Frequently Asked Questions about Finance and Accounting
What is finance?
Finance is defined as the management of money, currency, and assets. People employed in finance perform activities such as budgeting, borrowing, saving, investing, lending, and forecasting. The field is generally organized into the following areas:
- Corporate finance – actions managers take to increase the value of the company for its shareholders
- Personal finance – how one manages their personal spending, saving and risk
- Public or Government finance – related to sovereign states, sub-national entities, and related public entities manage their debt, assets, and investments
Why is finance important?
Managing money, currency and assets is a critical element for any organization. These activities ensure that an organization is sustainable – that it can continue operations at a healthy level while paying its debt.
Is finance a good career path?
In 2022, LinkedIn listed Finance as one of the Top 20 In-Demand Skills, which means that Finance was featured as a skill 78% of postings do the platform. Accounting and Finance was also listed in the company’s 2021 list. The US Bureau of Labor Statitics projects that business and finance employment will grow by 8% from 2020 to 2030.
Finance careers also come with relatively high stress. There are highly regulated monthly and yearly deadlines that must be met. Decisions made by financial managers can have large impacts on an organization and its employees.
If you are a person who is detail-oriented, good with numbers and organization, and manages stress well, Finance can be an excellent career path.