Accounting

What it’s about:

Accounting is known as the language of business. The major prepares you to gather, record, analyze, interpret, and communicate financial information about an individual’s or an organization’s performance and risks. You study such topics as financial statement preparation and analysis, risk assessment and control, management decision-making, tax preparation and planning, management of accounting information systems, auditing, and fraud.

What the study of this major is like:

Accounting is a population major available at most colleges, often housed in a school of business or management. Otherwise, accounting may be offered as part of a program in the liberal arts or sciences, usually in the economic or social sciences department. The accounting major includes both technical and application-based course work. The technical nature of some courses makes them will suited to the lecture format, which is often supplemented with interactive learning tools such as case analyses, computer simulations, and research projects. Many courses are taught as seminars, with plenty of student participation; some courses include hands-on, real-world experience.

Undergraduate concentrations are rare. You take courses in economics and finance, business law, business organization and management, marketing, and computer information sciences. You learn to measure costs, compile data, and determine how the data affect efficiency and profitability. After your introductory accounting courses, you study financial statements and how they are used to make business decisions. You also study such topics as risk assurance, e-commerce accounting and control, fraud investigation, internal auditing, and ethics.

One of the more challenging areas you may face as a major is financial accounting. Many students find it difficult at first-comprehending it can be like solving a complex puzzle. But once you master the subject, its framework and logic become second nature.

In addition to your accounting curriculum, you are usually required to take a range of liberal arts and science courses. Especially important are those in history and foreign languages (finance has become global). Because good communication is vital to the profession, you will also benefit from classes that sharpen your writing, speaking, and problem-solving skills.

In some accounting programs, you focus on theory. Other programs take an applied approach that stresses the skills you will need as an accountant. Some programs also have a niche emphasis, such as internal auditing or accounting information systems. Although some programs still have separate undergraduate and master’s degrees, other offer a five year program-a bachelor’s and a master’s are awarded jointly at graduation. These programs have become more popular with the phasing in of the rule requiring students who want to become a certified public accountant (CPA) to complete 150 credit hours of course work.

The accounting major prepares you for careers in public or managerial accountant work with management to monitor an organization’s financial health. Managerial accountants often need special knowledge about taxes, budgeting, and investing. While often helpful, a CPA designation is not essential for internal auditing, corporate accounting, and government accounting.

Career options and trends:

Auditor*; tax accountant/adviser*; risk assurance/information technology consultant*; corporate accountant*; financial planner; fraud examiner; government investigator (IRS, FBI).

The job outlook for accountants is very good. The best prospects will be for those with CPA certification or an MBA in accounting. To become a CPA, you must pass the national CPA exam, and also meet the certification requirements of the state where you want to practice; most states require a period of professional work experience and the equivalent of five years of college (150 credit hours.)

Large-scale business scandals have put accounting, auditing, and fraud investigations in the spotlight. CFOs and auditors have greater responsibilities and tighter rules governing their behavior. Thus the demand for well-qualified accounting professionals should remain high. The growth of global business will also lead to more demand for those with knowledge of international accounting rules.

Source: CollegeBoard 2012 Book of Majors