Before choosing between finance and accounting programs in grad school, business professionals should make sure they understand how a Master of Finance differs from a Master of Accounting. While both of these degrees focus on the key financial aspects of running a business, their focus is often on completely different sides of the transaction. Financial professionals are more concerned with the “how” and “why” of making an important financial transactions, while an accounting focuses their time and energy on recording those transactions, accounting for their impact on the company’s bottom line, and using those numbers to help prepare quarterly statements for investors and other company stakeholders. The degrees reflect these different responsibilities.
Master of Finance: The Budgetary and Investment Side of Business
A Master of Finance is designed as an in-depth program for those business professionals who already work in a financial firm or within the finance department of a major corporation. The degree focuses on a few key areas, the most important of which is corporate financial structure and planning. Students will learn how to create a plan for company investment, and they’ll learn about the economics of stock splits, dividends, public offerings, and raising capital and short-term debt. Students will also learn in-depth ethical rules governing corporate finance, financial advising, and financial analysis.
Concentrations within this degree program allow students to specialize in financial analysis, financial advising and planning, or corporate finance. Each concentration will consist of between 6 and 12 credits, with a focus on making strategic financial decisions that grow wealth, leverage the power of stock market investments, and follow ethical guidelines. Master of Finance students will typically present a comprehensive final paper on a relevant topic of their choice prior to graduation.
Master of Accounting Programs Have a Different Focus
A Master of Accounting program is targeted primarily to students who majored in accounting at the undergraduate level and later obtained an accounting position at a company, public agency, or tax firm. The degree continues the undergraduate coursework where it left off, often with a minimum of 30 additional hours required before students are permitted to file for graduation. Students learn how to record complex financial transactions, and how to document the strategic decisions made by a company’s financial managers. Auditing and forensic accounting are also taught, so that graduates know how to identify fraud and irregularities when they see them.
Typically, the goal of pursuing a Master of Accounting degree is to obtain the minimum number of hours required to sit for the CPA exam. In most states across the country, that threshold currently stands at 150 credits. For this reason, most accountants also take a bit of extra time after graduation to study the CPA guides and establish a solid foundation of knowledge that will help them earn a passing score on this test.
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Different Degrees, But a Similar Goal: Financial Stability for All Involved
Financial professionals make key decisions that affect the wealth or financial stability of their clients. An accountant, conversely, is charged with recording those decisions, documenting them as necessary, and balancing them against the company’s cash and other assets. The degree programs reflect these different, yet aligned, interests. According to US News and World Report, the primary way that a Master of Finance differs from a Master of Accounting, then, is in its focus on financial strategy rather than financial accountability.
