Accounting: Top Firms

KPMG/Peat Marwick
767 5th Avenue, New York, NY 10153, (212) 909-5000. Worldwide revenue: $5.4 billion. CPA employees: 6,600.

Ernst & Young
787 7th Avenue, New York, NY 10019, (212) 830-6000. Worldwide revenue: $5.0 billion. CPA employees: 10,711.

Deloitte & Touche
10 Westport Road, Wilton, CT 06897, (203) 761-3000. Worldwide revenue: $4.2 billion. CPA employees: 8,600.

Arthur Andersen
69 West Washington St., Chicago, IL 60602, (312) 580-0069. Worldwide revenue: $4.1 billion. CPA employees: 4,600.

Price WaterhouseCoopers
1251 Avenue of Americas, New York, NY 10020, (212) 489-8900. Worldwide revenue: $5 billion. CPA employees: 3,700.

Grant Thornton
One Prudential Plaza, Chicago, IL 60601, (312) 856-0001. Worldwide revenue: $273 million. CPA employees: 1,050.

BDO Seidman - US Only
15 Columbus Circle 1, New York, NY 10023, (212) 765-7500. Worldwide revenue: $181 million. CPA employees: 840.

McGladrey & Pullen 102 W 2nd Street, Second Floor, Davenport, IA 52801, (319) 324-0447. Worldwide revenue: $179 million. CPA employees: 1,066.

Accounting: Facts & Trends

Future is Bright

The future of accounting is bright according to the Bureau of Labor Statistics which projects a 34% increase in job openings by the year 2005. Much of this reflects the increasing complexity of corporate transactions and growth in government. Demand is especially high in the tax and health care areas.

Managerial Accounting Ideas Taking Off

An important new way of thinking about accounting in the 1980s was activity-based costing. Now firms are focusing on activity-based management, process-view analysis, constraint checking and business process analysis as well. The world of management accounting is evolving rapidly and there is high demand for accountants who are knowledgeable about these trends.

Image of Accountants Improving

Accountants are working on their image. The AICPA announced a $3 million campaign to spread the word about how CPA's add value. In a Wall Street Journal on the topic Mitchell Klein, a partner of Fasman, Klein & Feldstein, a New City, N.Y., accounting firm, said "Too many people associate accountants with death, tax and bad news and question our integrity because of the big audit failures that major accounting firms have failed to catch."

Ever Think of Working as a Temp?

An interesting option for persons interested in not spending their entire lives in the office is become an accounting temporary. There is high demand for specialized accounting temps and CPA firms have started to hire temps to smooth out their staffing through seasonal cycles in the business.

Skill Depth Becoming Deeper for CPA

Over 30 states now have laws which require a fifth year of education to become a CPA by the year 2000. This change reflects a more competitive business environment and increasing skills requirements because of the rising complexity of many businesses.

Skill Requirements Becoming Broader

There is high demand for individuals who can go beyond technical skills and display good interpersonal abilities, legal knowledge sales abilities and foreign language skills. Accountants are broadening as business globalizes and becomes more team-oriented.

Experienced Players Gaining Currency

There is also rising demand for persons with consulting skills or industry experience and falling demand for college graduates.

CPA and CMA Both Highly Valued

A recent survey found that over half of corporations which hire accountants feel that the CPA (Certified Public Accountant) designation and the CMA (Chartered Management Accountant) as very important. To learn more about the CPA ontact the American Institute of Certified Public Accountants at (212) 575-5505. To learn more about the CMA contact the Institute of Management Accountants at (201) 573-9000.

Accounting: Links & Resources

Career Information, Company Profiles and Contacts

Accounting and Finance Jobs

In partnership with jobsinthemoney.com, the leading financial job site.

Accounting & Finance Jobs

Accountant's Directory.

American Business Information, Inc. (402) 593-4600. This directory lists thousands of local and national addresses for accounting firms in the United States. At $3700 the directory is best found in the library.

Accounting Workshop.

An online resource that lists information and tips for accounting students. Courtesy of John Wiley and Sons.

"The CPA Jungle"

Wall Street Journal, July 24, 1991, p. A1, A8. This sobering article describes how starting in the late 1980s the accounting business became much more competitive because of mergers and shrinking auditing business. Tells of layoffs and how many accountants are leaving the business and seeking psychological help. Since this article was written, hiring has picked up.

National Directory of Accounting Firms and Accountants

Gale Research, (800) 877-GALE. Cost: $125. This superb resource describes what companies specialize in and provides essential information regarding size, phone and addresses.

What Corporate America Wants in Entry-Level Accountants: Executive Summary

By Gary Siegel and James Sorensen, published jointly by the Institute of Management Accountants and the Financial Executives Institute, (800) 638-4427 extension 278. This study details skills which are in demand in Corporate America where over 2/3rds of accountants work. The largest gaps in preparation of new accountants were found to be in budgeting, product costing and control and performance evaluation.

Careers for Financial Mavens & Other Money Movers

By Marjorie Eberts and Margaret Gisler, NTC Publishing Group, October 1998.

A good overview of career possibilities for those with an interest in finance and accounting.

How to Get Ahead in Accounting, Finance and Banking

From Robert Half International. Order a free copy of this informative brochure online or call the corporate office at (415) 854-9700.

Organizations

Robert Morris Associates

RMA is also the only financial services trade association that specializes in lending and credit risk information, research, and training. More than 3,000 commercial banks, thrifts, and other financial firms are members of RMA, represented in the Association by some 18,000 financial professionals (called Associates) in 50 states, Puerto Rico, Canada and numerous foreign cities including Hong Kong and Singapore.

Ideas and Know-How

WWW Virtual Library: Finance.

An online compendium of web sites of interest to students and those who follow finance.

Magazines and Newspapers (Online and Off)

Accounting Today

(212) 371-9400. This bi-weekly publication provides excellent coverage of important trends in the accounting profession. Good background reading.

CPA Journal.

(212) 973-8300. This monthly journal provides information of general interest to CPAs and activities at the major public accounting firms.

Journal of Accountancy.

(212) 575-6200. One of the leading accounting monthly's. Covers the profession well and also has a good section with job listings.

Management Accounting,

Official Magazine of the Institute of Management Accountants, (201) 573-9000. Cost : $20 per year or $10 per copy. Includes a section on career management and discusses trends in the profession.

New York Times

Sunday classified section in New York edition is reknown for listing ads by investment banks looking for talent. Cost: $1.25 at newsstands. Also look at the Financial Times and CareerPath.

Wall Street Journal.

The most widely read business periodical in the world. And it's on the net! You must register for the net version. Great way to keep up with what's going on in the markets and the world. Following tombstones and ads is also a good way to see which banks are involved in what types of activity this year. You may also be interested in Careers.wsj.com.

Accounting: Salaries

The median entry level salary in public accounting in 1999 was $29,000. After four years you can expect to make something approximating $40,000 to $55,000. Salaries are usually similar in the private sector and slightly lower in government. They tend to higher in major cities.

Actual salaries paid in the early 1990s in an October 1992 Smart Money survey were as follows:

	Deloitte & Touche	Grant Thornton	Typical Experience
Entry Level	$33-55,000	$34,000	First year
Junior Staff Accountant	$36-63,000	$37,000	1-2 years
Senior Staff Accountant	$40-85,000	$42,000	3-5 years
Manager	$50-110,000	$63,000	5-7 years
Senior Manager	$72-160,000	$87,000	7 years plus
Partner	$260,000	$180,000	10 years plus

Also check out:

Accounting: Job Options

Audit

Work in audit involves checking accounting ledgers and financial statements within corporations and government. This work is becoming increasingly computerized and can rely on sophisticated random sampling methods. Audit is the bread and butter work of accounting. This work can involve significant travel and allows you to really understand how money is being made in the company that you are analyzing. It's great background!

Budget Analysis

Budget analysts are responsible for developing and managing an organizations financial plans. There are plentiful jobs in this area in government and private industry. Besides quantitative skills many budget analyst jobs require good people skills because of negotiations involved in the work.

Financial

Financial accountants prepare financial statements based on general ledgers and participate in important financial decisions involving mergers & acquisitions, benefits/ERISA planning and long-term financial projections. The work can be varied over time. One day you may be running spreadsheets. The next day you may be visiting a customer or supplier to set up a new account and discuss business. This work requires a good understanding of both accounting and finance.

Management Accounting

Management accountants work in companies and participate in decisions about capital budgeting and line of business analysis. Major functions include cost analysis, analysis of new contracts and participation in efforts to control expenses efficiently. This work often involves the analysis of the structure of organizations. Is responsibility to spend money in a company at the right level of our organization? Are goals and objectives to control costs being communicated effectively? Historically, many management accountants have been derided as "bean counters". This mentality has undergone major change as managemnet accountants now often work side by side with marketing and finance to develop new business.

Tax

Tax accountants prepare corporate and personal income tax statements and formulate tax strategies involving issues such as financial choice, how to best treat a merger or acquisition, deferral of taxes, when to expense items and the like. This work requires a thorough understanding of economics and the tax code. Increasingly, large corporations are looking for persons with both an accounting and a legal background in tax. A person, for example, with a JD and an CPA would be especially desirable to many firms.

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Places Where Accountants Work

Public Accounting Firms

Public Accountants work in partnerships which provide accounting services to individuals, businesses and governments. The largest, high-profile public accounting firms are known as the Bix Six and dominate the field of accounting. This field offers advancement potential to audit manager, tax manager or partner reached by only two to three percent of new hires.

Government

Government accountants may work at the local/state level or the federal level and administer and formulate budgets, track costs and analyze programs. This work can have high impact on the public good but can also get political and is subject to bureaucratic obstruction. Government accounting offers advancement in most organizations to controller and possibly to higher administrative positions. Places which hire heavily at the federal level include the Department of Defense, the General Accounting Office and the Internal Revenue Service.

Corporations

Corporations big and small typically have an accounting group which prepares financial statements, tracks costs, handles tax issues, works on international transactions. The work is exciting and offers tracks to audit manager, tax manager, cost accounting manager and controller on the accounting side or to manager of financial planning and analysis and Treasurer on the finance side.

Solo

A time-honored form of employment is to become a CPA and hang out your own shingle. This form of work requires you to generate your own business, but has the benefits of offering close customer contact, a high degree of independence and, depending on how good you are, high financial rewards. This work can be risky but puts you in the midst of community affairs.

Accounting: Skills and Talents

Accounting offers superb career opportunities in many different contexts. The field is normally divided into three broad areas: auditing, financial/tax and management accounting. The skills required in these areas differ as follows:

Skill	Audit Accounting	Tax & Financial	Management Accounting
People skills	Medium	Medium	Medium
Sales skills	Medium	Medium	Low
Communication skills	Medium	Medium	High
Analytical skills	High	Very High	High
Ability to synthesize	Medium	Low	High
Creative ability	Low	Medium	Medium
Initiative	Medium	Medium	Medium
Computer skills	High	High	Very High
Work hours	40-70/week	40-70/week	40-50/week

Accounting is very team-oriented.

You will usually start as a junior member of a team responsible for auditing an important account or preparing financial statements. It is important then that you enjoy working as part of a team and that you learn to do so in your education.

You've Got to Surf Waves of Innovation

The field of accounting has seen constant technological and intellectual innovation in recent decades. Firms are implementing new electronic systems for submitting and preparing financial statements. And ways of tracking costs have improved with the introduction of techniques such as activitity-based costing.

Cultivate Your Network

It's important to have a good network of business contacts in consulting as you progress. New business development becomes part of your job. As your classmates rise in their respective business areas it is important to stay in touch with them as they may become your future customers.

Accounting: Overview

Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions including computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and health care benefits management.

There's a lot to get out of a career in accounting. Perhaps most important: You will learn how business works. The field of accounting offers stimulating and challenging work that is constantly evolving. Because accountants spend a lot of time looking under the hoods of businesses they really learn how business works. It's no surprise that many successful players in business began their careers as accountants. It's also no surprise that most Chief Financial Officers of large corporations have a background in accounting. An accountant is perfectly positioned to become a CFO because he or she probably has the best understanding of what drives business and profits in a company.

To begin your career, you are most likely to start at a public accounting firm such as Ernst & Young or PriceWaterhouseCoopers. Most people do not make partner at public accounting firms but the experience and training can be excellent. From there, many move on to careers with an accounting focus in business or government.

A note of thanks to Prof