Actuary Vs Accountant: What’s The Difference?

If you love numbers, enjoy analysis, and are looking for a great career that encompasses both, you may be wondering what path to take: actuary or accounting? Both are fantastic options, with some important differences to consider. Here, we lay it all out for you and discuss the differences between actuary vs accountant when it comes to job outlook, salary, educational requirements, and more.

Actuary vs Accountant

Both actuaries and accountants make calculations, analyze data, report on finances and conduct research and statistical analysis.

However, they do differ in some important ways. Actuaries analyze data and calculate risks, whereas accountants do more general financial work for companies.

We dive into the specifics on actuary vs accountant below.

What is an Actuary?

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Actuaries analyze financial consequences of business risks.

They are experts in business, mathematics, statistics, and economics theories. They can generate financial roadmaps for companies with regards to unforeseen circumstances, creating insurances and protections.

Statistics are at the core of the job of an actuary, so actuaries must be data analytics experts. They must be able to turn dense datasets into tangible action plans for companies and individuals, and translate that information into commonly understood language.

What is an Accountant?

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Accountants are a more common profession. These financial experts may conduct payroll, manage investments and expenses, and account for internal finances such as transaction data.

Accountants are generally responsible for keeping track of the finances of a firm, making sure they are accurate, and submitting annual records.

Actuary vs Accountant Examples

While both actuaries and accountants work in finance, there are some notable differences between the two when it comes to salary, educational requirements, certifications, work environment, and career scope.

For example, actuaries, on average, make much more money than accountants. However, the certification process can take time — so many actuaries spend part of their career working in lesser paying jobs before working as an actuary.

Accountants on the other hand, can begin work as an accountant right after getting an education.

Salary: Actuary vs Accountant

Actuary

Actuaries are paid handsomely. While salaries can vary depending on industry, location, and years of experience, actuary salaries range from $76,000 – $126,000 per year. The average salary for an actuary is $97,776 per year.

Accountant

Accountants are also paid well, but average salaries are much lower for accountants compared to actuaries. The average accountant salary is $53,748 per year, almost half that of an actuary. Certified Public Accountants, or CPAs can earn higher than that, with an average annual salary of $66,287.

Education: Actuary vs Accountant

Actuary

Most actuaries complete a bachelor’s degree in mathematics, actuarial science, statistics or calculus. For certification, graduates must have a number of undergraduate credit hours in economics, statistics, business, and finance.

Accountant

A bachelor’s degree is required to enter the field of accounting. Typical majors for accountants include business, finance, or accounting. The degree must have a certain number of credit hours for courses such as taxation, accounting, finance, and business. Some employers require or prefer applicants with a master’s degree in finance or accounting.

Training and Experience: Actuary vs Accountant

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Actuary

Most actuaries begin training after degree completion. Training for actuaries consists of obtaining an entry-level position, and working under the guidance of an experienced actuary and mentor during the training period.

In-training actuaries may not be able to perform all duties of the position yet, and will be asked to take on more assistive responsibilities such as research and data collection for their mentor.

Accountant

Many accountants start their career with an internship during their studies. After graduating, accountants can find entry-level jobs in a variety of industries while they work towards their certification in public accounting.

They may also receive on-the-job training and guidance in the first few months of employment. In these first few months, accountants learn about the company and any specific information about their role.

Certifications: Actuary vs Accountant

Actuary

After graduation from a bachelor’s degree, and in order to become certified, actuary candidates must complete a series of ten exams which test mathematical skills and abilities. These exams are notoriously difficult, and have low rates of passing. Many actuaries take between 7-10 years to pass all of the exams.

Accountant

Accountants do not need to be certified to begin their career. However, if an accountant wants to stand out as a candidate, or increase their earning potential, they may choose to become a CPA, or Certified Public Accountant. CPA exams are easier than actuarial exams, and take less time. The CPA exam is split into four sections, each of which can be taken as a separate 4-hour exam. All sections must be completed in an 18-month time frame. Pursuing a specialized certificate program in accounting can give one’s career a great boost.

Work Environment: Actuary vs Accountant

The work environment for both actuaries and accountants are similar. Both will generally work in a full-time capacity within an office environment. Oftentimes, work is done solo, though meetings are required on occasion.

Actuary

Actuaries may need to work long hours or overtime hours, depending on business needs. Most work with insurance companies, but others may work in the corporate setting in large companies and banks.

Accountant

Depending on the time of year, accountants may work long hours and weekends as well. This may be especially true during tax season. Most accountants either work in an accounting firm, or within the finance department of a company.

Career Scope: Actuary vs Accountant

Actuary

Actuaries will always be needed by insurance firms to assess risks. They may work for other consulting firms, but the majority of actuaries work in insurance. Because most actuaries work in this small industry, jobs are limited and tend to be only available in larger cities.

There are more entry-level positions on the job market than senior-level ones — however, competition is higher for these beginner actuary positions. Job outlook for actuaries is high, as the job market is expected to grow 20% between 2018-2028.

Accountant

Unlike actuaries, accountants are needed in all industries and companies. Large companies employ teams of accountants within a finance or accounting department to help with all financial, accounting, and bookkeeping needs. According to the Bureau of Labor Statistics, job rates for accountants are growing at 6%, which is about average for all jobs.

The Bottom Line

All things considered, between actuary vs accountant, both are great career options. But each one has different education and certification requirements, earning potential, and job responsibilities — so be sure to keep these in mind when choosing which path you choose to take.