Letters to the Editor

Accounting Students Have Many Opportunities in an Ever-Changing World
Re: Advice to Accounting Students: Smile at the Big Five But Look Elsewhere for a Job
From: Bud Kulesza, bud.kulesza@worldnet.att.net

Editor's Note: Bud Kulesza is an official of the Institute of Management Accountants.

J. Edward Ketz is exactly on point with his advice to accounting students, but having been a Practitioner in the non-public arena for over 25 years, I must say that public accounting has never been "where the action is". The best analogy is that of coach or referee versus participant in any sport.

The coach role or referee (public accounting) is important but much less in demand than the participant (non-public accountant or what some refer to as Corporate Accountant), and more importantly the participant is really involved in the action.

The lower starting salaries for accounting graduates in public accounting just reflect the economic reality of the value added through the application of a very narrow consolidation or attestation view of accounting. The Big Five public accounting firms shouldn't be blamed for this view although they certainly failed to recognize quickly enough the change in the perception of value added as a result of these activities over time. At one point it appeared that CPA firms needed employees with different skill sets than the corporate world sought. That myth has long been dispelled as they have come to the economic reality of what their customers want and are willing to pay for. The bottom line is that consulting services rather than audit are of higher added value and customers are willing to pay more for those. Audit has become a commodity and priced accordingly.

But the real message and opportunity to students is that there is an even greater opportunity for those who are willing to broaden their knowledge base through the applied use of technology. Students who also have course work in computer applications and financial analysis significantly increase their employment opportunity, not to mention their opportunity for having more satisfying jobs that use not just targeted accounting skills, but rather allow for their integrated use along with technology and analysis to really participate in the decision making process of business.

When you have a toolbox with only one tool you tend to use it for every purpose; when you have a variety of tools your opportunity for successfully accomplishing tasks greatly increases as you have the ability to use them separately or in concert to get the job done. It is no longer the Stone Age for accountants where a simple hammer will do. Technology will continue to move the profession faster and in more different directions than we ever thought possible just as it has in our personal lives. Standing still is simply not an option.

Educators must take this to heart since the business community has already embraced this, both in public and non-public arenas. The students have addressed this through opening up Beta Alpha Psi to accounting, finance and Information Technology majors where they once allowed only accounting majors. Educators need to stop protecting the silos that often exist that separate these disciplines on the college campuses and work more closely together to prepare the students for the new accounting environment now and in the future. Waiting for a change in the economy to rebalance the supply and demand of students that are currently being produced will not work over the long haul. For students, the outlook remains fantastic for those willing to acquire the skills necessary to meet market expectations. Working in a profession that constantly remakes itself to meet the ever-changing needs of the environment will be challenging and rewarding. What more could be asked?

-- Jan. 8, 2001