It’s not at all as competitive as people suggest. The interview process is meant to weed out the socially awkward. So I guess considering the field can contain a ton of socially awkward accounting students, you can consider it competitive, but the difference between a 3.2 GPA or a 3.9 GPA isn’t going to matter a whole lot. Additionally, many these state universities are so deep in the pockets of the Big 4 that they mold their minimum BS Accounting standards around what the Big 4 want. Chances are, if you’re a matriculated accounting student, you meet minimum Big 4 academic standards. The idea that getting a gig in Big 4 audit is uber-competitive is dated. It used to be that in order to get your CPA you were required to have at least 1 year public audit experience, but that is no longer the case. As such, many students are going straight to the private sector. Also, the introduction of the 150 hour rule further thins out the field for the rest.
Besides that, I never said anything about going on to make millions. I merely suggested that if you go to the Big 4 - which I still contend isn’t difficult for an accounting student to do - you’ll have tons of opportunities (especially with your CPA), many of which won’t involve entering anything into the GL. If you find that you don’t have these opportunities, you’re not trying hard enough.
CPA…Waaay easier. Public accounting firms are basically just looking for bodies as turnover continues to track about 2-3 years. The role of accountants in private industry is becoming quite diverse with the role of “GL accountant” or “bookkeeper” being reserved for high school diplomas and two year degree employees. Talented CPAs (not all are created equal) are utilized in the corporate world to analyze complex transactions, investment decisions, and strategy, employing many of the skills and calculations present throughout the CFA curiculum.
Not all accounting jobs are created equal, but in many cases the lines between accounting and finance are becoming blurred, with accounting becoming increasingly more exciting (using the term exciting pretty loosely).
@corcomb - I still disagree with you. Big 4 firms have a “picture” in their mind of what they want to hire. And their “picture” is somebody who’s 23, did a five year accounting program, was in Beta Alpha Psi (the accounting fraternity), did an internship, and is now CPA ready.
I’m 33, do NOT have a degree in accounting, did NOT join Beta Alpha Psi, and I’m married with a kid and another one on the way. I spent five years in the military and have a BS in Spanish and an MBA with a concentration in finance. Big 4 does not want me. They do not even want to look at me. They told me so when they rejected my request for an interview.
@Bbeckett - I agree with what you said. In my experience, most of the people doing the decision making in industry are accountants–not finance guys. Most CFO’s are former controllers, and almost all controllers spent a significant amount of time as an auditor.
However, while it’s easy to compare “industry CPA’s” to “industry finance people”, it’s hard to compare CPA’s to “investment finance people”. Journal entries and financial statements are a long way away from portfolio betas and duration/convexities.
It seems like there are a lot of people trying to enter the financial industry. I still stand by my original post. The consensus on this forum (from the posters that seem trustworthy) seems to be that getting your CFA charter won’t get you a job, but it might help you keep a job or get a _ better _ job. But the CPA will help you land your first job, and probably almost immediately.
Granted, you might not get into “Transaction Advisory” at a “Big 4” firm, but you can certainly get into a tax practice or local audit practice somewhere. This is certainly better (IMHO) than thrashing around in a giant pool of portfolio manager wannabees with no experience.
If you don’t have any experience in finance, then getting the CFA Charter is probably less likely to land you a job than if you get the CPA license. Granted, you have to have a certain educational background to do the CPA thing, but it still might be easier than getting a CFA charter–especially if you’re still young or still in school.
EDIT - I realize that nobody on this forum will like to hear this, because accounting is “boring” while finance is “sexy”. And accountants make a pittance while a good BSD can make hundreds of trillions of dollars. I’ve heard it all. Doesn’t change the facts, and certainly won’t change my opinion. (Disclaimer - I’m also a CPA.)
I actually find Accounting a lot more interesting once i started working…
Here’s the thing, every company in every industry has accounting functions. And i think a lot of people can realize their dreams and work in the industry they desire by working as an accountant. I know plenty of people who does accounting for fashion appearal, game design, architecture firm, marketing agency, etc. And they are definitely not the typical boring and conservative Accountants protray on TV.
Now, finance is much more limited. You don’t have the luxury to work in many different industries and the people you work with are unlikely to be as diverse as Accountants. Obviously if you enjoy only the financial market you may find finance very exciting. However, not every finance positions are THAT MUCH more interesting (mine included) and I don’t what i do is substantially superior or different from Accounting… it’s all excel spreadsheets and numbers at the end of the day.
Agree with most parts that you all have mentioned. I’m a ACCA/CPA with abt 8 years of exp; started young after high sch and military service from a small role as a GL accountant/book-keeper while doing my acctg studies. Did a stint in Big 4 audit post-qualification. Now I’ve moved on to a new role doing corporate strategy-related work and some FP&A. Accounting roles can be really dynamic and interesting as you progress and move laterally into industry from a Big 4. You can get really involved in the businesses of your company, for certain roles.
Big 4 is not very difficult to get in. Once you hit the hiring season when many auditors are leaving for other jobs and you have accounting background and similar experiences and you are of also of a certain age range (typically not older than 28 yrs ++ for SIngaporean males), you have a fair chance to get in.
I’m not sure I agree with the point you’re making. Working on the books for a fashion company is a far cry from designing or whatever else fashion companies do. You might be in the same building but unlikely to see the day to day operations. Every accountant I’ve ever met, none of them has ever said they loved their jobs. And after I tell them what I do, the conversation tends to turn into an information interview of how I broke into finance. Of course, I bet there are some cultural aspects of your view that a westerner may have difficulty understanding. This is the same issue I had with a Japanese girl from Nagoya I dated for a couple years.
I highly disagree in regards to the finance jobs that people on this board are concerned with. I’m not sure what you do in your finance role, but I use much higher levels of cognitive ability than an accountant. I think I would rather watch paint dry than do accounting.
However, I agree with Mr. Greenman, accounting is a much safer bet to get a job and the CFA charter will not help you get into the industry. The finance industry is contracting at an alarming rate and experience is the end all be all.
You can’t really “disagree” with my personal experience and opinions from the people i know, can you?
Just because I am not athletic and do not find sports interesting, I can’t say I “disagre” with people who take interest in pursuing a career as professional athletes.
Greenman is right on with his posts. My experiences have been similar. I am a CPA (tax side) and started that path first before moving to investments. To make it in investments, you have to be in the right place at the right time and be ready IF an opportunity ever arises. BIG IF.
Let us say that my dream is to be a professional snowboarder. I don’t think working as an accountant for a snowboarding company constitutes me realizing my dream. However, as I’ve said before, there may be a cultural aspect here that I don’t understand.
It’s not really a cultural aspect, it’s just depends on your perspectives and expectations.
Obviously not everyone gets to do what they love to do most (if i’m 5 foot 4 and want to be a professional basketball player…), so for those people they just have to settle for the next best thing (satisficing). Mind you, a lot of managerial positions are accountants! So yes, you may never be a hands-on top designer cutting patterns and sewing fabrics everyday, but you may be able to be a controller still and oversee the product development cycle from sourcing to production to distribution - that doesn’t sound such a bad alternative career for most people!?
Maybe… but 90% of professional athletes retire from their careers early, so they have to settle for something else and who knows, perhaps they will be bored of their sports eventually as well??
