To MAcc or not to MAcc: Need Advice

Graduate School Business School - MBA
1

<p>The MAcc programs I am looking into are ones that are made for Non-Accounting majors/Liberal Arts majors. I'm looking into these programs because I have an Economics degree from a middle of the road state university, and thus far, it hasn't done much. My problem is the cost of the programs. I am already $37k in debt and I've seen these programs range from $30,000 (local private university) to $55,000 (UTexas). Obviously going $90k in debt for a Masters in Accounting, only to be making MAYBE $50,000 when I graduate isn't the brightest idea.</p>

<p>I am trying to figure out what my best route should be. I have my widowed mother saying to do the Masters and go into debt up to my eyeballs. She says, "I just might have to do it." Using a student loan calculator and putting in a projected salary of $50,000 (I'd like to enter the Big 4, ideally), the most debt that is recommended is $48k.</p>

<p>I'm not even sure that if I were to get into one of the cheaper programs at $30k a year, if those would be worth going that far into debt. The local private university would possibly give me an opportunity for graduate assistantship, which could cut my costs of the program in half. The only problem is, I have talked to a couple friends who are at the school and they say the Big 4 do not hire very deep into the class, and most of them are struggling for jobs/interviews.</p>

<p>I'm currently working a part-time job, and can't really save up as much as I thought I'd be able to by next year when the MAcc programs start. I could possibly pay for housing, that's about it. I'm also studying my butt off for the GMAT, hoping I knock it out of the park. My GPA was only 3.5, so I imagine I need a high GMAT to be competitive for most programs.</p>

<p>I'd appreciate some good advice. Obviously my mom's advice isn't the best, and I'm not sure who else to ask. Thank you.</p>

2

<p>If your goal is to work at a big 4 then you should take the steps that you need to go there. If you could get into Texas then I would recommend you go there as it is the top accounting program. Sure you’ll be making 50k but your salary will increase, if you are Texas good, and shouldn’t be a problem paying it off in a few years. </p>

<p>I can sort of relate to your situation. I went to a state school and accumulated some debt. My goals are CPA and possibly MBA. For the CPA, I am paying good money–I work full time-- for a reputable certificate program. If I find myself doing well at advanced accounting then I may pay the cash to go MAcc at SC, Notre Dame, or A&M. If not then will just go from certificate in accounting to management/MBA. </p>

<p>If you are GOOD then spend the money and go for it. If not then don’t.</p>

3

<p>Thank you for the response.</p>

<p>Another option is to go for a second Bachelor’s at a local state university. It would be much cheaper and I could probably work to help pay for it. The only problem is it would most likely take 2 years to complete.</p>

4

<p>I’m also looking into programs that encourage and help you find internships during the program. I believe UTexas program encourages internships, and Rutgers has an accounting program that offers internships. The thing about Rutgers program is they tack on an MBA, which I have no need for right now and it also raises the price of the program out of my range.</p>

<p>The local (cheaper) school that offers the Masters in Accounting does not mention anything about internships during the length of the program.</p>

5

<p>If the local program is much cheaper and AACSB accredited it might be the best route for you. If you have your heart set on the big 4 then I would check their placement rates prior to enrolling, but if you go to an AACSB accredited school and finish with a high GPA you have a decent chance at the big 4 even if you don’t go to a highly-ranked school like Texas.</p>

6

<p>Thanks. It is an AACSB accredited business school, but not in Accounting.</p>

7

<p>Accounting AACSB accreditation isn’t necessary, so long as business school is accredited. Good luck! :)</p>

8

<p>I was in your position back in 2002. I was a business major at a reputable undergraduate school. You don’t even have to have a business undergrad major to apply. All you need is some undergrad business classes and a GMAT score. Preferably, your GPA should be higher than a 3.2. I wanted to get my CPA and work at a Big 4. I thought I would work a couple of years and then go to a top flight MBA school. </p>

<p>The schools I looked at were: Illinois- Champaign, Notre Dame, USC, UT-Austin, University of Washington, University of Arizona, BYU and ASU. I realized that I wanted to go to a school that would be recruited by the Big 4. I did enough research and saw that a handful are recruited nationally; that is, the Big 4 will come to that school and if they like you, you have the ability to decide what city you wanted to go to (of course, there had to be availability in that start group for that office). For example, UT-Austin is a school that is highly ranked. I had a friend that went there for their MAcc program, and was recruited by Deloitte and PwC. She wanted to go to Chicago, and both firms accommodated. If you went to Cal St. Fullerton’s MAcc, it would be a bit harder to pull that off (not saying impossible). Other schools (such as University of AZ, ASU, Notre Dame) are a little more regionally based. Since most of the Big 4s are in nearly every major city, it really comes down to where you want to work. I knew the 1st year salary at any of the Big 4 was pretty comparable. You might have a $5-$7K difference between a 1st YR accountant in NY and AZ. However, with cost of living, I knew I would be broke. When I started at one of the Big 4 Firms in Phoenix, I was making $2K less than my friend who was working for the same firm in LA. But, my dollar went A LOT further than his. </p>

<p>For me, it made more sense to go to Arizona or Texas or somewhere where cost of living was less than CA and AZ. In addition, going out of state to University of AZ or ASU was actually cheaper than going to USC. After much thought, I decided to go to University of Arizona and attend the MAcc Program. I thought about ASU, but at the time U of A’s program was a little better and I just liked the teachers I spoke to. To this day, the best teacher I have ever had was at the U of A. (intermediaet accounting) She has since left though. </p>

<p>I have friends who went to USC, and spent twice as much as me. But, after school, we were all in the same place. I worked in Phoenix audit practice for 4 years, and then parlayed that into working at the firm’s Capital Market’s Consulting group where I was consulting on technical accounting matters (hedges, business combinations, transfers of financial assets, etc.). </p>

<p>I thought about applying for MBA, but realized work experience would trump any MBA. I already had a business undergrad, a Masters in Accounting, and a CPA. I couldn’t justify spending $80K on a MBA or going part-time for my MBA. Instead, I left the Big 4 firm and joined one of the largest companies in the world in their corporate transactions group. I have been here for more than a year and have enjoyed every bit of it. With my current salary, I couldn’t justify leaving for a MBA for 2 years as I would probably make less. </p>

<p>So, in short, going the MAcc route can be very rewarding. It is a departure from the traditional MBA, but it can help you get where you want.</p>

9

<p>Excellent post. You really answered a lot for me yucko, thanks. Right now, I’m trying to find the cheapest program that will give me the greatest prospects. </p>

<p>I only have an interest in an MBA if I find a decent job now, and can translate it to good experience that would get me into a good MBA program somewhere down the road. I like this route because I would be able to pay down my debt before going back to school. I’m afraid of going right into a MAcc program and accumulating even more debt to go alongside my 35k from undergrad.</p>

10

<p>Hi Yucko,
I was wondering, what advantages can one gain from getting a MAcc versus going into a Big 4 or midsize accounting firm straight out of undergrad?</p>