/calculations all day, and supporting your derivation qualitatively with an above average (if not world-class) writing ability?
-Do you have above average presentation/verbal skills, i.e. do you feel comfortable getting in front of ppl and presenting your work?
-Do you think your interpersonal skills are second to none? Are you very opinionated? Can you quickly support your statements with actual facts or spot-on examples? An outgoing personality adds a lot of value, believe it or not.
-Do you have passion for the financial markets- fixed income/capital markets, equities (public/private), f/x, derivatives, futures, etc.?
-And lastly do you think Gordon Gekko is your hero :) ?
For accountants, it's a whole different ball game. They MUST abide by strict rules. Sure, they have a lot of leeway, but the bucks stop where GAAP begins. But accountants play a very important role in keeping corporate books clean- finance ppl depend on these numbers to make vital decisions.
In finance- it's all about how you support your numbers, whether they be simple facts or persuation. Timing is obviously critical, as window of opportunity ceases to exist sooner than later.
Remember that accountants do not need to know finance to do their job- in contast, finance person must know limited accounting to perform their job.
Does this help? :)
