Actuary or Accountant

I don't know how much money a "freelance" accountant earns, but if you start your own practice then skys the limit.

As for Actuarys - the work actually involves very complicated Maths, which is why it was so well paid, but now everything is done by computers, so its alot easier.

Reply 4

Actuaries earn a ton more than Accountants.

Trainee Actuaries are around the mid-twenty mark, whereas a freshly qualified Actuary is on £44k, give or take a grand.

Senior Actuaries often make the £100k mark.

Reply 5

As said though, there isn't really an opportunity to start your own practice or business. If you start your own accountancy firm and are succesful, say if you have 10 employees, you could easily be making £2million a year - your only expenses are with computer equipment, mortgage(which is an investment, not a cost), stationery/post/similar, and salaries/employee costs.

Average salary of an accountant is 40k, say, so 400k goes on staff salaries, lets say £1-1.5mil on costs, as the owner/partner/whatever you're making 100-500k.

Reply 6

Of course you can start your own Actuary practice.

Reply 7

I quite like this idea of running your own accounting practice. It seems like the only way to make a lot in finance without working like a donkey(NB I am not saying its easy this time - I know its not!).

I've met a few of my dad's friends who are partners of small accouting firms - I don't know exactly how much they earn, but judging by what I've seen of their cars/houses, a hell of a lot. And the good bit is one of them told me they rarely work more than three days a week.

Come to think of it, this is a good point for all those wannabe IBers on this forum who critise accounting (or beancounting as they like to call it). I'd like to so them try to make several hundred grand at an IB off only three days a week...

Reply 8

ConnorH

OP

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I quite like this idea of running your own accounting practice. It seems like the only way to make a lot in finance without working like a donkey(NB I am not saying its easy this time - I know its not!).

This is exactly what I was thinking. I liked the look of the actuary proffesion because i'd like to work in finance and the salary looked great. But i've read its rare for actuarys to open up their own practice whereas its more common for accountants to do it.. making the decision harder :/.

Oh and does anyone have any idea of how much it would cost to set up your own practice?

Reply 9

melquíades el gitano

9

Senior accountants make over 100K too.
Directors at Deloitte - that's the level before partner - will make in excess of 100K a year, and you can expect to be a director after 8 years if you join as a graduate. That's working 35-60 hour weeks.
I'm not sure if actuaries can make the same amounts working those hours..

Reply 10

ConnorH

This is exactly what I was thinking. I liked the look of the actuary proffesion because i'd like to work in finance and the salary looked great. But i've read its rare for actuarys to open up their own practice whereas its more common for accountants to do it.. making the decision harder :/.

Oh and does anyone have any idea of how much it would cost to set up your own practice?

Yep, its because actuaries advise is always very highly specialised and sophisticated, so only large firms can afford to and need to employ their services. Whereas accountants, although they have highly specialised knowledge too, often advise smaller firms on less sophisticated issues, so you're right, I would think the have much more scope to start their own practices.

Hmmm..sounds like a tough decision for you. For me it would be easy, I'd choose accountancy. But that won't really help you because my reason is that the actuarial qualification is just unnecessarily mathematical for my needs/desires.

One really useful piece of advice that I can give (hope I'm not sounding like too much of a wannabe smart arse for a school student), is that if after much thought you are still really unsure, choose accountancy. I'm pretty sure, NO-ONE qualifies with ACA and regrets it - its such a useful and broad qualification.

Reply 11

Omar, please stop telling people stuff that although may be true, doesn't provide evidence for the point you are trying to make. Accountants are required by every business, as it's a necessity to do the companies accounts. Every business does not however have actuarial requirements, hence the larger scope for Accountants. Do you actually know what an Actuary does? I really don't mean to be rude, but when you could influence someone's future, I think it is important to relay true information. This also goes to re-iterate the fact that you shouldn't solely base your life/career decisions on a forum....

Reply 12

melquíades el gitano

Senior accountants make over 100K too.
Directors at Deloitte - that's the level before partner - will make in excess of 100K a year, and you can expect to be a director after 8 years if you join as a graduate. That's working 35-60 hour weeks.
I'm not sure if actuaries can make the same amounts working those hours..

What about all the people who aren't made directors, what happens to them? I think 100k is a little on the optimistic side, too.

The difference between a 35 and 60 hour week is a significant one as well, I'd rather be time rich and money poor than vice versa.

Obviously setting up an accountancy practice isn't as easy as it sounds, else everyone would have done it, but its certainly the route I'll be taking I think - the appeal of being an entrepreneur as well as a professional is quite strong for me.

Reply 13

Singh_87

Omar, please stop telling people stuff that although may be true, doesn't provide evidence for the point you are trying to make. Accountants are required by every business, as it's a necessity to do the companies accounts. Every business does not however have actuarial requirements, hence the larger scope for Accountants. Do you actually know what an Actuary does? I really don't mean to be rude, but when you could influence someone's future, I think it is important to relay true information. This also goes to re-iterate the fact that you shouldn't solely base your life/career decisions on a forum....

Actuaries are very important as you say, but its a very niche profession, everybody needs accountants, not everyone needs an actuary, and those who do would rather use the well established, large companies that are already around, hence the small amount of private actuary practices around.

Reply 14

x.narb.x

Actuaries are very important as you say, but its a very niche profession, everybody needs accountants, not everyone needs an actuary, and those who do would rather use the well established, large companies that are already around, hence the small amount of private actuary practices around.

Is what I said earlier, no?

Accountants are required by every business, as it's a necessity to do the companies accounts. Every business does not however have actuarial requirements, hence the larger scope for Accountants.

Reply 15

Singh_87

Omar, please stop telling people stuff that although may be true, doesn't provide evidence for the point you are trying to make. Accountants are required by every business, as it's a necessity to do the companies accounts. Every business does not however have actuarial requirements, hence the larger scope for Accountants. Do you actually know what an Actuary does? I really don't mean to be rude, but when you could influence someone's future, I think it is important to relay true information. This also goes to re-iterate the fact that you shouldn't solely base your life/career decisions on a forum....

Well you're just agreeing with me...you're right the scope is larger for accountants...

Yes I do know what an actuary does. Perhaps not in as much depth as you do, but I know enough to say for sure that everything in my last post was true.

"you could influence someone's future" - well good for him, you just said yourself everything I said is true.

And ofcourse you shouldn't solely base your life/career decisions on a forum. My opinion is only that of one person. But he knows that. I hope.

Reply 16

Umm..no, I said what you said is true in the sense that actuaries advisory services are usually of a more sophisticated and complex nature, however this is not why Actuaries may find it more difficult to start their own practice.
If you re-read what I said, what you wrote is true, but it does not prove the point you were trying to make.

Reply 17

Singh_87

Is what I said earlier, no?

Missed that post, I just remember you earlier saying "of course you can start your own actuary firm" when I wasn't denying that - just saying that theres less scope to the point where its unrealistic.

Yes, technically, its possible, but realistically, its not.

Reply 18

x.narb.x

Missed that post, I just remember you earlier saying "of course you can start your own actuary firm" when I wasn't denying that - just saying that theres less scope to the point where its unrealistic.

Yes, technically, its possible, but realistically, its not.

Oh right, well then coolio :smile:

Reply 19