I’ve got a kid who will be getting a bachelor’s in accounting next year. We are hearing a variety of things about what you need to get going in this field. I know it used to be that a bachelor’s degree in accounting was pretty all you needed to land an entry-level job and make a living, and an MS, MBA, &/or CPA was icing on the cake. But now we are hearing tales of how you might need a master’s or CPA to even have your resume looked at. Not looking for a master-of-the-universe job in NYC…just a job anywhere in the country that involves accounting & has some potential for at least some advancement. Anybody have some advice?
I have a kid who just finished first year of their bachelor’s. They’re already starting to worry about the same thing, so I’m interested in what people in the field have to say.
Hi folks. My husband and I are both CPAs. I am VERY biased. so here goes.
Almost every state has a 5 year requirement to be a CPA. To be clear you don’t have to have a masters but you DO have to have 150 credits. This has been the case in my state since I graduated in 1984 so it’s not a new thing.
The best career path (here is my bias) is to go into PUBLIC ACCOUNTING at a public accounting firm. The reason for this is you see all types of businesses and all types of scenarios. The kids work hard, get paid very well and they earn about 2 years experience for every year they work, so when they come out they will get jobs well ahead of their classmates. For example, if you spend 5 or 6 years in public accounting, you could come out as a controller or CFO. If youwere to leave college and go right into industry (a job at a company in accounting not an accounting firm) it will take you twice as long to earn that position.
These are all generalizations, but I have 30 plus years of experience and I can tell you this is the way it works in most cases.
If your child has decent grades and can do well in an interview, here is the BEST PATH… After a 4 year degree, they do an internship at an accounting firm for one semester. they are paid very well for this ( around 20 bucks an hour). They return to school for one year usually with a job offer in hand already if they did a decent job at the internship. Most firms will extend offers at the end of the internship so your kid goes back to school for that year knowing that he/she has a job, usually earning 50k or so.
it’s worth the extra year. If your son/daughter is smart, and motivated DO NOT fall prey to the temptation of “just getting a job in accounting”.
Most people I know who started in public accounting, if they can make it at least two years, do very very very well. Many make more than doctors or lawyers who went to school way longer and spent way more money…
Can you tell I’m passionate about this?
Hope this helps. Accounting is a great profession and we see it as the "language of business’. Meaning that going into accounting means down the road you can do ANYTHING related to business.
A general ledger accountant in industry as opposed to public accounting? You can get a 4 year degree and get a job pretty easily. Advancement beyond a manager level role (into a director position)? Depends on entirely on the company but you’ll likely need the CPA which requires 150 hours of college (so most get a Masters but doesn’t have to be) and take the exam. He can get the entry level accounting job at an employer who will pay some money toward grad school and maybe even a study course. The exam is passable even though the majority pass it in multiple sittings instead of just one. I think it is easier to do it before you have a job and family to take care of and I’d advise that. Once you have it, it is pretty easy to keep and it makes job searches far easier. Some of the best accountants I have worked with don’t have it but they wish they did because they see that they are just as good as everyone else and the only difference is the piece of paper- kind of the way a degree used to be.
I know nothing about accounting, so please excuse me. But what is public accounting?..is that like what they call “The Big 4”?
Absolute agree with @rosa0463 and @gettingschooled. DH is a CPA and if you are doing accounting, get the certification as your career golden ticket. The public accounting firms audit financial statements and provide a letter confirming that the numbers are correct. All large companies and not for profits and many good sized local companies need audited financial statements for investors and bank loan requirements. The firms also have consulting arms. Both sections provide an excellent understanding of business.
Yes, your student should get the certification sooner rather than later, before life is a distraction. DH graduated before the 5th year requirement, went to work for one of the Big 6-8 ( I forget what it was then) in oil and gas audit. Great pay, travel, paid training. He self studied exam and passed 3 of 4 in one sitting. He has a long career and the CPA has been essential for interviews, promotions and opportunities.
Private accounting would be all the in-house accounting staff businesses and organizations have.
You need 150 hours to be CPA in a lot of states and undergrad is usually only 120, so a lot of people get a masters of accounting for the last 30 hours.
Another CPA here and my S recently became a CPA. Here are a few comments:
– There is no 5 years of education rule to become a CPA but there is a 150 credit rule. Most bachelors programs are about 120 credits so many do go on for a one year MS in Accounting to satisfy the remaking credits. My S went this route. It is more and more popular for incoming accountants to have a MS degree, but it is not required. My S knows people who have used AP credits in conjunction with taking some summer classes/overloading their schedule to graduate in 4 or 4 and a half years with the required 150 credits. At lleast as of now, the big public accounting firms will take people with the 150 credits regardless of if they hold a Masters degree or not.
-I would agree with the prevailing opinion that the best route is to get a CPA and get public accounting experience, preferably with a large firm (Big 4 being the best option if possible). The way the rules are not set up it is also possible to get experience towards the CPA working in private accounting doing financial accounting work and reporting to a CPA (check the rules of your state to confirm).
–The CPA is a lifetime credential in the field. People without CPAs will be competing with CPAs for promotions etc. throughout the course of their career and can find themselves to often be at a disadvantage.
–FWIW the CPA exam itself is given differently from the way it was described in post #6 (and from when I took it way back in the stone ages when calculators weren’t allowed). CPA candidates now self-schedule and take one part at a time at an approved testing center. It is still a rigorous exam, but one that can be passed when the time and effort is put into studying.
–Agree that accounting can be a great and rewarding career. It can be a springboard to many different types of jobs (ex. I eventually moved into municipal bond finance) and many different types of companies. But it is not an easy road and there is a great deal of work and effort required in order to put oneself in the best long term position with the most career options.
IMO, it is definitely worth going for the extra hours and sit for the CPA exam. It will serve him well over many years. One of the best Controllers that I ever had did not have his CPA, and it hurt his career trajectory.
Whether he wants the Master’s is up to him, but most kids just go on and get that too, since they have to do the extra classwork anyway.
Agree on the great experience of Public Accounting. A couple of years at the Big Four ALWAYS looks good a resume.
@bouders I’m not an accountant, however my son is a rising junior in Accountancy and Finance. I would tell your “kid” to join a business frat and network with older Accy students. During the sophomore school year, apply to summer leadership conferences. My son attended two of them this summer and both companies are already trying to get commitments from these students for next summer’s internship positions. Start early.
Definitely get the CPA. I have spent my entire accounting career in private industry and while it is not required for entry level jobs it becomes an important credential as you move up. The test requires a lot of studying and I strongly recommend doing it sooner rather than later. I know too many people who waited and then found themselves working and raising a family and not having the time for CPA review.
Thanks for all the great advice. One more question: would an M.S. in accounting from a reputable university that was done online be ok, or would that be looked down upon?
My S went to a university for his MS. The biggest advantages for him were that: 1) he went to a challenging program where he learned a ton and met more friends/contacts in his field; and 2) he interviewed for a full time job using the career placement office of the university and ended up with multiple offers.
You have a long time before that choice has to be made. If you child doesn’t have a job lined up I’d opt for a university to take advantage of the career placement, if your child has a job lined up through a prior internship he/she can ask the future employer if an online MS is OK.
FWIW my S did take a CPA review course (different from the MS) online and was happy with it.
I agree with all the other advice given here that it is best to get your CPA. I am actually an accountant that does not have a CPA. I spent almost 30 years working for the same government contractor and moved up well even though I didn’t have a CPA. I think it would be much more difficult today than what I experienced thus I always tell young accountants that I know to get your CPA.
I work for one of the big 4 - some kids have their Masters in Accounting, some don’t, but getting that last years credit is really hard when working for a big firm. Many of the students coming in new are studying for the CPA
I agree with the others and @TQfromtheU - I work for one of the big 4 as well
When my S was interviewing for a full time job with the Big 4 during his MS year the firms would only interview people who were on track to have 150 credits completed by the end of the school year (for a position starting in the summer or early fall). People hired for internships must be on track to complete their 150 credit hours over the next year. The top firms don’t want people going to school to finish the required credit hours while they are working – quite simply there isn’t enough time to do both things well.
FWIW my S starting studying for and taking the CPA exam during the second semester of his MS program (his school recommended students front load their schedule for this reason) and had all parts passed before he started work in Sept. Admittedly it wasn’t the most exciting summer, but it was wonderful to have the exam done before he started work.
I so appreciate all the advice and information here. My son is entering his sophomore year as an accounting major and this is all new to us. He is in a program which will have him complete the 150 hours within the four years, with a combination of AP credits, summer class, summer internships, and taking full course loads. It’s all very intimidating!
It may be too late for the kid who will be getting a bachelors degree next year, unless he delays his graduation if he can afford it. Securing a summer intership with a Big Four is a step toward a job offer with the Big Four.
For new aspiring freshman, to be CPA, start early, i.e., in the sophomore year or perhaps even in the junior year (if planning on the additional 30 semester or 45 quarter units beyond the BS/BA degree, to meet the CPA requirements). As @88jm19 mentioned in post #19, get accepted into a summer leadership program sponsored by the Big Four. This can almost automatically lead into a summer intership for the following summer and then lead to a job offer upon graduation. A subsequent summer intership with a Big Four is possible without participation in the summer leadership program. Many Big Four summer interns are selected from the previous summer’s leadership program.