Isn’t all accounting the same? No, is the correct answer. Even though most people might not give it much thought, there are many different types of accounting careers. For the sake of this blog, we will be focusing on two; technical accounting and financial accounting. In this article, you will learn about the differences between the two to determine which is best for you and your business.
What is Technical Accounting?
In order to use technical accounting services, you should have an idea of what technical accounting is. Technical accounting is a field of accounting that specializes in the monitoring, entering, and analyzing of financial data and transactions of a company or business into its internal systems. The accountant needs technical skills to process financial transactions correctly.
What is Financial Accounting?
Financial accounting is the process of recording, summarizing, and reporting the transactions, revenue, and expenses in a specific period. The transactions are usually related to a business. The primary purpose of financial accounting is to “paint a clear picture” of the company’s performance over that period of time.
The Difference Between Technical Accounting and Financial Accounting
While both roles are vital to help a business stay financially stable, there are some key differences between the two. Technical accountants must have in-depth knowledge of accounting practices and software technologies. Financial accountants don’t really have to deal with the second.
Technical accountants need a technological boost to stay current on tax regulations and guidelines. Due to this, technical accountants are usually responsible for more high-level tasks than financial accountants are. Some of these high-level tasks include advising accounting teams on financial strategies and implementing new policies based on research conducted.
A financial accountant’s work is more administrative. Some examples of their duties include conducting audits, collecting data, and completing taxes on the company’s behalf. Financial accountants may also consult technical accountants for advice, guidance, or research.
Another difference is education. Most financial accountants can get away with only having a Bachelor’s degree. In contrast, technical accountants usually need a Master’s in Business Administration.
As you can see, there are differences between the two accounting fields, contrary to the notion that all accounting is the same. The more technical of the two will require more education and higher-level tasks. Financial accountants may need less education, but they may often have to go to their technical counterparts for advice.
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