I’m a sophomore in the Smeal College of Business at Penn State University Park. I’ve decided to major in Accounting, but I don’t know whether I should go down the Public Accounting or Private/Corporate Accounting path? There’s a 5 year Integrated MAcc program here at Smeal where you graduate in 5 years with a B.S. in Accounting and a Masters in Accounting and are then eligible to sit for the CPA exam. There’s also another Accounting program here at Smeal that is called Corporate Control and Analysis; it’s a 4 year program that prepares you for the CMA exam and for financial management roles in Corporate Accounting.
I’m leaning toward Corporate Accounting because I’m not fond of all the travelling that is required in Public Accounting. I envision myself in a job where I go to work in the morning and come back at night and only occasionally travel. However, I’ve heard from people in the Accounting profession that the CPA is supreme, and the CMA is not valued as much in the U.S., even though it is recognized worldwide. I’m more intrigued by the CMA as it covers Financial Management, which sounds more interesting to me, while the CPA is more heavily based in Tax and Audit. Should I pursue the CPA track by going for the MAcc program even if I’m not sold by Public Accounting, or should I go down the somewhat riskier but more enjoyable CMA? Also, is there a great difference in salary between someone with a CPA and someone with a CMA who works at a respectable corporation? All input will be greatly appreciated!
My $.02: I would suggest it is too soon to decide CPA vs CMA. I would stay on the CPA path (spend the 5 years) pass the CPA exam and work in public for a few years. Then you can always head to the corporate side and pursue a CMA if you see fit.
Not all public accounting requires travel. It depends on the firm and the client base.
Nothing wrong with the CMA, but you will have much more flexibility if you start with your CPA.
I’d try to talk to someone in career placement and/or the accounting department to see how students with both of those credentials end up. Offhand, I’d say to go for the CPA as it is a more widely known credential.
This is a limited sample size, but I honestly have never met anyone with a CMA but no CPA. I feel like many accountants get the CPA license first and then specialize by pursuing the specialties such as CFE (Certified Fraud Examiner) or CMA as their careers develop to open more options. I never really considered that someone might only seek a CMA right out of college.
One thing I would recommend (in addition to talking to people in career placement) is to try and find an internship or an externship at the kind of company that you would like to work for. You’ll find that it’s pretty easy to get accountants to talk (and talk and talk) about their educational backgrounds and career experiences. You can get a good feel for what the kind of industry you want expects. (Do they want CMAs, CPAs, both, or do they actually just not care? Is there any bias in favor of someone with experience in public accounting?) You can also learn about which companies recruit heavily from your campus and for what and that might help you make a decision. I don’t think there’s anything wrong with pursuing a CMA but more information is always good.
The CPA is much more valuable because it is a professional license issued by the authority of one of the states - not simply a test administered by an association. That is not to say that the CMA doesn’t have value, but as noted above almost every CMA is also a CPA - or foreign equivalent.
I’m a CPA, but have never practiced public accounting. Many of my friends are the same. We all went into internal auditing, corporate accounting, corporate finance or went on directly to law school. In most (but not all) states, the experience requirement can be met by working in public accounting, government or private industry. If you get an accredited masters in accounting, at least one state (MA) will issue you a CPA license (non-attest reporting) without any experience - in case you don’t meet the requirements in your state of residence.
The CPA is just a license. You can get a driver’s license but never own a car, or pass the bar but never work as a lawyer, or get your CPR certificate and never save someone from choking. You don’t need to work in public accounting to earn a CPA (the work experience requirement can be met in the jobs you are considering) either.
Not all public accounting jobs involve traveling either. My tax friends actually have their own offices and parking spaces, for example. They may occasionally visit client sites but they aren’t exactly spending more time on continental flights than at home.
I think you are starting with an erroneous assumption about travel. Not all CPAs have to travel for work. Further, I’m sure there are plenty of industry accountants/CMAs who do have to travel for the jobs.
CPA licenses are granted by the states, so need to look into the rules for the state in which you intend to work. There may be a work experience requirement and you may well be able to fulfill while working in industry.
Lastly, do your best to keep your options open, as you never know what kind of work you well end up gravitating towards. You may find something interesting in a classroom or case study, but then find it less exciting in real life. Forensic accounting (as a random example) could seem less enjoyable once you are sitting in a warehouse in Houston in July with no A/C digging through 400 storage boxes…
The CPA is much more valuable than the CMA. You don’t have to work in public to be a CPA. My state requires you to work for two years under the supervision of another CPA. You could work in an accounting department for a CPA and meet the requirement.
If you are interested in Financial Management, then why not major in Finance? Many people mistake Finance with investment banking, but it is broader than that. Or getting your MBA after your undergrad will help with financial management as well.
Finance at my school is geared more toward IB. If the CPA is worth more, then I think it’s worth staying in school for 5 years and getting the B.S. in Accounting, Masters in Accounting, and then sit for the CPA. I just don’t want to travel most of my life, like my dad does most of the time as an IT consultant.