Accounting for dummies
January 10, 2016 10:08 AM Subscribe
I'm considering making a career change in the next 2-4 years. I'm curious about entering accounting, but there are so many different types of accounting, different degrees/diplomas related to accounting, and places you can go with accounting! It's wonderful to read about all these opportunities, but completely overwhelming. I wouldn't know where to begin to find an area of accounting that would suit me. Can I get a little more clarity on the profession and where I could potentially go in the field?
For example, I find myself really confused by the different types of accountants. I'm in Canada and we have CAs, CGAs, CMAs. What exactly is the difference between the work that they do and their training?
And then in terms of schooling, it looks like I could get a Bachelor of Commerce with an Accounting major, Bachelor of Business Administration in Accounting, or just general accounting courses.
Most importantly, with all these options, how would I know what type of accountancy or education is right for me? I've read online that because I'm in my late-20s, working with the "Big 4" is seemingly not an option for me. Is that the only way to become an accountant? Am I too old to become an accountant?
Although, now I'm wondering, that if I have so many questions about the field... can it be right for me? I guess, we'll see!
For example, I find myself really confused by the different types of accountants. I'm in Canada and we have CAs, CGAs, CMAs. What exactly is the difference between the work that they do and their training?
And then in terms of schooling, it looks like I could get a Bachelor of Commerce with an Accounting major, Bachelor of Business Administration in Accounting, or just general accounting courses.
Most importantly, with all these options, how would I know what type of accountancy or education is right for me? I've read online that because I'm in my late-20s, working with the "Big 4" is seemingly not an option for me. Is that the only way to become an accountant? Am I too old to become an accountant?
Although, now I'm wondering, that if I have so many questions about the field... can it be right for me? I guess, we'll see!
I'm in Canada and we have CAs, CGAs, CMAs. What exactly is the difference between the work that they do and their training?
These all used to be separate designations, but they recently unified into "CPA". However they still retain some differences, as only the equivalent of the old CAs can sign as auditors of financial statements. You can refer to the details on the CPA Canada website: https://www.cpacanada.ca/en/become-a-cpa/pathways-to-becoming-a-cpa
I became a CA in my late 20s/early 30s, and if you want the Big 4 path you are definitely not too old; however you may not be willing to put in the working hours required (I wasn't, though I know others my age who did follow that path). However there are many other options open to you, including provincial or federal government.
As for degrees, any Bachelor degree will get you on the path to a designation - don't get hung up on the particular name. Where are you located? If you already have a Bachelor's degree in a different field there are also some Master's programs that can lead to a designation.
You are definitely not too old. I went back to school for a second Bachelor's degree in Commerce/Accounting at age 25, and it was the best (professional) decision I ever made. I am not so up to date on the designation path anymore (since the unification), however feel free to memail me if you have any other questions or just want to chit-chat about the field.
posted by barnoley at 12:24 PM on January 10, 2016
These all used to be separate designations, but they recently unified into "CPA". However they still retain some differences, as only the equivalent of the old CAs can sign as auditors of financial statements. You can refer to the details on the CPA Canada website: https://www.cpacanada.ca/en/become-a-cpa/pathways-to-becoming-a-cpa
I became a CA in my late 20s/early 30s, and if you want the Big 4 path you are definitely not too old; however you may not be willing to put in the working hours required (I wasn't, though I know others my age who did follow that path). However there are many other options open to you, including provincial or federal government.
As for degrees, any Bachelor degree will get you on the path to a designation - don't get hung up on the particular name. Where are you located? If you already have a Bachelor's degree in a different field there are also some Master's programs that can lead to a designation.
You are definitely not too old. I went back to school for a second Bachelor's degree in Commerce/Accounting at age 25, and it was the best (professional) decision I ever made. I am not so up to date on the designation path anymore (since the unification), however feel free to memail me if you have any other questions or just want to chit-chat about the field.
posted by barnoley at 12:24 PM on January 10, 2016
Accounting is a pretty handy field, in that just about any industry from small shops to huge non-profits need one. So it's not too hard to find work. There are no longer three designations in Canada, they are all CPA's now. The path has been streamlined between all of the legacy routes, and I'm pretty sure you don't need to do the articling anymore, so don't worry about your age. Spend some time reading the link above to figure out where you're at.
For schooling - getting a degree is mandatory. I found it easiest to major in general commerce, but took most of the courses from the major of accounting stream. Basically tailor the courses you take to the CPA requirements so you're not repeating any. The reason I didn't major in acct is because they wanted me to take courses extra to the CPA curriculum, and believe me you don't want to take more acct courses than necessary. You can get a degree online, through U of Athabasca and Laurentian and probably others, but it's much faster to plow through at least a year or two full time, finances permitting. Yes the courses are all good, yes, you need to be very self motivating to even consider online courses, but 1) you can keep working while you study 2)in my experience employers are a bit impressed with the dedication that requires. But it's slower than full time.
In my experience, (Calgary), Big 4 firms are great if you really want to be an auditor, or stay with them for a career. Otherwise it's not that much of a plus, nor is it necessary for a career path. I find all the articling auditors that come in to do our audits are very inexperienced, have no idea what they're doing, and are doing rote work for hours without any understanding of how and why from the questions they ask. I'm sure they have oversight from senior experienced team leads, but they are not onsite most of the time. So the students work insane hours, ask questions they don't understand the answers to, have no industry knowledge (oil and gas), and I sincerely hope that path to designation dies a quick death.
For accounting it helps to be decent at math, although not calculus level, and be generally good at thinking things through. There aren't too many areas of specialization when you first graduate, they expect you to have the basic foundational knowledge of the concepts and theory, and specialization comes later. You will be able to, in theory, do anything accounting related at an entry to intermediate level. By the end of studies you'll have a much better idea of where you want to be, if auditing or cost accounting is your thing. To be an actuary also requires a degree in Canada, and both paths are similar unless you already have one.
posted by tatiana131 at 12:29 PM on January 10, 2016
For schooling - getting a degree is mandatory. I found it easiest to major in general commerce, but took most of the courses from the major of accounting stream. Basically tailor the courses you take to the CPA requirements so you're not repeating any. The reason I didn't major in acct is because they wanted me to take courses extra to the CPA curriculum, and believe me you don't want to take more acct courses than necessary. You can get a degree online, through U of Athabasca and Laurentian and probably others, but it's much faster to plow through at least a year or two full time, finances permitting. Yes the courses are all good, yes, you need to be very self motivating to even consider online courses, but 1) you can keep working while you study 2)in my experience employers are a bit impressed with the dedication that requires. But it's slower than full time.
In my experience, (Calgary), Big 4 firms are great if you really want to be an auditor, or stay with them for a career. Otherwise it's not that much of a plus, nor is it necessary for a career path. I find all the articling auditors that come in to do our audits are very inexperienced, have no idea what they're doing, and are doing rote work for hours without any understanding of how and why from the questions they ask. I'm sure they have oversight from senior experienced team leads, but they are not onsite most of the time. So the students work insane hours, ask questions they don't understand the answers to, have no industry knowledge (oil and gas), and I sincerely hope that path to designation dies a quick death.
For accounting it helps to be decent at math, although not calculus level, and be generally good at thinking things through. There aren't too many areas of specialization when you first graduate, they expect you to have the basic foundational knowledge of the concepts and theory, and specialization comes later. You will be able to, in theory, do anything accounting related at an entry to intermediate level. By the end of studies you'll have a much better idea of where you want to be, if auditing or cost accounting is your thing. To be an actuary also requires a degree in Canada, and both paths are similar unless you already have one.
posted by tatiana131 at 12:29 PM on January 10, 2016
As mentioned above in the thread, the designations have merged into a single CPA title and plenty of articling opportunities now exist outside of the "Big4"/accounting firm path.
I am going through the articling process right now (have completed bachelors and masters in accounting as well as written all the CPA exams) at a Big 4 firm in Toronto so feel free to memail with any specific questions or if you just want to chat about the various paths new grads take in getting their designation.
posted by Danniman at 4:17 PM on January 10, 2016
I am going through the articling process right now (have completed bachelors and masters in accounting as well as written all the CPA exams) at a Big 4 firm in Toronto so feel free to memail with any specific questions or if you just want to chat about the various paths new grads take in getting their designation.
posted by Danniman at 4:17 PM on January 10, 2016
One thing you may want to consider is whether you're committed to a career as a CPA or would be open to working in accounting without the professional designation. Many colleges offer shorter programs that will give you a certificate in accounting and give you exposure to basic accounting principles and processes.
Many businesses and small accounting firms employ a wide variety of people in their accounting departments who are not qualified accountants. There may be a limit on how high you could climb an organizational ladder without the designation, but that doesn't mean you can't have a challenging and rewarding career. In my experience, it's easier in smaller companies to advance higher without a designation by demonstrating a desire to learn and develop. Larger enterprises often have policies requiring designations for certain roles. YMMV
posted by bkpiano at 6:20 PM on January 10, 2016
Many businesses and small accounting firms employ a wide variety of people in their accounting departments who are not qualified accountants. There may be a limit on how high you could climb an organizational ladder without the designation, but that doesn't mean you can't have a challenging and rewarding career. In my experience, it's easier in smaller companies to advance higher without a designation by demonstrating a desire to learn and develop. Larger enterprises often have policies requiring designations for certain roles. YMMV
posted by bkpiano at 6:20 PM on January 10, 2016
« Older There are only bad options; which is the best one? | My apartment smells like rotten food. How can I... Newer »
This thread is closed to new comments.
posted by peacheater at 10:25 AM on January 10, 2016