Dreaded Finance vs Accounting question

Accounting is a specialized skillset which is why the Big 4 have a monopoly on the industry, and also why if she doesn’t land a Big 4 job in accounting, her opportunities elsewhere will be much less valuable on paper. With finance there are many more tiers of firms and many different divisions that she can work within (merchant banking, securities, research, banking, portfolio/investment management, etc.).

I also think Finance offers more diverse opportunities, but the question is whether there are enough job openings in finance as there is in accounting?

I also think finance offers more diverse opportunities. However, if your friend likes accounting and does well, 3.2 or above, s/he can probably get a good job that pays well. Some big regional firms also provide good opportunities.

For investment banking, the school you attended seems to be more important than your major. This is even for entry level. Although, to move up in certain areas, a top school MBA certainly is required.

One of D1’s closest friends ( she is actually traveling with her in Asia right now. I think they arrived in Cambodia from Hong Kong today) graduated from Cornell into investment banking. She went from IB into something else (asset mgmt. or hedge fund??) She will be starting her MBA at Harvard this fall. She will have her pick of jobs I am sure. Plus she is fluent in Chinese as well as English.

D1, on the other hand, as a trader does not need an MBA to move up. Just success in her job.

@morrismm Do long did your daughter’s friend work before going back for to school for her MBA?

Hi. I have a Master of Accounting (MAC) degree - 1 year program from UNC. 95% of my graduating class had jobs by November prior to graduation, with start dates the following September. I never had trouble finding a job, but it isn’t just the degree. I also have 3 years of Big Four public accounting experience and my CPA. You need all 3 of those things to be marketable. I do not make as much as those with their MBA. Having a degree in Bio will not hurt him/her at all in a MAC program. We had people with all types of degrees coming in, including a French major. I am not familiar with the Master of Finance degree, so I cannot comment on that. Good luck to your friend.

@chb088 Thanks for your input. Did you have finance friends when you were in business school? Did they have any trouble finding jobs? Are you planning on getting your MBA or MAC/ CPA is where you’re gonna call it a quit?

I am not planning on going any further with my education. I have a bachelor’s in Economics, a Master of Accounting, a CPA and 20 years of work experience now under my belt. I make low six figures and am happily raising 2 teens and preparing them for college. UNC only had a 12 month MAC program and a 2 year MBA program when I was there. My roommate was an MBA student. She easily makes more money than I do and had equal success finding jobs.

@chb088 Do you see any specific advantage of having an MBA compared to having a MAC? One of the reasons my friend like MSF/MAC is due to the shorter length of the programs, but I wonder how the placement goes. For majority of top 50 MBA programs I’ve seen placement in the 90%+ range.

dhman - As I said, I think an MBA with a finance concentration is more flexible than a MSF. And the work experience requirement depends on the school. But regardless of the requirement of the school, I think work experience is essential.

Attending a good business graduate school w/o work experience is like playing for a D1 athletes school w/o playing in HS.

I think that both Boston U and Northeastern have highly respected and ranked B Schools.

Well, my MBA roommate makes more money than I do, but we have had equal success finding jobs. UNC’s placement rate for both MAC and MBA is over 95%. I do not know what placement rates are for other schools.

Placement for both MBA and MAC from UNC is over 95%. Yes MAC program is shorter. But MBA’s do have higher earning potential

Regarding a career in Finance vs. Accounting:

Yes, Finance jobs tend to pay more, but you tend to work longer hours for that pay.

Accounting is more likely to be a 40-hour work week, providing a much better work-life balance. Most accountants are paid enough to become relatively comfortable – not rich by any means, but able to pay bills, mortgage, go on vacation now and then, etc. So – an accountant probably makes less than the Finance person, but he or she probably has more time to enjoy the fruits of that labor.