If you’re looking for a career path that uses math skills in a finance or business industry, there’s a good chance you’re 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 — and for different outcomes. So, what’s the difference between an actuary vs. accountant?
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.
While the careers have many overlaps — both review financial data and help companies make decisions — there are significant differences between accountants and actuaries, from their work environments to their typical salaries. In this guide, we’ll review exactly what each role involves, including the path to landing them. Then, we’ll share a free, fun quiz to help you figure out whether becoming an actuary vs. accountant is right for you.
What Do Actuaries Do?
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.
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 — and take the time to study for the multiple exams you need to grow in this career path (more on that later).
Actuaries typically work in the insurance field, but many other industries need skilled risk assessors, such as accounting firms, big banks, and consulting companies.
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>>LEARN MORE: What Is an Actuary?
What Is Their Work Environment Like?
Actuaries typically work in corporate offices with a standard 40-hour workweek. They tend to have a consistent workload throughout the year.
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
What Do Accountants Do?
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.
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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 — 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.
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.
>>LEARN MORE: What Does an Accountant Do?
What Is Their Work Environment Like?
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.
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.
Accountants often work within larger teams where they regularly interact with other departments. In public accounting, client-facing roles are more common.
Actuary vs. Accountant: Which One Is Right for You? Quiz
Now that you know more about what actuaries and accountants do, which one best matches your skills, career goals, personality type, and more? Take the quiz! You’ll need to sign up to get your results, but it’s absolutely free.
Actuary vs Accountant Salaries and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), actuaries had average annual salaries of $132,500 in 2023. Actuaries in certain industries, like banking, or those working for the U.S executive branch, may see significantly higher salaries. Additionally, actuaries working in some states, like Georgia and New Hampshire, may experience a boost in pay.
Actuaries are also in high demand, with projected job growth of 22% between 2023 to 2033, which is much faster than average.
On the other hand, accountants and auditors had average yearly salaries of $90,780 in 2023, according to the BLS. Again, accountants in the U.S. executive branch and the banking industry often make higher salaries, though typically not as high as actuaries. Even in Washington D.C. or New York, the two highest-paying places for accountants, average wages for accountants are much lower than those for actuaries.
The projected job outlook for accountants and auditors is still faster than average at 6%, but is much lower than the job outlook for actuaries.
>>MORE: Check out some of the top-paying finance career options.
Becoming an Actuary vs an Accountant
While both actuaries and accountants start with similar educational backgrounds, the certifications they need to land and grow in their career path differ significantly.
Education
A career in either accounting or actuarial sciences typically begins with a bachelor’s degree. While a specialized degree in accounting or actuarial science can be useful, it isn’t always necessary. In fact, degrees in math, statistics, finance, economics, or business can be great foundations for going into either career.
While there isn’t any required major, not every bachelor’s degree will be the right fit. Both actuaries and accountants have exams they need to pass before they can gain certifications, and having a base level of understanding in math and statistics is useful for passing those exams.
Certifications
Certifications for Actuaries
Actuaries must take a series of exams administered by either the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS). Typically, actuaries who intend to work in life, health, or retirement insurance will go through SOA, while those interested in property or casualty insurance use CAS.
The exams cover various topics, including probability, financial mathematics, and strategic decision-making. In general, taking and passing all required certification exams can take anywhere from five to 10 years.
Certifications for Accountants
Accountants can take a variety of directions, though the two most common certifications are certified public accountant (CPA) and certified management accountant (CMA).
CPAs must pass a standardized test with the American Institute of CPAs to gain certification. Having a CPA license is often required for accountants who want to work for big accounting firms like Ernst & Young (EY).
CMAs, on the other hand, take an exam administered by the Institute of Management Accountants (IMA). A CMA certification is rarely required, but it can be useful for those interested in working for a private company, aiding in the everyday financial decisions of the business.
>>LEARN MORE: How to Choose an Accounting Career Path
Required Skills: Accountants vs. Actuaries
Both accountants and actuaries need a mix of hard and soft skills. Some skills needed for either career include:
- Analytical skills
- Attention to detail
- Business and management skills
- Problem-solving skills
- Proficiency in specific software, such as Excel
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However, not every skill is entirely transferable between the two career paths.
Actuary-Specific Skills
- Understanding of risk management practices and underwriting
- Specialized knowledge in areas of expertise, such as property and casualty insurance or finance
- Knowledge of certain computer languages, including R and Visual Basic for Applications (VBA)
Accountant-Specific Skills
- In-depth understanding of local, state, and federal tax laws and financial regulations
- Strong grasp of generally accepted accounting principles (GAAP)
- Knowledge of internal business processes regarding accounts payable, handling payroll, and budgeting
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Bottom Line
While actuaries and accountants deal heavily with businesses’ numbers and financials, both have their own unique roles. An actuary looks far ahead and determines adjustments in business activity to either avoid or take on risks. An accountant pays attention to the bottom line, recording and reviewing financial data to make informed decisions for the company’s financial future.
Both careers require at least a bachelor’s degree and passing specific exams. While actuaries typically have a longer road to certification than accountants, they also earn a higher salary, on average.
| Actuary | Accountant | |
|---|---|---|
| Primary Function | Risk assessment and probability | Financial recording and reporting |
| Education | Bachelor’s degree required. No specific major required, a major in but math, statistics, finance, economics, or business is typically helpful. | Bachelor’s degree required. No specific major required, a major in but math, statistics, finance, economics, or business is typically helpful. |
| Certification | Required to get a SOA or CAS designation, which can take anywhere from 5-10 years. | Accountants tend to become CPAs or CMAs. |
| Career Timeline | Longer path to full certification | Quicker path to certification |
| Average Salary | $132,500 | $90,780 |
| Job Outlook | 22% growth from 2023–2032 (much faster than average) | 6% growth from 2023–2032 (faster than average) |
| Necessary Skills | Analytical skillsProblem-solving skillsAttention Risk managementUnderwritingSpecialized industry knowledge Computer languages, including R and Visual Basic for Applications (VBA) | Analytical skillsProblem-solving skillsKnowledge of tax laws and regulationsAccounting principles (GAAP)Internal business processes |
| Work environment | Focused and detail-oriented | Analytical and relationship-oriented |
Finally, there are many overlapping necessary skills for accountant and actuary careers. You can start learning the skills you’ll need for either career using Forage’s free accounting virtual experience programs!
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