Degrees In Accounting

Now that I’ve received my Master’s Degree in Accountancy I often get asked by aspiring accountants if they should try to get a Masters or just stick with a Bachelors. While everyone’s situation varies, let me leave you with some ideas that may save you some time, money, and heartache in the long run.

Often when we are making big decisions in our lives we make the fatal mistake of looking at only two decisions. This happens because of decision triggers. A decision trigger is some event that happens in your life that makes you jump past thinking about what your true life objectives are and dive into evaluation between option A and option B.

For example, pretend that you are working at one of the Big 4 Accounting Firms. You have been there for three years and are now a senior. You get a headhunter call asking if you would want a different job. What is your immediate reaction? You start stressing out and making pros and cons lists of your Big 4 job versus this new job offer. I’m willing to bet you didn’t take the time to evaluate what your long-term objectives are. These types of decision triggers leave us being unproductive and they often get us down paths that we did not intend to walk.

If you didn’t understand the above discussion about decision triggers, then just know that before you decide which degrees in accounting you want to obtain depends on what career you want to have. The famous quote, “start with the end in mind” really applies when making this decision. If you don’t know right now, where you want to end up, then it doesn’t really matter which option you take.

Now that you have the type of career in mind you want, allow me to give you some advice. If your goal is to work for the Big 4 for at least a few years here are some items to consider.

CPA requirements: there is at least one state that I know of that requires you to have a Masters Degree in Accounting before sitting for the CPA exam. If you are going to work for the Big 4, you are going to need to get your CPA eventually. It is probably a better idea to get it before you start working for them. Try really hunkering down and taking this test during the summer after graduation and before starting to work. Most of the Big 4 will pay for you to train and take the exam. In addition they will give you a pretty hefty bonus for passing the exam (around $5,000). Talk to some accountants in your area and ask them what the requirements are for getting a CPA. If you need a Masters, best to just dig deep and get it now.

Other than for sitting for the CPA exam, if your goal is to work for the Big 4, you are probably better off with a Bachelors Degree in Accounting. The reason for this is because you will be able to start working earlier. Not only will this allow you to make more money, but it will allow you to advance. Accounting firms are set up for pretty much automatic advancements. So if you show up for work every day and have a pulse, chances are you are going to be promoted.

Let me tell you a quick story about why those of you who want to work for the Big 4 should get a bachelors degree instead of a masters. I got into the Masters program at my school while a bunch of my friends who applied did not. These friends started working for the Big 4 immediately while I received more education. After I finished my Masters Degree in Accounting I got a job with the Big 4. Want to know who the people were training me and in charge of me? Those same friends that didn’t get into the Masters program. They definitely got the last laugh.

You can’t put a price on education and I definitely enjoyed earning my Masters Degree. But if I had taken a look at my objectives, then I would have clearly seen that a bachelors degree would have been better for me.

What Was Taught

While earning my degrees in accounting, I learned a lot about the accounting principles for both business and nonprofit organizations (for example we learned a bit about church accounting). It would be impossible to learn all of the rules of accounting during a lifetime, so during my years of schooling the teachers focused on teaching us the principles. It was amazing to see that by following these guidelines, 95% of the time you could determine the proper accounting of a transaction. It is interesting to note that we didn't really learn anything about how to use popular software like QuickBooks Accounting Software.

In summary take time to consider what your objectives are before deciding what degrees in accounting you want to obtain. Check the CPA requirements and take the shortest route to achieving your goals. However, if you enjoy school, staying for another year or two might not be the worst thing you ever did.