| Dynamic Culture of Accounting Profession | | | | get a Masters in accounting or get an MBA, |
| Sean Lowery | | | | Masters of Business Administration. The added |
| Cost Accounting 303 | | | | education illustrates the commitment to the |
| October 25, 2009 | | | | profession which can only be a benefit. Even |
| In the business world, the Accounting profession | | | | though there will be an increase demand for |
| has been referred to by many as the | | | | accountants, many people are choosing not to |
| “language of business.” The field is defined | | | | enter the major because of the increase in |
| as the study of how businesses track their | | | | requirements for CPA’s and government |
| income and assets over time. Duties involve | | | | regulations. The American Institute of Certified |
| preparing financial statements, computing costs, | | | | Public Accountants, AICPA, stated that between |
| and developing certain tax strategies. | | | | 1996 and 2000, the number of students pursuing |
| Accountants, today, work as consultants in | | | | an accounting degree decreased by 25%. |
| business. They advise management in many | | | | However, the percentage of people who pass the |
| different financial decisions and are involved in | | | | CPA for the first time had increased. The |
| many business transactions. An accountant must | | | | decrease of people pursuing an accounting degree |
| possess a wide variety of skills. Analytical skills, | | | | is contributing to a likelihood of substantial salary |
| computer skills, and communication skills are all | | | | increases for CPA’s This can be explained by |
| necessary to have in the profession. The | | | | the implementation of the 150 hour rule. |
| changing atmosphere of the accounting profession | | | | Accounting offers many opportunities and job |
| has resulted in a more demanding curriculum, but | | | | options. Many new opportunities have been |
| allows for many diverse job options in accounting. | | | | created due to the changing culture of Accounting. |
| Accounting has undergone many changes over | | | | Before, accounting graduates would enter into the |
| the past several decades that have changed the | | | | field with a good mindset of what they were |
| field drastically. Globalization is a key factor that | | | | going to do. For many who obtained their |
| changed the profession and how it is defined. | | | | bachelors in Accounting, they were most likely |
| Since many companies are now going overseas, | | | | going to work in a big four firm, attempt to |
| the need for a set international standard of | | | | certified, and advance within the career. The Big |
| accounting is needed. For example, more | | | | Four firms include PricewaterhouseCoopers, |
| investors are looking overseas for possible | | | | Deloitte Touche Tohmatsu, Ernst & Young, |
| investment opportunities, so reliable information | | | | and KPMG. Specifically, the new industries created |
| from an international company is needed. | | | | in the past decade helped to offer more |
| Accounting professionals must keep up with | | | | opportunities in Accounting. New industries lead to |
| globalization by providing more accurate and | | | | more specialization in Accounting. Instead of |
| up-to-date information. They must understand | | | | accountants doing a wide variety of tasks at a big |
| foreign companies’ business practices and | | | | firm, Accountants are working in small or |
| business laws. Another factor that contributes to | | | | mid-sized CPA firms. These smaller firms focus on |
| the changing environment of the field of | | | | a specific type of company or size of company. |
| Accounting is the increase regulations and | | | | Examples of these firms include BDO Seidman, |
| government control. Financial accounting usually is | | | | Grant Thornton, and RSM McGladrey. |
| overseen by the Federal Accounting Standards | | | | Biotechnology, environmental business, |
| Board, FASB. Accountants must also conform to | | | | telecommunications all require accountants to |
| the principles which are outlined in the Generally | | | | operate efficiently. A new trend for accounting |
| Accepted Accounting Principles, GAAP. In the past | | | | majors is the increase in non accounting field. |
| decade, a handful of incidents have called for | | | | Many accounting majors end up working in |
| changes in regulations. Major scandals include the | | | | careers related to finance, management, |
| incident of Enron and TYCO electronics. In | | | | marketing, or even computer science. |
| response to these scandals, the federal | | | | Accountants, in the past, were not necessarily |
| government has created the Sarbanes Oxley Act. | | | | considered to be consultants. They explained |
| This law set new standards that would enhance | | | | costs and assets, but were not in control over |
| companies’ reliability and accuracy in their | | | | profit gaining. Making accountants influence in |
| financial reporting. Many aspects of the legislation | | | | revenue generation allows for more options in the |
| provided significant changes, particularly in how | | | | career. Many accountants take jobs as in budget |
| auditing is conducted. These changes call for | | | | analysis. Budget analysis involves developing and |
| companies to spend millions of dollars to keep in | | | | managing organizations financial plans. Managerial |
| compliance of the new legislation. The | | | | Accounting very much involves consulting with top |
| Sarbanes-Oxley Act of 2002 also allowed for | | | | management on strategies to maximize profits. A |
| changes that greatly affects internal users such | | | | popular trend in the Accounting field is tax |
| as managers and executives. New industries | | | | strategy. Accountants who have knowledge on |
| have also called for major changes in the | | | | federal tax regulations may pursue career options |
| Accounting profession. In the future, changes will | | | | in developing tax strategies and increasing profits. |
| occur that will increase the outlook for accounting | | | | Women are especially experience more |
| majors. Many current accountants are retiring or a | | | | opportunities in Accounting. There has been a |
| few years away. | | | | large increase of women accounting graduates |
| The accounting field is increasingly becoming more | | | | and many go on to work in variety of different |
| demanding. To keep up with the dynamic culture | | | | careers. Some women accountants end up |
| of accounting, the curriculum and standards for | | | | working in financial institutions, education, health |
| accounting has become stricter. The highest | | | | care institutions, etc. Many Accounting majors are |
| certification for an accountant is passing the | | | | pursuing careers in the FBI. Many accountants |
| Certified Public Accountant exam, CPA. This | | | | who work for the FBI work as forensic |
| rigorous exam is composed of four parts, which | | | | accounting. Forensic accounting involves |
| include auditing, financial accounting and reporting, | | | | investigating white collar crime. The need for |
| regulation, and business environment. Before, | | | | forensic accounting is increasing as a result of |
| people gained the certification by simply passing | | | | white collar scandals in the past decade. |
| the four part exam. However, in the past decade, | | | | In conclusion, the accounting profession has |
| new requirements have been set before a person | | | | undergone many changes, which calls for a more |
| can sit for the exam. For many states, it is now | | | | demanding curriculum and more job options. |
| required to have 150 semester hours and two | | | | Accounting remains to be and will always be |
| years experience in public accounting. Specifically in | | | | considered to be the language of business. The |
| Pennsylvania, the 150 hours and two years of | | | | field is now more than just how businesses track |
| public accounting experience will be implemented in | | | | their income. Accountants carry a wide variety of |
| the 2011. The reason for this change is to make | | | | skills, many of which who have developed new |
| the accounting field a more technical field. It also | | | | skills in the past few decades. It is correct to say |
| allows people to be better prepared to work in | | | | that accountants are now consultants who are |
| the changing environment of businesses today. | | | | involved in advising management. |
| They will be better prepared to tackle new | | | | Cuddy, B. (1992, Summer). New career paths in |
| challenges in the field such as working with | | | | accounting. Massachusetts CPA Review, 66(3), 8. |
| advancing technology and dealing with more | | | | Retrieved October 24, 2007, from Business |
| complex business decisions. The 150 hour | | | | Source Premier database. |
| requirement eliminates any inconsistencies | | | | Business Credit. (2002, October). Working Smart: |
| between state-to-state regulations. Accountants | | | | New Education Requirement Poses Challenges for |
| will be able to work in other states without | | | | Accounting. Business Credit, 8. Retrieved October |
| conforming to the specific standards the state | | | | 24, 2007, from Business Source Premier |
| has in place. The new consistency of standards | | | | database. |
| between states is needed in today’s high | | | | Warner, J. (2007, September). The New |
| tech, global environment. The new requirements | | | | Specialists. Directorship, 44(7). Retrieved October |
| benefits business is so many ways. After finishing | | | | 24, 2007, from Business Source Premier |
| a bachelous degree in Accounting, many go on to | | | | database. |