{"id":1848,"date":"2022-11-08T10:51:04","date_gmt":"2022-11-08T15:51:04","guid":{"rendered":"https:\/\/theforage.wpengine.com\/?p=1848"},"modified":"2024-11-21T11:12:03","modified_gmt":"2024-11-21T16:12:03","slug":"actuary-vs-accountant","status":"publish","type":"post","link":"https:\/\/theforage.wpengine.com\/careers\/actuary-vs-accountant","title":{"rendered":"Actuary vs Accountant: What’s the Difference?"},"content":{"rendered":"\n

If you\u2019re looking for a career path that uses math skills in a finance or business industry, there\u2019s a good chance you\u2019re considering a role as an actuary or an accountant. While both roles use data and financial information in their everyday work, they apply their problem-solving skills differently \u2014 and for different outcomes. So, what\u2019s the difference between an actuary vs. accountant?<\/p>\n\n\n\n

An actuary reviews data to calculate risks, typically for insurance premiums or business decisions. On the other hand, an accountant compiles and reports financial information for things like taxes, year-end statements, and budgeting. <\/p>\n\n\n\n

While the careers have many overlaps \u2014 both review financial data and help companies make decisions \u2014 there are significant differences between accountants and actuaries, from their work environments to their typical salaries. In this guide, we\u2019ll review exactly what each role involves, including the path to landing them. Then, we\u2019ll share a free, fun quiz to help you figure out whether becoming an actuary vs. accountant is right for you.<\/p>\n\n\n\n

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Jump to Actuary vs. Accountant: Which One Is Right for Me? Quiz \ud83e\udd14<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

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What Do Actuaries Do?<\/h2>\n\n\n\n

To put it simply, actuaries assess risk. They help companies determine potential risks and work to find ways to avoid the wrong risks and take on worthwhile ones. An actuary’s work involves using statistical analysis and business acumen to help companies plan ahead. <\/p>\n\n\n\n

Actuaries are analytical, forward-thinking professionals who are great at doing deep, independent analysis. They are methodical and often focus on accuracy over speed. At the same time, they need to be curious and patient in order to solve complex problems \u2014 and take the time to study for the multiple exams you need to grow in this career path (more on that later).<\/p>\n\n\n\n

Actuaries typically work in the insurance field, but many other industries need skilled risk assessors, such as accounting firms, big banks, and consulting companies. <\/p>\n\n\n\n\t

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\n\t\t\t\t\t\"NYC\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

AIG Actuarial Analyst<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

Experience a day in the life working as an actuary at AIG. Develop advanced actuarial skills by completing real-world professional tasks.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\n\t\t\t\t\t\t\tGet started\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t
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\n\t\t\t\t\t\tAvg. Time:<\/span>\n\t\t\t\t\t\t2-3 hours\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\tSkills you’ll build:<\/span>\n\t\t\t\t\t\tResearch, data interpretation, problem-solving, analytical thinking, technical writing, data analysis, risk assessment\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

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>>LEARN MORE: <\/strong>What Is an Actuary?<\/a><\/p>\n\n\n\n

What Is Their Work Environment Like?<\/h3>\n\n\n\n

Actuaries typically work in corporate offices with a standard 40-hour workweek. They tend to have a consistent workload throughout the year. <\/p>\n\n\n\n

While most of their work requires focused data analysis, they do work in smaller, specialized teams. Typically, they collaborate with underwriters, data scientists, and business strategists. Actuaries must be adept at translating their findings to others, especially non-technical stakeholders who need updates on risk assessments<\/p>\n\n\n\n

What Do Accountants Do?<\/h2>\n\n\n\n

Accountants record, review, and report financial information for companies. This can include forecasting future financial performance, preparing tax documents, or advising a company on ways to cut costs and improve profits. <\/p>\n\n\n\n\t

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\n\t\t\t\t\t\"PwC\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

PwC Tax<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

Experience a day in the life of a tax accountant at one of the big four accounting firms.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\n\t\t\t\t\t\t\tGet started\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t
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\n\t\t\t\t\t\tAvg. Time:<\/span>\n\t\t\t\t\t\t3-4 hours\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\tSkills you’ll build:<\/span>\n\t\t\t\t\t\tReviewing a trial balance, chart of account mapping, book to tax difference, research, data analysis, tax research\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

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These professionals are highly organized and detail-oriented, using their analytical skills to look closely at financial information. They are systematic problem-solvers who are comfortable breaking down complex information into manageable parts \u2014 after all, communication is an important part of their job. Accountants not only need technical skills to do their analysis, but also interpersonal skills to then communicate their analysis to stakeholders.<\/p>\n\n\n\n

Accountants are typically either public or private, meaning they either work in-house for a company or they work for an accounting firm, providing consulting services to clients. <\/p>\n\n\n\n

>>LEARN MORE:<\/strong> What Does an Accountant Do?<\/a> <\/p>\n\n\n\n

What Is Their Work Environment Like?<\/h3>\n\n\n\n

Accountants work in various environments, including corporate offices, client sites, or even remotely. Public accountants, for example, may often need to travel to client locations. <\/p>\n\n\n\n

Their work hours vary significantly by specialization, and may require overtime during busy seasons and key periods. For instance, tax accountants tend to have a heavy workload in the beginning of the calendar year during tax season (which ends in April). Corporate accountants may have an increased workload during monthly or quarterly close periods.<\/p>\n\n\n\n

Accountants often work within larger teams where they regularly interact with other departments. In public accounting, client-facing roles are more common.<\/p>\n\n\n\n

Actuary vs. Accountant: Which One Is Right for You? Quiz<\/h2>\n\n\n