David McCann, CFO.com | US
January 9, 2009
As someone who has been retired for the last two and one-half years and, at 57, getting ready to get back into the field, the views of these young, would-be accountants, are both refreshing and disappointing at the same time.
It's not surprising that accounting students, finishing up 4 or 5 years of course work, are focused on career prospects, including working hours, pay, benefits, travel and the like.
But, I was disappointed that none of these students seemed to grasp the role of accounting in what has to be described as the historic collaspe of global capitalism.
While these students may think that the current financial crisis is exciting, and are happy that, in spite of it, they have multiple career prospects, they should also understand the fact that critical industries like automobiles, on the brink of collapse, and hundreds of thousands of employees losing jobs, homes, and futures, place accounting, internal and public, at the epicenter of a revival of market-based capitalism.
Because of that, in the midst of their personal career aspirations, it would have been encouraging to hear at least a few of these students talk about the role of mark-to-market accounting in the current credit crisis, Sarbanes-Oxley, the role of fair value accounting in allocating capitial to its most effective uses, and the much-discussed move from prescriptive GAAP to principles-based International Financial Accounting Standards.
The sins of Wall Street Investment banks, unregulated hedge funds, and large commercial banks, were comppounded by controllers, Vice-Presidents of Finance, CFO's, internal and exteranl auditors, the SEC, the Comptroller of the Currency, and the Federal Reserve, which, almost in harmony, failed to sound the alarm when exotic, hard-to-understand financial instruments, overlevaraged balance sheets, and risk-to-rewards ratios got way out of hand.
Because of that massive failure, millions of innocent families are suffering.
Also, the conceptual framework of accounting, auditing, finance, and federal and state regulation, is being re-thought, at a fundamental level.
The fact that not one of these admittedly bright and eager students raised any of these issues, vital to restoration of market-based capitalism, should make all of us, accountant and non-accountant alike, wonder whether the focus of current accounting education is much too narrow.
Posted by Larry Hightower | Jan 22, 2009 12:57 PM ET
Ok, enough of the pushing of the public accounting route to success. Private industry has as much to offer if not more than a spending 2-3 years doing low level public accounting ticking off workpapers. I encourage all new accountants to explore all your options before signing on with the big 4, look to private industry and smaller/regional firms where you may have greater exposure to learning.
Posted by Michael Harbour | Jan 20, 2009 9:48 AM ET
Small public accounting firms require many hours also, however that is how I passed the exam. When I took classes in college such as Intermediate and Governmental Accounting I did not realize I would need to know the text information "off the cuff". I feel lucky that I worked for two separate firms which required extensive knowlege in Intermediate and Governmental Accounting. Because I worked those hours and had exposure to both I not only passed the exam but am better able to apply my education because of that exposure in the field during audit.
Posted by Linda Taft | Jan 13, 2009 6:57 PM ET
This is a great article. It is interesting to see that accounting students are still facing the same dilemma that I encountered when I started my career 6 years ago.
I believe the best kept secret in public accounting is Grant Thornton (GT) and other alternatives to the Big 4. That is where I started my career and it gave me the best of both worlds: work-life balance, great compensation and benefits, exceptional training, international experience with a variety of client industries, and a great network. I worked at GT for the first 5 years of my career and it was the best investment of my time I could have made.
Posted by Joshua Dobbins | Jan 13, 2009 11:40 AM ET
I recently finished my undergraduate degree in accounting at Utah Valley University, and the perspective I have been given is that the Big Four firms basically hire you to finish your education. That is, your first year of employment is an extension of your MAcc or MBA, except you get paid for learning instead of paying to learn.
If anyone is serious about building a meaningful career, they've got to pay their dues...and this is no exception!
Posted by Spencer Anderson | Jan 12, 2009 11:32 AM ET
In response to a comment below about accounting firms being unfair to young accountants. Sure they work you very hard and don't compensate you fairly at first. But what successful career path isn't like this? Look at investment banking. What about medical residents? This is a high price you pay when you're young to hopefully reap the rewards of financial stability and career opportunities when you are older.
Posted by Chris Spruiell | Jan 12, 2009 9:52 AM ET
After that comment, good luck on getting an offer from a Big 4 accounting firm. They dont want people who don't want to work for them.
Posted by Chris Spruiell | Jan 12, 2009 9:49 AM ET
Looking back on my audit experience, it was demanding. And, perhaps there was some exploitation going on ... Years later the fascinating people, their business models and important lessons are what come to mind.
Posted by Michael Gerlicher | Jan 10, 2009 8:47 PM ET
The Big Four and other public accounting firms exploit young accountant labour. Use and abuse is the motto I heard when there.
They pay little, don't pay overtime, and work individuals inhumane hours. Hardly worth the effort if there is no payoff and it wreaks havoc with health of the individual.
Posted by David Newman | Jan 10, 2009 10:17 AM ET
It depends on what kind of experience you are going to get especially when you are getting big firms audited by well known audit firms that are suspect in their accounts and books from India to the USA. So what kind of experience are you talking about?
Posted by Jon Tay | Jan 9, 2009 11:51 PM ET
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