Letters to the Editor
Students: Mid-Sized Local Firms Make a Great Start
Re: Advice to Accounting Students: Smile at the Big Five But Look Elsewhere for a Job
From: Edwin J. Kliegman, ejkcpa@att.net
Editor's Note: Kliegman is a former president of the National Conference of CPA Practitioners.
I think Mr. Ketz is off base in several areas. He states that 5-10 years ago accounting grads commanded some of he highest salaries. That's not so. Accounting salaries have never been in the top echelon. True, the Big Eight, Seven, Six or Five have led the way in paying higher salaries, but never matched law and management information services, to name but two.
Accounting salaries today do not match the top categories. One of the problems practicing CPAs have in today's marketplace is that they have not equaled salaries paid to MIS and other occupations. Many practicing CPAs are re-evaluating their positions and increasing fees in order to increase salaries to staff. I should point out that salaries are not the only reason or excuse for reduced numbers of accounting students and graduates.
Today's generation looks to quality of life issues, which in many cases rate higher than salaries. They also look to the nature, mission and reputation of a potential employer. In addition, the AICPA has been trying very hard to denigrate the CPA and the value of being a Certified Public Accountant. (That can be the subject of another paper).
Mr. Ketz seems to ignore the potential employers in the accounting profession, other than the Big Five. He seems oblivious of the tremendous advantages of seeking employment in a small or medium-sized practicing CPA firm. Anyone looking for a well rounded, business oriented education after graduation would be well advised to go to work for a smaller practice unit. The pay may not be as much as the larger firms, or MIS outfits, but the experience one can get in the smaller milieu far exceeds that in most other areas.
Where else can you get to learn practical accounting, every facet of business, dealing with people (clients and their employees), taxes, banking, finance, dealing with governmental agencies, computers, MIS and many other areas of business and life. In a smaller practice, depending on one's ability and desires, the opportunities are without limit.
When Mr. Ketz says, "Accounting degrees still have great worth even if they aren't valued by accounting firms" he is, of course referring to the Big Etc. But they haven't been accounting firms for many, many years. They are "consulting firms". They haven't used CPA on their letterheads or advertising for a long time.
His suggestion that graduates look to "corporations" for their first jobs is unfortunate. The accounting education that one receives in "corporate America" is vastly different (and some might say Inferior) to that which one can get in public accounting. As described above, an accounting education in a smaller practice unit can be invaluable and can prepare one for entry into almost any arena, including entrepreneurship.
I do agree with Mr. Ketz on his opinion of the 150-hour program. It is one of the programs fostered by the AICPA that is of very little value to the students and to the CPA profession. It should be eliminated.
My advice to accounting majors is to continue your accounting education. Take all the accounting, law, tax, computer, marketing and management courses that you can. Try to get a job as an intern for a small practice unit while you're still in school. Prepare yourself as best you can. When you graduate, go to work for a smaller sized accounting firm. The rewards will depend on you. There's a great future out there. It all depends on YOU.
-- Jan. 8, 2001
