Careers in Accounting & Other Things I Wish I’d Known By Dave Vance, MBA, CPA JD. Objectives Help you understand the possibilities available to someone who studies accounting. Provide a framework for assessing the types of companies one should work for. What is accounting?
& Other Things I Wish I’d Known
By Dave Vance, MBA, CPA JD
Help you understand the possibilities available to someone who studies accounting.
Provide a framework for assessing the types of companies one should work for
What is accounting?
Is it just counting the beans?
Is it like eating sawdust without butter?
Actually, Justice Oliver Wendell Holmes described studying the law as like eating sawdust without butter.
Accounting is about measuring things:
Sales, Costs, Profits, Productivity, Growth
Helping companies find resources,
Being an honest broker of information and
Being a trusted advisor
Accountants are trained to see things others can’t
The man or woman who can help a company prosper will be well rewarded.
Get an accounting degree
Take extra courses as needed to reach 150 credits
Get a job with a Public Accounting Firm
Take a CPA review course
Take & pass the CPA exam
~ After getting a CPA a person’s career
could branch in many directions
A partner in a mid-sized CPA firm can make $400,000 per year.
A partner in a large CPA firm can make much more.
An accountant could work in private industry.
Rutgers class of 2006:
Range:$32,000 to $50,000
Compared to class of 2005 average: $39,253
A 5.1% increase from 2005 to 2006
Class of 2007 will be much higher
(from 2005 Careerbank.com salary survey)
Median CFO: $100,000 to $140,000
(Payscale, Inc. range depends on state) http://www.payscale.com/research/US/Job=Chief_Financial_Officer_(CFO)/Salary
Chief Financial Officer (CFO) is the most widely cited example of a highly compensated finance position.
However, the route to a career as a CFO is usually through accounting and not finance.
Finance can lead to positions in banking or stock brokerage firms.
Companies / Industries that do well can afford to pay well.
Companies / Industries that do not do well cannot afford to pay well,
…And are more likely to have periodic layoffs
Financial statements for all publicly traded companies are on the Securities & Exchange Commission (SEC) website: www.sec.gov
Click on companies and other filers and search for company and for form 10-K which contains financial statements.
A higher level approach is to compute revenue per employee (RPE) = revenue / # employees
For most companies revenue and sales are the same thing.
What can they afford to pay employees?
Largest CPA firm (Deloitte)$327,754
99th largest CPA firm (Seiler)$262,069
What can they afford to pay to attract talent?
Hicks Muse bought Vlasic out of bankruptcy for $135M and after restructuring it sold Vlasic 30 months later for $435M.
How much can it afford to pay its employees?
School of Business Camden
Careers in Accounting