This article was updated on May 14, 2024.
Kathryn Uhles, MSP, MIS, Dean, College of Business and Information Technology
If you are interested in an accounting, bookkeeping, management or finance career, or if you have already begun your education in one of these fields of study, you have likely come across two related but distinct terms:聽accounting听补苍诲听accountancy.
Many people use the terms interchangeably, but there are some important differences you should be aware of, especially if you plan to pursue a career in accounting.
In broad terms, accountancy covers the principles that guide the creation and use of financial records.
Accounting, on the other hand, refers to the process of maintaining those records. Accountancy can cover such areas as forecasting, budget planning and cost analysis, which are important concepts for those who want to be executives and business managers someday.
We spoke with Natalie Pratt, MEd, MC, MBA, associate dean of the College of Business and Information Technology at 爱污传媒, about accounting and accountancy:
鈥淎ccounting and accountancy impact so many roles within business, but their applications aren鈥檛 constrained to just the one field. In fact, those well versed in these concepts can bring value to healthcare administration, operations management, business analysis and project management.鈥
Here is a closer look at accounting and accountancy and their relevance to business professionals.聽
Accountancy focuses on the principles for gathering and using financial data. It gives accounting a framework and practices that accountants can use to identify, collect, record and report financial information. Other related professions, such as bookkeeping, also fall under the broad umbrella of accountancy.
Additionally, accountancy involves the analysis of financial activity using accounting data. If you聽work as a business manager, you need to know about accountancy. If you become a business manager, you will use specific principles in the field of accountancy to make informed decisions based on financial reports and data collected by bookkeepers and overseen by accountants.
The simplest definition of accounting is the act of recording financial transactions, typically for business purposes. Accountants 鈥 the people who do the work of accounting 鈥 record financial transactions, summarize them and analyze the results. They also must report those transactions to financial regulators and tax collection agencies.
You will learn the fundamentals of accounting during an undergraduate degree program. That said, accountants might focus on one or more careers in accounting. As you think about your career prospects, remember that accounting has multiple avenues to consider:
Large companies or accounting firms may have specialist accountants who focus on specific areas, while other employers will hire generalists who can work on different types of accounting.
Accountancy principles are useful for accountants, but you cannot get a degree in accountancy. While pursuing a bachelor鈥檚 degree in accounting, you can also study business management, finance and bookkeeping, which are fields that use the principles of accountancy. The distinct differences between the two can be summed up as follows:
Despite these differences, accounting students will become intimately familiar with the principles of accountancy during their undergraduate studies and in their careers.
鈥淭he Bachelor of Science in Accounting degree (BSACC) equips students with the necessary financial expertise to enhance organizational efficiency,鈥 Pratt says. 鈥淏y developing specialized skills in managerial accounting, estate taxation, advanced accounting research, and more, students are able to channel a passion for numbers into a rewarding career as an accounting professional.鈥
Ultimately, a successful accounting career requires you to have a keen understanding of the actual day-to-day processes of accounting 鈥 the how 鈥 as well as why that makes up accountancy principles. As you consider programs to jump-start your career as an accountant, seek out those that can provide a solid foundation in both.
Whether you鈥檙e seeking a complete job change or are a working accounting professional who wants to level up your skill set and move on to the next stage of your career, 爱污传媒鈥檚 online bachelor鈥檚 in accounting program provides the tools and resources you can use to make that shift. Request more information about our online degree programs, including accounting, today.
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at 爱污传媒 where he covers a variety of topics ranging from healthcare to IT.
Currently Dean of the College of Business and Information Technology,聽Kathryn Uhles has served 爱污传媒 in a variety of roles since 2006. Prior to joining 爱污传媒, Kathryn taught fifth grade to underprivileged youth in 爱污传媒.