While some think they are the same, there is a difference between accountants and actuaries. There are some similarities between these two professionals with the main one being that they both work with numbers. The main difference is that while accountants deal with actual numbers that are right there in front of them, while an actuary analyzes numbers and makes predictions. Here is some information on accountants and actuaries, including career outlook for both.

What Does an Accountant Do?

Accountants prepare and examine financial documents for accuracy and compliance with laws. They oversee the financial operations of an organization to help it run efficiently and profitably. Other duties of accountants include the following.

  • Inspect accounting books, systems, and procedures for accuracy and efficiency.
  • Prepare tax returns, computer taxes and make sure they’re paid on time.
  • Maintain and organize financial records.
  • Develop ways to cut costs and make the company more profitable.

Accountants are required to have at least a bachelor’s degree in accounting or a related field. Accountants may specialize in a certain area of accounting, such as public accounting, management accounting, government accounting, internal auditing or information technology auditing. Many accountants advance their studies and become certified public accountants (CPAs), which requires passing the 4-part Uniform CPA examination.

Ranking: Top 10 Online Bachelor’s Degree in Accounting Programs

What Does an Actuary Do?

An actuary’s main goal is to minimize the cost of risk for an organization. They use statistics, mathematics, and financial theories to determine if and how potential events can cause financial risk to an organization. They analyze how much certain risks will cause the company.

Based on their findings, they develop policies to minimize the financial risk a company can incur. Their services are used heavily by the insurance industry. Duties of an actuary include the following.

  • Gather statistical data for analysis.
  • Develop, test and administer pension plans, insurance policies, investments and similar strategies to reduce risk and increase profitability.
  • Estimate the likely financial cost of circumstances such as accidents, sickness, death or natural disasters.
  • Create tables, charge, and reports to demonstrate proposals and calculations.
  • Show their proposals to government officials, company executives, clients and shareholders.

Actuaries working for insurance companies often choose an area of specialization such as life insurance; health insurance; property and casualty insurance; pension and retirement benefits; and enterprise risk. Actuaries must have bachelor’s degrees to begin their careers but must obtain certification to become an associate or a fellow actuary. These can take from four to ten years to reach the status of a fellow actuary.

Career Outlook

Accountants are expected to see an employment growth of 10 percent between 2016 and 2026, according to a report by the U.S. Bureau of Labor Statistics (BLS). They predicted that actuaries could see job growth of up to 22% during that same decade.

As of a May 2017, accountant’s annual wages ranged from $43,020 for the lowest 10 percent to $122,220 for the top 90 percent with the median wage at $69,350. The wages for actuaries ranged from $59,950 to $184.770 with the average wage at $101,560. While both of these careers offer individuals many career opportunities, outlook and wages are two major areas where there is a difference between accountants and actuaries.

An individual who enjoys working with numbers and has a good background in math may automatically choose to pursue a career in accounting. The great news is that accounting offers the opportunity for many career options, including being an actuary. Knowing the difference between accountants and actuaries may be all that’s needed to help the candidate make a final choice.