Tuesday, March 28, 2006

Accounting Careers

A career in accounting can take many different forms. Starting from public accounting to practice in business and industry, government, non-profit or education. To start a career as an accountant in any of these fields one first needs to attain the skills and training required of an accountant.

There are different ways to acquire the skills and knowledge of an accountant. Theoretically, one could simply get a job functioning as an accountant without any experience or training and learn on the job. However, in the current, highly-competitive job market, that is not the best way to start a career in accounting. When one is armed with the knowledge and skills expected of an accountant, the door to finding a job working as an accountant is easier to open. The first question one must ask when beginning a career as an accountant is whether or not to become a Certified Public Accountant (CPA). Becoming a CPA requires meeting the standards set by the state in which one chooses to practice, including completion of a required number of hours of education and passing the CPA examination. Due to the strict standards set by the state accounting boards, being a CPA is not the right choice for everyone. Becoming a CPA is not required to work as an accountant. There are many job and career opportunities open to individuals who decide that being certified is not the right choice for them. For example, at http://www.ratedetective.com.au/insurance/life-insurance/quotes.

If you decide that gaining a CPA certification is not the route for you, it is still important to develop the skills, attain the knowledge and develop the competencies required to be a successful accountant. The American Institute of Certified Public Accountants (the 'AICPA') has developed a list of competencies and skills it considers essential to being an accountant. Acquiring these skills and competencies is a good starting point for anybody looking to become an accountant, even though one does not intend to become certified. The AICPA publishes its comprehensive list of what is considers to be the skills/competencies necessary to be a successful CPA on its website. Many colleges and universities offer undergraduate degrees in accounting that will provide students with these skills and competencies. Both coursework and extracurricular activities can help an individual become competent in the areas necessary to become a successful accountant.

A CPA designation is almost universally required for a career in the world of public accounting. To qualify for certification as a CPA, generally, one must complete a program of study in accounting at a college/university of 150 semester hours, pass the Uniform CPA examination which is developed and graded by the AICPA, and have a certain amount of professional work experience in public accounting. The requirements for certification are determined by each individual state's accounting board. The National Association of State Boards of Accountancy provides a chart detailing the requirements for certification in each state at NASBA.

Sunday, March 26, 2006

Are accounting school graduates favorably recruited for entry-level management positions?

A major problem facing the accounting profession today is the shrinking pool of accounting school graduates from which to recruit. An obstacle accounting educators must overcome in recruiting students is a misguided perception that (1) accounting as a profession offers narrow career opportunities and (2) accounting positions do not offer variety in the type of work performed. While anecdotal evidence exists that an accounting degree provides broad training suitable for a variety of business careers, this proposition has not been well-established empirically. The purpose of our research is to determine whether students majoring in accounting are favorably recruited for general entry-level business positions.

The research resulted in several findings. The most notable was that accounting majors are significantly preferred by recruiters over general business majors for general entry-level management positions. A second result was that students with a Master of Business Administration (MBA) degree were not significantly preferred over those with a Bachelor of Business Administration (BBA) degree. This second result, however, was strongly influenced by the effect of accounting as an undergraduate major. For example, an accounting major with only a BBA received a higher mean recruitment rating than a student with an MBA (having general business as the undergraduate major).

The motivation for our research is the potential to enhance the efforts of attracting students into accounting programs. Our findings provide evidence that selecting accounting for an undergraduate major offers a variety of career alternatives. Not only does this result have positive implications for recruiting students to major in accounting, but it also reinforces the efforts of IMA and the AICPA in promoting accountants as professionals possessing a variety of business skills.

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