Finance Manager vs. Accounting Manager: What Are the Differences?

A career in finance or accounting can be both challenging and rewarding. Two common positions in these fields are finance manager and accounting manager. Though both roles are important to the success of a business, there are several key differences between them.

In this article, we discuss the differences between a finance manager and an accounting manager, and we provide additional finance and accounting professions you may be interested in pursuing.

What is a Finance Manager?

Finance Managers are responsible for the financial planning and record keeping of their organization. They produce financial reports, direct investment activities and develop strategies to grow the organization’s assets. Finance Managers also create plans to reduce financial risk and maximize profits. They work with other managers to make sure that the organization’s financial goals are met. Finance Managers typically have a bachelor’s degree in accounting, finance or business. Some organizations may require Finance Managers to have a Certified Public Accountant (CPA) license.

What is an Accounting Manager?

An Accounting Manager is responsible for the financial health of their organization. They oversee the accounting department and staff, ensuring that all financial reporting is accurate and timely. They develop and implement accounting policies and procedures to ensure compliance with generally accepted accounting principles (GAAP). Accounting Managers also prepare and present financial reports to upper management, shareholders and boards of directors. They may also be responsible for managing the budget and forecasting future financial needs.

Finance Manager vs. Accounting Manager

Here are the main differences between a finance manager and an accounting manager.

Job Duties

Accounting and finance managers fulfill different duties within a business. Accounting managers oversee the accounting department, which is responsible for recording and processing financial information. These professionals decide on departmental goals and objectives, hire and train staff members and ensure that employees follow accounting procedures correctly.

Finance managers typically have different job responsibilities. They work closely with other financial departments, such as sales and investment banking, to determine how best to spend and allocate company funds. Finance managers also create budgets, monitor spending habits and develop financial plans for the company. They may also be responsible for managing the purchase and sale of company assets.

Job Requirements

Finance managers and accounting managers typically need a bachelor’s degree in business administration, accounting or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many finance managers and accounting managers pursue certifications through the Certified Public Accountant (CPA) or Certified Management Accountant (CMA). These organizations offer training programs that teach professionals how to use accounting software and other tools they might need on the job.

Work Environment

Accounting and finance managers can work in a variety of environments, depending on the industry they’re working for. For example, an accounting manager may work at a small business or nonprofit organization where they oversee all financial operations. Alternatively, a finance manager may work at a large corporation that has many different departments and employees.

Finance and accounting managers typically spend most of their time in an office environment, but some may travel to visit clients or attend conferences.

Skills

Both finance managers and accounting managers use financial analysis skills to examine an organization’s financial statements and make recommendations about how the company can improve its financial health. They also both develop budgets and forecast future financial needs. However, their specific responsibilities differ somewhat.

Finance managers typically focus on long-term planning and investment decisions, while accounting managers usually oversee the day-to-day financial operations of a company. As a result, finance managers need strong strategic planning skills, while accounting managers need excellent organizational skills. Both finance managers and accounting managers need to be able to effectively communicate their findings and recommendations to upper management.

Salary

The average salary for a finance manager is $107,233 per year, while the average salary for an accounting manager is $89,252 per year. Both of these salaries can vary depending on the size of the company, the location of the job and the level of experience the employee has.