Everything you wanted to know or should know about accounting

<p>what i dont understand is why Chartered Accountants (CAs) in Canada and abroad are presented just as high as doctors/lawyers and they make enormous bucks. Where as CPAs in the US on average don’t make nearly as much as the accountants in Canada. It’s crazy, up there a CA can easily pull in 200k+ after 7-10 years, whereas here I would guess most CPAs would never see this figure… Taxguy, could you please elaborate on this issue.</p>

<p>And apparently the CPA and CA thought about a merge, but the CA executives decided not to since they want to keep the “royal tradition” alive. lol plus they state that the CA exam is soooo much more difficult. lol seriously?</p>

<p>could a CPA in the US, if decided to move to Canada, just transfer his license to a CA designation because he passed a similar exam and received the 150 credits for both licenses? rumor has it, the CA exam is much tougher, “if that’s even possble.” </p>

<p>reason being, i love toronto and vancouver, and i would love to live in canada one day. however, i do not want to spend the rest of my life studying for the CA exam when i already have a cpa. therefore, transferring licenses would be awesome.</p>

<p>thank you!</p>

<p>People overthink this stuff way too much. Do whatever you want.</p>

<p>Yournamehere27, I can’t speak for Canada. Maybe they regulate the CA more than the US and thus have less of them. However, I do know that if you are in accounting for 10+ years here in the US and you make partner, you will make 200K+ per year. I would bet that not every accountant makes partner in Canada,which is the same as the US.</p>

<p>Taxguy, first of all thank your help, and I have one more question. So say I start at a large public accounting firm, which it’s very, very difficult to move up to partner. So is the normal process to downgrade to a middle or small size firm practically guaranteeing a partnership if one does well? Say if you can’t move up in those firms… Do you keep firm hopping until one reaches that certain “fit” to move up in? This is the impression I’m getting.</p>

<p>thanks again</p>

<p>Yournamehere, I can’t answer your question since I don’t work for an accounting firm anymore. Generally, it isn’t as impossible to make partner as you seem to think. Yes, it is difficult, and you need to have certain skills. However, it isn’t impossible.
If you are very competant, you can still stay there as a “director” and make a good living at some firms. I don’t know enough about this to advise you competantly. Maybe someone else on these boards can do that.</p>

<p>There are many big 4 former folks who go to mid size firms and work their way to partner. NO ONE will guarantee you a partership because you were with a big firm UNLESS you bring in a lot of client billings. You will otherwise have to show them what you can do in order to earn your partnership status.</p>

<p>YOurnamehere, I have posted what it takes to become a partner in post 507. Here is a repeat of that post:</p>

<p>Let me be very clear about something. Yes, accounting is one of the better paying careers out of college. Yes, it is respected. Yes, it is one of the best careers for getting a job.</p>

<p>HOWEVER, you have to like it and be good at it if you want to keep that job. This means:</p>

<ol>
<li>You have the ability to pay attention to detail for long periods of time</li>
<li>You have a very strong work ethic. This means that you can work 8-9 hours a day on projects, having only a few breaks.</li>
<li>You have strong analytical, problem solving ability.</li>
<li>You have common sense</li>
<li>You have a reasonable degree of people skills</li>
<li>You are a decent writer.You don’t need to be Hemmingway or even have the skills of an English major, but you do need to write clear reports.</li>
<li>In college, learning disablied kids can get through with accomodations. They might get extra time for work, tutors, note takers etc. Don’t expect any accounting firms to make accomodations for you in this regard. You will be expected to work hard, quickly and correctly. No excuses will be accepted.</li>
<li>Some of the smaller firms require their “would be partners” to bring in business.In fact, for one of my son’s firms that he is with, there was a factor in the evalutation about new clients brought in by the employee.</li>
</ol>

<p>Thus, at some point in your career, you may have to have strong networking skills. This isn’t true for all firms,but I have seen it in the past with some firms.</p>

<p>Accounting does take a special kind of person to succeed. If the subject matter or work isn’t for you, don’t go into it!</p>

<p>I love this thread! Very helpful</p>

<p>I actually have a question which you may or may not have covered before, but in the big 4, are you able to have a life? or do they require you to work 10 hours days and a lot of weekends?..and also, would be an accountant for the federal gov. be a wise career move? Thanks for your help</p>

<p>MaverickJr. I haven’t worked for a big national accounting firm for quite a while;thus, someone else should answer your question.</p>

<p>As for government work, it is less hours and a LOT more stable. You will have little chance of losing your job in government unless you really screw up. National firms are reknown for laying off folks and firing those who won’t or can’t make partner.</p>

<p>Hey taxguy,</p>

<p>I had a quick question because all my accounting / business professors have been talking about it a lot. Once we get over this economic crises (and hopefully, it will come to an end soon), how do you think the United States’s commitment to switching to IFRS will affect those students receiving an accounting major within the next five years? I mean, I know that the Big 4 and other accounting firms will be reeducating their current employees about the nuances of IFRS compared to FASB regulations, but how do you think this will play out in regards to the job market for recent graduates?</p>

<p>Thanks</p>

<p>BC2011, My crystal ball is broken. I really can’t tell you how this will all play out. There will be many continuing education courses that will cover the new accounting rules that should adequately prepare professionals for the changes.</p>

<p>BC2011,
There will be ample opportunity for you to be exposed to IFRS before US companies fully transition to that regulatory model. Textbook authors are already working on integrating this material and the transition is one of the hot topics at professional meetings for accounting academics. Sir David Tweedie, the IASB chairman, is scheduled to be one of the plenary speakers at the American Accounting Association’s annual meeting this year. AAA is the premier organization for accounting academics. </p>

<p>Taxguy is correct - what you specifically need in your future career is likely to be provided through CPE courses or in house training. My state society recently sent out a list of the five hottest topics for training from a neighboring state and IFRS was #2 on the list.</p>

<p>I am seriously considering double majoring in accounting and international business. I want to work in accounting possibly in another country for an american corporation. I plan on getting my CPA and probably via a masters in accounting after my double majors. Are there any advantages to the double major. It will take about one year longer to go this route. Will the international business degree stand out to employers and help me get a better job? What do you guys think?</p>

<p>international business sounds like a joke.</p>

<p>you sound like a joke, go play in traffic little dawgie.</p>

<p>Naw I’d rather study international business to prep myself to record journal entries at an american corporation at another country. I’m sure it’s going to teach me IFRS.</p>

<p>“I actually have a question which you may or may not have covered before, but in the big 4, are you able to have a life? or do they require you to work 10 hours days and a lot of weekends?”</p>

<p>You’re required to have a certain amount of “billable hours” (hours you can charge a client)’ a week. I was told it’s usually 40 but spikes during the busy season. After interning with Deloitte Tax for only three days, my opinion is that if you are serious about moving up the ladder (lattice?) then yeah expect to work long hours and on weekends during busy season/before deadlines. They tell you straight up so you know what you’re getting yourself into. Deadlines come first…that’s just the nature of the client service business. But hey that’s life. I’m sure I’ll have more insight as the summer progresses.</p>

<p>Thanks for all the great info so far!</p>

<p>I was wondering if you possibly knew of a resource that described all the different areas of accounting and which would be best for you based on your skills and interests. I would really like to learn about all the different areas!</p>

<p>The school I’m attending isn’t AACSB accrediated, but it is by the International Assembly for Collegiate Business Education (IACBE). I read that you think that in the future, everyone is going to want AACBS graduates. Do you think this could be a problem for me later in life or would I sort of be grandfathered in?</p>

<p>I don’t know if you have answered this yet, but would there really be any benefit for me attending my school’s MBA program, besides the fact that I’d have enough credits for the CPA exam?</p>

<p>Taxguy, I believe your information on “needing” 150 units to take the CPA is wrong. In california there are 2 pathways to take the exam:</p>

<p>Pathway 1</p>

<p>Designed for individuals who will practice only in California and requires:</p>

<ul>
<li> A bachelor’s degree; </li>
<li> 24 semester units in accounting-related subjects; </li>
<li> 24 semester units in business-related subjects (accounting courses beyond the 24 required units may apply toward the business units); </li>
<li> Passing the Uniform CPA Exam; </li>
<li> Two years of general accounting experience supervised by a CPA with an active license; and </li>
<li> Passing an ethics course.</li>
</ul>

<p>Pathway 2</p>

<p>If you are licensed under this pathway, the majority of other states will recognize your license. If you think that someday you might want to practice in another state, Pathway 2 may provide you the professional mobility you desire. Requirements:</p>

<ul>
<li> A bachelor’s degree; </li>
<li> 24 semester units in accounting-related subjects; </li>
<li> 24 semester units in business-related subjects; </li>
<li> 150 semester units (or 225 quarter units) of education; </li>
<li> Passing the Uniform CPA Exam; </li>
<li> One year of general accounting experience supervised by a CPA with an active license; and </li>
<li> Passing an ethics course.</li>
</ul>

<p>…you only need 150 units for pathway 2.</p>

<p>GlennRyan, I don’t know about what goes on in California. However, for most states that I have seen, folks will need 150 credits to become CPA. Maybe California is different.As I noted in my original post, all students should check with their respective state society for the requirements to sit for the CPA and to become a CPA. Each state does vary a bit, although the 150 credit requirement seems to be a widespread requirement in most states.</p>

<p>OKgirl, see my post numbered 536 among other previous posts that address your question.</p>