RXS676

You can go either route. Historically, most accounting majors went to work for an accounting firm because becoming a CPA required you to have a certain number of years of audit experience to get your license. The trend now is many states are eliminating this requirement, or creating a separate class of license that does not require it.

Some companies, especially larger, publicly-traded companies, have Internal Audit departments, which will allow you to get signed off for your audit hours. Some companies will allow you to do a rotation in internal audit even if you don't work in that particular department so that you can meet the experience requirement for your CPA.

The current environment is hard on CPAs as well as anyone else. Even if you aren't laid off, you may have limited ability to be promoted or limited salary growth. I don't think any job is truly "recession-proof." Accountants can and do get laid off, and of course if a company goes out of business, everyone loses his job.

But they generally are the last to go. During the 2001 recession I was working for a large insurance company, which had a 20% company-wide headcount reduction. This was quite big news, as the company was a major employer in the area. However, the finance and accounting departments continuted HIRING during this period. When times are tough, the CEO wants the month closed in one week instead of two. He wants budgets revisited quarterly, and then monthly, rather that just annually. He wants much more detailed support than he wanted before. All of this increases the workload of the finance and accounting departments of a company.

Many people are surprised to hear that, in spite of its nearly total shutdown in early 2002, Enron continued to exist until 2007. It existed as essentially a shell company whose main purpose was to liquidate the assets that the company had previously held. I can guarantee there were still a large number of CPAs working there, possibly even more than when the company was operating normally prior to 2001. Throughout this period, the company would still have been required to prepare financial statements, forecasts, SEC filings and tax filings. In fact, the increased complexity associated with discontinued operations, and the increased regulatory scrutiny of the company, probably INCREASED the workload of the finance and accounting departments.

You are also correct that you don't have to start all over again if you are laid off. When and if the accounting manager at ATA or Aloha is laid off, she won't have to start over again as an entry-level accountant at a new company. She will be able to get another comparable position at another company. And most CPAs are able to switch to different industries. CPAs do specialize, but it usually is by the finance function, not the industry. A CPA who specializes in SEC reporting or tax or internal audit will be able to get a job in that department at a different company, even if the company is in a completely different industry.

bryris

Private accounting is the 4th most recession proof job out there. Think about the very function of the job. Accountants deal with the money. Ever heard of a "bean counter"? It is typically used as a derogatory term. However, when times get tough, bean counters become important because they can outline what the company can and can't do within the bounds of its performance.

Furthermore, if times are tough, some might be more willing to hire a CPA to prepare a tax return rather than using TurboTax. Perhaps the human element will be able to find more deductions, etc.

I do believe that the large firms (big 4) are laying people off in proportion to the amount of business they are losing due to clients liquidating or going with a cheaper firm, etc.

Nobody is 100% safe in any industry. Except maybe a Dr. But, I'd tend to say that that compared to being an auto dealer, real estate agent, construction worker, or an airline pilot, its probably one of the safer bets.

JMT21

Just to be clear, in most states, experience consists of providing any type of services or advice using accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills.

As the certification requirements vary greatly from state to state, the website below is a very useful resource for determining state specific requirements:

State Requirements

I have to think the big four are in pretty good shape. Liquidations may have hurt them some, but overall they still have the market pretty well cornered. Keep in mind that navigating complex government oversight (i.e. regulation) is the professions bread and butter. Think Sarbanes-Oxley; after that piece of legislation passed in 2002 there weren't enough CPA's to be had. Only in the past year or two has supply finally caught up with demand.

Furthermore, I can only think that whatever legislation comes out of this current financial mess will be a boon for those in the career. You are entering the profession during very interesting times. Good luck knocking the exam out. It's a beast.

bryris

JMT21 - what's your story? You seem pretty damn knowledgeable. Are you a CPA or a practicing accountant? Have you figured out a way to blend this with aviation?

Sarbanes Oxley is "above" me. I do not mean to say I haven't studied it or cannot figure it out. But rather, I have no desire to work with Fortune 500 companies and their SEC filings.

I am a simple man and live in a simple world.

My goal is to start my own "mom and pop" tax/consulting business in 4 or 5 years. Like an airline pilot, I am going to have to pay my dues at a firm for a few years to build up my knowledge so that I can become more and more autonomous with the material. When I am done with the CPA, I am going to submit my resume to the smaller firms in the area (2-5 partners). I see the experience to be gained in this smaller, more informal area, to be more analogous to where I want to go in the profession.

I can see myself opening my own business, ramping it up to the black over a year or two, and growing it just large enough to turn 6 figures or so, then just maintain that.

Key to my decision to embark upon this journey is the knowledge that this IS where I will end up. Unlike aviation, when I do it and how I do it, are entirely up to me. And it can be done. Starting a CPA business isn't that difficult because it is a service based business. Knowing the subject followed by aggressive marketing is all it takes.

Sitting at a desk working for someone else on someone else's terms does not interest me in the slightest. In fact, if I knew that this road was leading me into this rut where all I could expect is to work for a firm under the thumb of someone else, I'd stick it out in the airlines.

My entire family are entrepreneurs. My bro is a professional blogger, father owns an architectural business, mother owns a childcare center, uncle is a storage provider and buys/sells boats, father in law owns a dirt pit, etc. I am no stranger to witnessing what goes into running a business.

If I am in control, my financial success is directly proportional to the work I do rather than my annual review, if I can vacation when I want without having it "approved", etc, then I am completely willing to work the required hours to run the business.

I am 27 years old, I've got the next 45 years of my working life to mold it into what I want it to be and come hell or high water, I will achieve my vision.

Some out there will offer advice that it is too hard and not worth it, but I have succeeded at too many things after having received "advice" that it couldn't or shouldn't be done.

There are those out there who want to be big shots, wear their pressed suits, drive their fancy cars and work for the big firm. I am not that guy. I will drive my Jeep, wear blue jeans, and focus on providing services to the "middle class", as Obama would call it and I expect to do just fine.

There is room for everybody. It is human nature to make the rules more and more complicated over time. College textbooks are thicker than they used to be, as is the FAR/AIM, etc. And the tax code, filing requirements on Govt/NP companies, etc will continue to get thicker ensuring work for the profession.

Also, for me, the CPA is also just a noble game to play right now. I am aware that it gives no extra privileges besides signing off on an attestation. But, to the lay eye, an accountant = a CPA. In order to market myself as laid out, I'd love to put those letters behind my name. Might get me more phone calls and hence more business.

As an alternative road, I can also see myself getting the CPA done, the airline business starts booming again, going back to a better regional (or even directly into a corporate gig, I have nearly 2,000 hours and over 1,000 ME/turbine), going through the right seat again, upgrading to get the PIC time, then looking to get a position where I can not only fly some of the time, but support many of the business functions as well. A pilot with experience AND a knowledgeable CPA in one person could prove to be a powerful combination in the corporate aviation world.

All options are on the table.

cargo hopeful

Wow, well laid out brother. I’m sure you already know this but I’ll say it anyway, it’s not going to be the easiest journey but eventually, you’ll get there, wherever “there” is for you. It’s going to be a tough road ahead but what we attain too cheaply, we esteem too lightly. Tail winds!

ChrisH

Finance has always been an interest of mine. Accounting, being a part of finance, is something I am interested in. My question is, what is the overall process of becoming an accountant. What kind of income potential do accountants have?

bryris

The income can provide an upper middle class lifestyle fairly easily. Likely won't be "wealthy" per say, although you could be. But wealth on that scale will likely be the result of breaking the typical accountant mold (opening a business with the knowledge for example). But playing the role of an accountant, or a CPA will start at 45-50k, and go up to six figures after several years.

I believe that an airline pilot in his prime (SWA capt or the like) can probably bring down more money than a CPA. However, I do believe that over the lifespan of the profession, an accountant will come out ahead. This is strictly financial though and says nothing for love for the job, etc.

RXS676

Precisely. I can say from personal experience, working as a CPA can be boring. Mind-numbingly boring. I'm talking so boring it feels like your intelligence and natural abilities as a human being are being insulted.

SkyHigh

Try sitting with arms folded for 5 to 16 hours of staring at static CRTs. To be then followed by 36 hours in a concrete hotel room watching TV that is in a foreign language. Now that is boring.

At least an accountant can get up to use the restroom once in a while without having to ask for permission.

SkyHigh

cargo hopeful

Sky my man; you don’t have to put down the job just to make your point. It’s kind of like when people curse, it usually means they don’t have anything else intelligent to say.