What to Do with Accounting Degree

Summary

This video explores various career paths for individuals with an accounting degree. It covers opportunities in public accounting (audit, tax, consulting), private industry (staff accountant, cost accountant, internal auditor), and even starting your own accounting firm. It also highlights career transitions into finance, such as investment banking, financial analysis, and credit analysis. The video emphasizes the importance of certifications like the CPA for certain roles and advises on the diverse job options available, from entry-level accounting roles to more specialized fields like forensic accounting.

Takeaways

• 🎓 An accounting degree opens multiple career paths, including public accounting, private industry, entrepreneurship, and finance.
• 🏢 In public accounting, large firms like the Big Four offer three main tracks: audit, tax, and consulting.
• 🧾 Audit professionals handle tasks like bank reconciliations, inventory counts, and fixed asset depreciation, often involving frequent travel.
• 💰 Tax professionals start by preparing client tax returns and filings, eventually advancing to advising clients on tax strategies.
• 💼 Consulting in accounting can involve strategy, risk management, technology, or helping clients with business restructuring and software implementation.
• 📜 Large public accounting firms typically prefer or require accountants to obtain professional certifications like the CPA.
• ⚖️ Smaller accounting firms may offer better work-life balance and allow professionals to perform a mix of audit, tax, and consulting work.
• 🏠 In private industry, accountants work for a single company, government agency, or nonprofit in roles such as staff accountant, cost accountant, or internal auditor.
• 🕒 Private industry generally offers fewer work hours and less travel than public accounting, but public accounting can provide broader experience and higher pay.
• 🚀 Accountants can start their own firms, often beginning with bookkeeping and taxes for small businesses, expanding later into valuation or financial planning.
• 💹 Accounting knowledge is valuable in finance-related roles like investment banking, financial analysis, credit analysis, and budget analysis, even without a CPA.
• 🔍 Forensic accounting typically requires significant experience, but starting in internal auditing can be a stepping stone to that field.

Q & A

What are the main career paths available for someone with an accounting degree right out of college?

The main career paths include public accounting (audit, tax, or consulting), private industry (such as staff accountant, cost accountant, or internal auditor), or starting your own accounting firm. You can also transition into finance roles like financial analyst or credit analyst.

What are the key differences between working in public accounting and private industry?

In public accounting, you'll work for an accounting firm with multiple clients, gaining experience with different businesses, often requiring more travel and longer hours. In private industry, you'll work for a single company, typically with fewer hours and less travel, but the pay might be slightly lower compared to public accounting.

What is the significance of obtaining a CPA certification in public accounting?

The CPA (Certified Public Accountant) certification is highly valued in public accounting, especially for firms like the Big Four, where it's often required to advance in roles such as audit, tax, or consulting. It demonstrates a higher level of expertise and credibility in the field.

What are some roles available in public accounting aside from the Big Four firms?

In addition to large firms, smaller or medium-sized public accounting firms offer opportunities in audit, tax, and consulting. These smaller firms may offer a better work-life balance and might be more flexible regarding certification requirements.

What kind of work does a tax accountant do?

A tax accountant uses software to prepare clients' tax returns and other filings. With experience and promotion, they may transition to tax advising, helping clients with strategies to minimize their after-tax income.

What are the responsibilities of an internal auditor in private industry?

An internal auditor safeguards a company's assets by identifying and mitigating risks. They focus on improving operational efficiency and ensuring compliance with financial regulations.

Can someone with an accounting degree work in finance without an accounting certification?

Yes, many finance roles like financial analyst, credit analyst, and budget analyst require a strong understanding of accounting, but typically do not require certifications like the CPA.

What are the typical tasks of a cost accountant?

A cost accountant tracks and analyzes a company's costs, ensuring profitability. They focus on cost management and identifying areas for cost-saving or operational improvement.

What type of work is involved in a career in consulting within public accounting?

Consulting in public accounting can involve various areas, such as strategy, risk management, technology consulting, and software implementation. Consultants help clients optimize business processes, restructure, or choose new systems for data analysis.

What are some entry-level roles in accounting that don’t require a degree in accounting?

Roles like accounting clerk, accounts receivable, and accounts payable positions might not require a full accounting degree. However, these positions typically don’t offer the same career advancement opportunities as roles specifically requiring an accounting degree.