Going back to school to become a CPA. Worth it?

[Don Karnage]

Right now i work for Goodyear tire in one of their "Retreading" plants. I make decent money ie around 38K a year but i honestly don't want to do this the rest of my life. I've thought about going back to school for accounting and eventually becoming a CPA. My question is how much money do they make? Is the field crowded?

 

[Q]

Becoming a CPA isn't something you just decide one day to do. Accounting is a pretty tough major, and getting a CPA is even tougher. Not to mention all of this is going to be extremely expensive and time consuming. I'm not trying to bash you down, I just want you to realize going to a real school and getting a real degree is nothing like the online diploma mills, er I mean 'online college', commercials plastered all over cable.

Certainly I applaud you wanting more for your life, and you are right, you can't retread the rest of your life (I've seen firsthand what you have to do). Getting just a B.S. in Accounting is a great field to be in, even if you don't end up getting a CPA.

 

[Gibson486]

My fiancee is an accountant...

She was offered a job at Deloitte under the condition that she get her CPA. The pay was something like 59K.

She did not want to get her CPA....so she took a job at a software company and made starting pay 38K a year. Then she moved on and got a job at a university and now makes 47K a year. This is in Boston.

I also have a cousin who has a CPA and does auditing in NY. He makes a good chunk of change. His mom said he made 78K a year, but he is stingy as hell.

Also, remember, getting your CPA means you need to renew your CPA license or whatever it is every so many years. The test is not easy and you need more classes than your normal accounting degree because of the credit hour requirements.

 

[amish]

Right now i work for Goodyear tire in one of their "Retreading" plants. I make decent money ie around 38K a year but i honestly don't want to do this the rest of my life. I've thought about going back to school for accounting and eventually becoming a CPA. My question is how much money do they make? Is the field crowded?

yes, decent to great money can be made. granted it is dependent on what you want to do. graduating with 150 hours should be your prerequisite as it takes that many credit hours to sit for the exam. take and pass the exam as quickly as possible. accountants are always in demand as long as you know something and aren't a tool.

public accounting isn't crowded. we are always looking for people that can put up with high stress, long hours, and crappy pay in the beginning. public accounting is a meat grinder though. of the people i graduated with that started in public accounting only a handful are left.

i cannot speak about corporate america.

 

[Hugo Drax]

Right now i work for Goodyear tire in one of their "Retreading" plants. I make decent money ie around 38K a year but i honestly don't want to do this the rest of my life. I've thought about going back to school for accounting and eventually becoming a CPA. My question is how much money do they make? Is the field crowded?

Do you even like accounting?

 

[Don Karnage]

Do you even like accounting?

Obviously or i wouldn't even be considering doing this.

 

[SandEagle]

why not consider the IT field? i know glorified helpdesk monkeys who getpaid 60k a year. do a two year associates and a few certs and you can instantly double from your current salary

 

[HNNstyle]

Take night classes at your local community college to ease yourself back into school and it's way cheaper then a university. That way you don't have to quit your job. If you decide to go full time when you transfer to a University, I believe the minimum tuition rate you can get is 10k a year but that really depends on what state you live in and where you want to attend a university.

 

[Via]

One of my dad's friends graduated from med school in his late 40's. Anything's possible if you really want to change your life.

 

[Hugo Drax]

why not consider the IT field? i know glorified helpdesk monkeys who getpaid 60k a year. do a two year associates and a few certs and you can instantly double from your current salary

But he likes Accounting.

 

[sactoking]

Im an auditor who's not a CPA and this is my experience:

Lots of people get a BS in Accountancy thinking that they will one day become a CPA. The vast majority of them end up as bookkeepers and AP/AR clerks. The CPA exam is tough, as in depending on the state you wish to practice in it can be more difficult than the bar exam. Your CE credits will take a fair amount of time and money to maintain. And in order to earn the designation you have to have hours under a current CPA. That can be tough; three of my coworkers have the requsite coursework and have sat and passed the exam but because we don't employ a CPA in our division they don't get the necessary CPA-supervised audit hours.

When I went to grad school I got my MBA in taxation accounting. I was in the graduate-level classes with all of the MAcc students. They all had plans to sit the CPA exam and were stressing about it big time.

I've found that you can do almost any CPA-level work without being a CPA if you know what to look for. I use my MBA in tax accounting with my specialized industry experience to audit specialized industry taxes and I didn't have to pay for a CPA or go through the stress. If there's a particular aspect of accounting that you like you'll find that most private employers will be interested in non-CPAs to work internally if they're adequately qualified. For all practical purposes a private company only needs a small handfull of CPAs on staff and the fewer "extraneous" CPAs they have on staff the better (less CE and other training to pay for).

I've also found that well-qualified non-CPAs have more upward mobility. CPAs are, in my opinion, the engineers of the business world. They get a bit more money than a non-CPA (or non-PE) but they're often stuck in the same job their whole lives. Because accountancy (like engineering) is semi-specialized they're often passed over for promotion as being "too valuable" in their usual duties. Additionally, many CPAs (like engineers) are viewed as not being adequately trained for continuing advancement and often require more schooling to advance.

If you are sure that you want to go to a "Big Four" or whatever firm and do independent audit then the CPA is helpful but honestly I believe that a more general (but still relevant) education plus specific experience is more flexible.

 

[JS80]

Obviously or i wouldn't even be considering doing this.

Curious your life choices lead you to a tire plant but now you want to go back to school to become an accountant. You realize you are now competing against a much more competitive field? Accounting itself is pretty broad in that the low is very low (i.e. an accounts payable clerk) and the high is very high (CFO).

What do you plan to do when you get your degree in accounting? Where do you want to be after 5 years? 10 years? There are many opportunities but you need a certain mindset and lots of patience.

 

[Dr. Detroit]

I'm a CPA
5yrs Big 4
4yrs top 75 regional firm
2yrs running IA/SOX at a new public

Money is very good, not so much the first 4yrs but once you make manager and have your CPA license the money begins to flow as you take on a lot more responsibility.

Your gonna need a BS Accounting from a good school in order to get hired a by a top 100 firm, and be at the top of your class to get an offer from the Big 4.

You do have a lot going for you in that you are older than the rest so University should not be nearly as difficult as it is for a lot of 18yr old who spend their time at Frats partying and spending mom & dad cash., When its your own money, you don't flake on school.

You will be bossed around by seniors who are 24 - 26yrs of age so I hope you like taking orders from young kids. Its tough on some, impossible for others. I spent 3yrs in the Army so was OK with it at 25 when I graduated.

Almost every mid 30's person I ever hired into public accounting washed out in 2yrs due to other life commitments, not easy to get someone 32 with a family to work 6 12hr days in a week and put in 80-90 hrs routinely.

The CPA license has gotten easier some say, harder others say. But its a 13hr long exam broken into 4-parts which encompasses obscure topics and covers about 3000 pages of material. Review courses are $2000, and the exam cost is about $1,000. Since only 10% pass all 4-parts on the first try budget another $1000 for retakes.

80hrs of CPE required every two years, mandatory 20 in year 1 now. 60hrs of it can be in general with 20 in Accounting & Auditing updates. The 60hrs is cheap, the 20 is a bit more spendy to get. If you are former Big 4 usually your Alumni status gets you free CPE. It does for me.

Its a tough career path - nothing comes easy without hard work though!

Good luck!

 

[dquan97]

I'm not a CPA
10yrs gov auditing

There is no benefit to having a CPA w/ the gov't so I've been procrastinating on taking the test. I have enough experience and units to sit for the test. I actually sat for the financial reporting test but didn't pass it.

At this point in my life (30s), I just want a regular 8hr/day job.

 

[Schadenfroh]

Skip it and go directly into lion taming:
http://www.youtube.com/watch?v=XMOmB1q8W4Y

 

[Buttzilla]

I'm a CPA
5yrs Big 4
4yrs top 75 regional firm
2yrs running IA/SOX at a new public

Money is very good, not so much the first 4yrs but once you make manager and have your CPA license the money begins to flow as you take on a lot more responsibility.

Your gonna need a BS Accounting from a good school in order to get hired a by a top 100 firm, and be at the top of your class to get an offer from the Big 4.

You do have a lot going for you in that you are older than the rest so University should not be nearly as difficult as it is for a lot of 18yr old who spend their time at Frats partying and spending mom & dad cash., When its your own money, you don't flake on school.

You will be bossed around by seniors who are 24 - 26yrs of age so I hope you like taking orders from young kids. Its tough on some, impossible for others. I spent 3yrs in the Army so was OK with it at 25 when I graduated.

Almost every mid 30's person I ever hired into public accounting washed out in 2yrs due to other life commitments, not easy to get someone 32 with a family to work 6 12hr days in a week and put in 80-90 hrs routinely.

The CPA license has gotten easier some say, harder others say. But its a 13hr long exam broken into 4-parts which encompasses obscure topics and covers about 3000 pages of material. Review courses are $2000, and the exam cost is about $1,000. Since only 10% pass all 4-parts on the first try budget another $1000 for retakes.

80hrs of CPE required every two years, mandatory 20 in year 1 now. 60hrs of it can be in general with 20 in Accounting & Auditing updates. The 60hrs is cheap, the 20 is a bit more spendy to get. If you are former Big 4 usually your Alumni status gets you free CPE. It does for me.

Its a tough career path - nothing comes easy without hard work though!

Good luck!

Pretty much nailed it on the dot.

Girl I'm currently dating got her MBA and past the first 2 exams when she graduated. Went to E&Y and stayed there for 6 years practically living out of hotels/motels.

It's pretty tough in the beginning but once you making senior accounting, manager and senior manager, she says it's gets better. But she stresses you must have no commitment other than work. You'll spend the first 2 years getting coffee, making 40k, being bossed around by seniors (many less educated).

As long as you have a clear goal, find the field you want to be in, you'll be okay. She left E&Y and now a senior manager for a major private equity firm, KKR or something. We love swapping stories cause we work in opposite fields, I'm in healthcare. But she says that everyone has to put in their dues and public accounting is one of the the hardest.

 

[Michael]

I'm a Chartered Accountant (Canada). Big 4 (KPMG). It was worth it for me and good accountants are in demand world-wide. If at all possible, go to a good enough school that you have a shot at working for a Big 4 firm.

Michael

 

[Schfifty Five]

I did my undergrad as Electrical engineering, worked for 4 years, then switched careers completely and went back to school for accounting.

I did my masters in accounting, graduated in 1.5 years, and then landed a job as an auditor for a local accounting firm. I just passed the FAR section of the CPA and hopefully will be done w/ the other sections within this year.

It wasn't easy and took a bit of time and a lot of money, but I think having this work experience with a CPA title will open a lot of doors for me in the future.

So in other words, it's not a bad idea as long as you are serious about it. Even during bad economies, accountants are always in demand, especially if you have a CPA.

 

[Schfifty Five]

I'm a CPA
5yrs Big 4
4yrs top 75 regional firm
2yrs running IA/SOX at a new public

Money is very good, not so much the first 4yrs but once you make manager and have your CPA license the money begins to flow as you take on a lot more responsibility.

Your gonna need a BS Accounting from a good school in order to get hired a by a top 100 firm, and be at the top of your class to get an offer from the Big 4.

You do have a lot going for you in that you are older than the rest so University should not be nearly as difficult as it is for a lot of 18yr old who spend their time at Frats partying and spending mom & dad cash., When its your own money, you don't flake on school.

You will be bossed around by seniors who are 24 - 26yrs of age so I hope you like taking orders from young kids. Its tough on some, impossible for others. I spent 3yrs in the Army so was OK with it at 25 when I graduated.

Almost every mid 30's person I ever hired into public accounting washed out in 2yrs due to other life commitments, not easy to get someone 32 with a family to work 6 12hr days in a week and put in 80-90 hrs routinely.

The CPA license has gotten easier some say, harder others say. But its a 13hr long exam broken into 4-parts which encompasses obscure topics and covers about 3000 pages of material. Review courses are $2000, and the exam cost is about $1,000. Since only 10% pass all 4-parts on the first try budget another $1000 for retakes.

80hrs of CPE required every two years, mandatory 20 in year 1 now. 60hrs of it can be in general with 20 in Accounting & Auditing updates. The 60hrs is cheap, the 20 is a bit more spendy to get. If you are former Big 4 usually your Alumni status gets you free CPE. It does for me.

Its a tough career path - nothing comes easy without hard work though!

Good luck!

Becker Review materials actually cost me nearly $4k and they say 20% pass on their first try.

 

[Dr. Detroit]

Becker Review materials actually cost me nearly $4k and they say 20% pass on their first try.

What a racket!

Yaeger CPA Review, Roger CPA Review, Gleim CPA Review are all great products that cost significantly less. Using the Wiley Books & CD test bank of questions is also good low cost option.

I've known the book smart kids who hit 90's on every part after studying for 60hrs, I've also known those with massive test anxiety, hard working and incredibly bright individuals who study for 200hrs on a section and fail with a 73 or barely pass with a 76.

The test has absolutely nothing to do with practical knowledge.

 

[Schfifty Five]

What a racket!

Yaeger CPA Review, Roger CPA Review, Gleim CPA Review are all great products that cost significantly less. Using the Wiley Books & CD test bank of questions is also good low cost option.

I've known the book smart kids who hit 90's on every part after studying for 60hrs, I've also known those with massive test anxiety, hard working and incredibly bright individuals who study for 200hrs on a section and fail with a 73 or barely pass with a 76.

The test has absolutely nothing to do with practical knowledge.

I agree.

 

[Don Karnage]

Everyone THANK YOU for the comments and replies. I truly appreciate all the advice and experiences you have posted.

I'm a CPA
5yrs Big 4
4yrs top 75 regional firm
2yrs running IA/SOX at a new public

Money is very good, not so much the first 4yrs but once you make manager and have your CPA license the money begins to flow as you take on a lot more responsibility.

Your gonna need a BS Accounting from a good school in order to get hired a by a top 100 firm, and be at the top of your class to get an offer from the Big 4.

You do have a lot going for you in that you are older than the rest so University should not be nearly as difficult as it is for a lot of 18yr old who spend their time at Frats partying and spending mom & dad cash., When its your own money, you don't flake on school.

You will be bossed around by seniors who are 24 - 26yrs of age so I hope you like taking orders from young kids. Its tough on some, impossible for others. I spent 3yrs in the Army so was OK with it at 25 when I graduated.

Almost every mid 30's person I ever hired into public accounting washed out in 2yrs due to other life commitments, not easy to get someone 32 with a family to work 6 12hr days in a week and put in 80-90 hrs routinely.

The CPA license has gotten easier some say, harder others say. But its a 13hr long exam broken into 4-parts which encompasses obscure topics and covers about 3000 pages of material. Review courses are $2000, and the exam cost is about $1,000. Since only 10% pass all 4-parts on the first try budget another $1000 for retakes.

80hrs of CPE required every two years, mandatory 20 in year 1 now. 60hrs of it can be in general with 20 in Accounting & Auditing updates. The 60hrs is cheap, the 20 is a bit more spendy to get. If you are former Big 4 usually your Alumni status gets you free CPE. It does for me.

Its a tough career path - nothing comes easy without hard work though!

Good luck!

Thank you FMR. I don't have any other life commitments like children or even a wife and i'm not looking to having children anytime soon. I'm looking to go in a different direction then my life currently is heading in and love being challenged and this as i see it will be a huge challenge.

Again all thank you. If i have anymore questions i will definitely be asking you all.

 

[onlyCOpunk]

Im an auditor who's not a CPA and this is my experience:

Lots of people get a BS in Accountancy thinking that they will one day become a CPA. The vast majority of them end up as bookkeepers and AP/AR clerks. The CPA exam is tough, as in depending on the state you wish to practice in it can be more difficult than the bar exam. Your CE credits will take a fair amount of time and money to maintain. And in order to earn the designation you have to have hours under a current CPA. That can be tough; three of my coworkers have the requsite coursework and have sat and passed the exam but because we don't employ a CPA in our division they don't get the necessary CPA-supervised audit hours.

When I went to grad school I got my MBA in taxation accounting. I was in the graduate-level classes with all of the MAcc students. They all had plans to sit the CPA exam and were stressing about it big time.

I've found that you can do almost any CPA-level work without being a CPA if you know what to look for. I use my MBA in tax accounting with my specialized industry experience to audit specialized industry taxes and I didn't have to pay for a CPA or go through the stress. If there's a particular aspect of accounting that you like you'll find that most private employers will be interested in non-CPAs to work internally if they're adequately qualified. For all practical purposes a private company only needs a small handfull of CPAs on staff and the fewer "extraneous" CPAs they have on staff the better (less CE and other training to pay for).

I've also found that well-qualified non-CPAs have more upward mobility. CPAs are, in my opinion, the engineers of the business world. They get a bit more money than a non-CPA (or non-PE) but they're often stuck in the same job their whole lives. Because accountancy (like engineering) is semi-specialized they're often passed over for promotion as being "too valuable" in their usual duties. Additionally, many CPAs (like engineers) are viewed as not being adequately trained for continuing advancement and often require more schooling to advance.

If you are sure that you want to go to a "Big Four" or whatever firm and do independent audit then the CPA is helpful but honestly I believe that a more general (but still relevant) education plus specific experience is more flexible.

I have a Masters in Professional Accounting, and a couple years experience under my belt, and I whole heartedly agree with this reply.

If you really like accounting, go ahead and get the degree, you don't have to do CPA or CA to be successful. Granted your pay will automatically increase, I think minimum salary here for CA's is 80 grand, and I started straight out of university at 53k.

The thing about just worrying about the general degree first is once you start working you can decide which area you enjoy a lot more, and focus your career on that. Hopefully a good opportunity at first will allow you to experience all facets.

CPA and CA will ultimately consume your life once you decide to undertake them. It's a lot of reading, and a lot of self study combined with working a fulltime job not to mention expensive.

Good luck to you.

 

[The-Noid]

My wife is a CPA. Has a MSA, worked for Big Four.

Overall, the money isn't great, about 60k for advisory (in 2007). She went into banking instead makes about 2x more in risk management/audit.

As for the test, overall it's not generally all that hard. People stress about it but I haven't known a single person that started that hasn't finished. We still hang out with quite a few people that are either her big four colleagues or MSA cohorts.

Having helped my wife study for the CPA and taking all three levels of the CFA (passed all three on the first try) both of us would agree that if you were going to take the time the CFA offers hugely more advantage from a salary standpoint and looks much better on the resume than a CPA unless you are in a very specialized position that requires a CPA.

I hate to sound like an ass but my wife spent between 100 and 120 hours on all sections (auditing is tough based on all the working papers info) and was basically told by the firm when she passed that the CPA had become a dime a dozen. They also in the past had offered a $5G bonus that was taken away in 2006 as "so many associates already had it."

Top 5 MBA > CFA > Top 25 Master's in Finance > MSA Top Tier > CPA >= Master's in Finance or MBA from a middle tier to top tier school school. from a degree standpoint.

If you have any of the other degrees people are going to assume you can pass the CPA in a matter of weeks, not months. The only reason to get a CPA is if you need it as a job requirement. The money in accounting is owning your own tax/audit service to $1MM+ revenue businesses or making partner at a bulge bracket or middle market firm. To make partner you are going to work like a dog and generally to get into those firms you only would need a CPA if you are in a tax position that requires it. Advisory has the highest early money, well they all have about the same late money.

Getting into accounting is great but you are in most jobs you would get, you are years away from making a whole lot more than 38k...

Edit: Just chatted with a friend who is a 5th year senior associate at a big four firm and she is at $65k with a CPA and MSA. If she makes manager, which she is on pace for this year, her salary goes to $80k. There just isn't really that much money in accounting anymore...given that she works 5, 12 hour days during the slow season and 6, 14 hour days during busy season.