Do you know what the difference is between having a career in accounting, and a career in finance? If you ask someone outside the finance and accounting fields, he or she might not be able to explain the difference between the two disciplines. However, there is some crossover between the two that can blur the lines and make it seem like an Accountant would be a good fit for a finance role, and vice versa. Petersons.com breaks down a couple of the key differences as, “Finance is specifically a subject of study which involves the management of money, while accounting is a subject which involves obtaining, collecting, organizing and otherwise dealing with financial information.” So is there a time you should hire an Accountant for a finance role?
Maybe and maybe not, it’s not always a straightforward decision.
- Here’s when hiring an Accountant for a finance role might be a good idea:
- Is your role focused on budgeting and forecasting? An Accountant likely understands financial statements and therefore can step into a budgeting and forecasting role fairly easily.
- Does the candidate seem like he or she has the ability to deal with gray areas? If they are not focused specifically on historical data, their experience could translate well into a finance role.
- Are they driven to make the switch to finance and excited by what they can contribute? If they seem like they’re just open to finance vs. accounting, you might want to watch your step.
- You like the candidate’s personality, you like their experience, and you can hire someone that does not have all the requirements that you need immediately because you have the time to train this person to some degree.
- Here’s when you should skip hiring an Accountant for a finance role:
- They’re open to finance, but would also look at an accounting only job. If you’re feeling like they love accounting, but haven’t found the right role, and are now looking at finance, you’ll want to dig into this with additional questions to see if this is a “new adventure” or a true desire to shift the focus of their career.
- If you’re asking behavioral questions in the interview and you get the sense that the candidate is very focused on black and white and can’t see in shades of gray, this accounting candidate might not be able to navigate through nuances that your role requires.
- The candidate seems like he or she has limited communication skills and may meet the criteria for a “stereotypical Accountant.” If your role requires a candidate to enjoy a role that’s not “heads down” and in the details, a finance focused background might be a better fit.
- If your role is a complex finance role that requires past experience with NPV, discounted cash flow analysis and complex modeling; these are not skills your typical Accountant will have immediately. There will need to be training and time invested to build these skills which the state of your business or finance department might not be able to support.
It is possible to make the switch from a traditional role in accounting to a finance role, but there are certain gateway roles that make more sense than others. If you’re considering hiring an Accountant for a finance role, take these criteria under advisement to assess the likelihood of their success in a finance focused role. The right candidate, for the right role, at the right company might not always seem like the perfect fit on paper. So consider throwing caution to the wind to interview an Accountant for a finance role if there’s a possibility he or she could thrive in your position!