Finance vs. Accounting vs. Taxation Programs
B-School Search
For the 2023-2024 academic year, we have 118 schools in our BSchools.org database and those that advertise with us are labeled “sponsor”. When you click on a sponsoring school or program, or fill out a form to request information from a sponsoring school, we may earn a commission. View our advertising disclosure for more details.
Accounting, finance, or taxation? Candidates considering graduate study in one of these quantitative fields would be wise to study the chart below. The table compares key characteristics of specialized master’s degree programs in each of these three fields with a general MBA degree.
In general, the primary factor that distinguishes these programs from one another other is work experience. The best non-executive, leadership-oriented master of business administration (MBA) degree programs require three to four years of experience and the executive programs require a minimum of four, with most candidates averaging seven years and many having ten years or more. Schools frequently award GMAT and GRE waivers in exchange for work experience in some of these programs—especially in the blended and online programs where relatively few entrants provide scores.
By contrast, most of the shorter specialized master’s degree programs in accounting and finance are technical pre-experience degrees, meaning that they generally do not require experience but ask for GMAT or GRE scores instead. Exceptions exist, however, in that master’s programs in taxation can mandate some fairly strenuous requirements, both in work experience and prior accounting degrees or coursework. Some master’s degrees in accounting require undergraduate degrees in the subject, and others do not.
Either way, an MBA or a specialized master’s degree in one of these three disciplines will all advance one’s career. Although they share many similarities, they differ significantly in admissions requirements, coursework, and salary potential. Read on to learn the details of each degree program, and how they compare.
| Master of Business Administration (MBA) | Master’s in Accounting | Master’s in Finance | Master’s in Taxation | |
|---|---|---|---|---|
| What is It? | A general business degree that provides broad-based management knowledge and skills. | A specialized degree that focuses on accounting practices and data analytics. | A specialized degree that concentrates on financial and investment management. | A specialized degree that specializes in the taxation of corporations and partnerships. |
| Who Can Benefit? | Recent graduates, mid-career professionals, entrepreneurs, managers, and executives from a variety of industries who need the business acumen and management skills required to lead an organization. | Graduates who need training for specialized careers in public and corporate accounting, especially those preparing for the Certified Public Accountant (CPA) examination. | Graduates who need training for specialized careers in corporate finance, consumer banking, financial planning, portfolio management, and risk assessment, especially those preparing for the Chartered Financial Analyst (CFA) examinations. | Graduates who need accounting training for specialized careers focused on federal and state income taxation, including accounting degree holders, certified public accountants (CPAs) and attorneys. |
| Typical Duration | Two to three years, but specialized tracks exist. An accelerated program may take as little as one year, while a part-time program may allow up to six years to complete. | One to two years, but students can complete intensive programs in under a year. Integrated programs, where students simultaneously pursue undergraduate and master’s degrees, can also reduce study time. | Two years, but specialized tracks exist. An intensive program can graduate students in 16 months, while a part-time schedule may allow a longer and more flexible completion period. | Most programs require 12 to 18 months to complete, but a part-time or flexible schedule may allow a longer completion interval. |
| Admissions Requirements | Bachelor’s degree, competitive undergraduate GPA (3.0 or greater), letters of recommendation, personal statement, essays, and test scores. See detailed section below on “Admissions Testing and Waivers.” | |||
| Prerequisite Coursework | Common requirements include calculus and undergraduate courses in economics, economic statistics, accounting, and finance. | Some programs require undergraduate accounting degrees, and others do not. For those not requiring accounting degrees, common requirements include calculus and undergraduate courses in economics, economic statistics, accounting, and finance. | Common requirements include calculus and undergraduate courses in economics, economic statistics, accounting, and finance. | Extensive prerequisites are common, such as an accounting degree. For programs not requiring accounting degrees, common requirements include calculus and undergraduate classes in economics, economic statistics, accounting, and finance. |
| Work Experience |
Most programs require at least three years of relevant professional experience, with some asking for two years and a minority requiring none. Executive MBA programs require at least four years. See our guides, on typical requirements, part-time programs, and MBA vs. PMBA vs. EMBA programs for more details. |
Generally, this is a pre-experience specialized master’s degree; however, some programs prefer candidates with at least a year of relevant professional experience in accounting or business. See our guide MBA vs. MS Programs – Similarities and Differences for more details. |
Generally, this is a pre-experience specialized master’s degree. See our guide MBA vs. MS Programs – Similarities and Differences for more details. |
Some require one to two years of relevant professional experience in accounting, law or business. Others may be pre-experience specialized master’s degrees. See our guide MBA vs. MS Programs – Similarities and Differences for more details. |
| Admissions Testing and Waivers |
Only the elite (M7) and some of the top full-time on-campus programs continue to require GMAT or GRE scores of all applicants. Waivers are automatically granted to candidates with five to seven years experience at some schools and usually given to students with more than three years of work experience. See our guide on GMAT waivers for more details. |
Although exceptions exist, schools usually require GMAT or GRE scores because the schools target most of these specialized master’s programs toward candidates who are pre-experience. | Although exceptions exist, schools usually require GMAT or GRE scores because the schools target most of these specialized master’s programs toward candidates who are pre-experience. | Varies by program. Some require GMAT or GRE scores, but others do not. |
| Specializations and Concentrations | Some schools do not offer concentrations but provide electives instead. Popular concentrations include strategy, finance, accounting, marketing, organizational leadership, information technology, and healthcare. | Popular tracks include auditing, taxation, corporate governance, international business, data analytics in accounting, information technology and control, finance, real estate, and supply chain management. | Some schools offer electives instead of concentrations. At schools offering concentrations, common choices include capital markets, corporate finance, financial engineering, and investment management. | Specializations or concentrations are uncommon since taxation degree programs are already highly specialized. However, some programs may offer elective coursework. |
| Curriculum | Finance, marketing, accounting, leadership, teamwork, management, organizational behavior, operations, business accountability, and ethics See our guide What is a Typical MBA Program Curriculum? | Advanced financial reporting, financial reporting, standards financial statement analysis, advanced income tax problems, auditing and assurance standards, external risk measurement and reporting, and CPA exam preparation courses. | Financial management, valuation, investment theory and practice, advanced corporate finance, financial accounting, managerial economics, advanced valuation and modeling, portfolio management, financial risk management, and financial technology. | Corporate income taxation, tax research, income tax accounting, taxation of closely-held business, tax policy, accounting periods and methods, taxes and business strategy, tax procedures, consolidated returns, and reorganization. |
| Salary prospects |
Although salary estimates depend on specialization, location, and work experience, MBA graduates can expect strong earnings, sometimes doubling their salaries upon graduation. For comprehensive research and analysis see our MBA Salary Guide and another guide, Does It Matter Where You Get Your MBA? |
Graduates can expect modest to strong earning potential with the top 10 percent of accountants making more than $120,000 a year. Salary figures depend on location, work experience, and specialization, but the average salary for those holding a master’s degree in accounting is $66,000 a year. | Salary prospects vary by geography, experience, concentration, and role, but graduates should enjoy moderate to strong earnings potential. The average pay is $77,000 per year with financial directors, portfolio managers, and senior financial analysts earning well over $100,000, according to Payscale. | Payscale reports that the average salary for graduates with master’s degrees in taxation is about $86,000, with senior tax managers holding this degree earning about $130,000. |
| Featured Online Programs |
Johns Hopkins University, Carey Business School Pepperdine University, Graziadio Business School |
The University of Oklahoma, Gene Rainbolt Graduate School of Business The University of Missouri, Robert J. Trulaske, Sr. College of Business |
||
| The Bottom Line | This is an advanced, generalist degree that prepares graduates for leadership roles in many industries. Graduates gain an understanding of financial and accounting concepts that are relevant to leadership roles and strategic decision making. Graduates with finance and accounting concentrations often accept jobs supervising teams of CPAs, financial analysts, or related specialist and technical professionals. | This degree focuses on the advanced technical and analytical aspects of accounting. Most graduates of these programs sit for the Uniform CPA Examination and continue into careers in public accounting. | This degree focuses on quantitative financial analysis. Graduates can continue on into specialized technical careers with investment banks, commercial banks, private equity firms, hedge funds, and mortgage lenders. Some graduates sit for the CFA exams, others sit for the CPA exam and gain positions in public accounting. | Programs like these prepare graduates for executive careers in the accounting profession with a focus on taxation, where effective decisions require a detailed understanding of tax consequences. The programs also provide the 30 supplemental credit-hours necessary to sit for the CPA exam beyond the 120 hours typically provided by an undergraduate degree. |
