Career Paths in Accounting General Body Meeting #5 Monday, October 23, 2017

Accounting Public Private (Industry) Government Agencies

Public Accounting Certified accountants (CPA’s) provide services to private businesses, individuals, non- profits, or governments Audit Reviewing, editing, preparing financial statements to be disclosed to public. Testing and validating information and discussing and inquiring with clients. Tax Advising on tax planning and preparing the return. Provide advice to client on transactions and ways to handle intended changes in business. Advisory/Consulting Overall strategic planning and implementation of specific operations

Career Path in Public Accounting Penn State is recruited heavily from Big 4, other large firms, as well as smaller firms Best Way to Get Started: Meet recruiter at event, apply for leadership conference Attend conference (1-2 days), possible internship offer Intern->Associate->Senior->Manager->Partner ($$$) The experience and connections make for exceptional exit opportunities in your industry of choice Don’t just look at Big 4! There are many smaller/regional firms which are a great starting point.

Private Accounting/ Industry Employees of entity set up systems and record transactions; then aggregate them into financial statements Family-owned to F500 F100 Companies Goal is to improve financial performance through review of financial statements

Career Path in Private Accounting Highly variable Short-term goal should be finding internship in your industry of choice Full-time career path: Staff Accountant->Assistant Controller->Controller/Manager->CFO

Government Agencies IRS FBI and Other Regulatory Agencies Review tax returns to enforce tax laws set by Congress Ensures Gov. is properly funded FBI and Other Regulatory Agencies Investigate fraud and other illegal activities (not just financial) Government Accountability Office Provides auditing, evaluation, and investigative services for the United States Congress How the government is using taxpayer dollars

Different Certifications CPA- licensed by state governments and allowed to write audit reports and give opinions on publicly traded company financials. Can also sign tax returns as paid preparers and represent clients in front of the IRS. CMA- specializes in company accounting management. Thus, it makes these candidates great for internal management and executive level roles in companies. CFA- train you and prepare you for a career in the finance and investment world. Analytic thinking about finance, investing, and how businesses operate. CIA- overseeing a company’s internal financial processes to ensure compliance or flag deficiencies. Work for large companies performing audit procedures and helping independent auditors do their jobs

Work-Life Balance Public Private/Government Hours worked are highly variable (depends on season/firm/branch) A study of public accountants in 2002 by Sweeney and Summers reported an average of 49 hours per week outside of busy season, and 63 hours per week during busy season (which lasts between 3-5 months of the year) Private/Government Typically 40 hours per week all year

So what do I pick? The best advice is to start as early as you possible can to do research work on all the alternatives mentioned Network with representatives from as wide a range of organizations as possible. It is not really possible to set your career goals in a meaningful manner without first engaging in such research work and networking activities

Can’t Go Wrong Accounting is incredibly diverse; meaning any industry will have a position for an accountant Accounting is incredibly lucrative Accounting degrees earn ~$300k more over lifetime than average college degree (The Hamilton Project) Ultimately you need to pick priorities and find career that gives you them