Most of this blog’s readers know that I am an Accountant. Trained in school as one, practiced as a CPA, and willing to proudly explain, at the drop of a hat or visor, the difference between finance people and accountants (which ranges from golf skills to dealing with details).
Over the years, my blog has touched on various aspects of accountancy. These have included the need for accountants to become more strategic and big picture oriented. And the fact that accountants get hired out of college at a much higher rate than general marketing or communication majors. I even advise young people going to college to consider accounting as a career.
But now there is a major crisis! The Wall Street Journal reports that there is a major shortage of accountants for firms to hire. Obviously the young people going to school have not been listening to me. Companies, such as Johnson and Johnson, took a year to fill a junior accounting position. The unemployment rate for experienced accountants and auditors is listed at 2.5%, about half of the unemployment rate for all workers.
But the news is not all grim. Schools, not just me, are pushing accounting as a career and recently the number of accounting graduates hit a record level, which was up 7% from a few years ago. Major accounting firms like PwC are encouraging high school students to enter college accounting programs. PwC probably has a couple job openings due to their “performance” at the Academy Awards this year!
But, in all seriousness, accounting is a great career for any young person to consider. Some people ask me, don’t you need to be great at math? Answer, no. Accounting is more about understanding concepts and how to view numbers, than it is to work with numbers. And, as I have said before, all businesses need accountants-small, private ones; big, public ones; even government and not-for-profits. All organizations have budgets, financial records and reports and thus need accountants.
Go for it!
Sometimes I’ve thought that I should’ve been an accountant, because I’m good at math (though I guess that’s not necessary). 🙂
I love your article. It’s completely ‘on spot’ for the way future MBA students are now tested.
The content of the GMAT (Graduate Management Admission Test) was expanded within the last few years. The new questions require the ability to synthesize the numbers in a diverse set of tables, charts, graphs, and text articles, which indicates, as you said, that accounting is more about understanding concepts and how to view numbers as part of a big picture, rather than how to do math.
The talent to grasp how the numbers fit into the big picture is a talent that’s rare and hard to test.
On all of the standardized tests, I also wish that the ability to collaborate was tested, too.
There’s a wonderful project called the spaghetti marshmallow challenge that we did to build teamwork at a past job of mine. The idea was to take uncooked spaghetti, string, masking tape, and a marshmallow, and build a tall structure that would support the marshmallow.
Whichever team of 4 built the tallest structure in 18 minutes, won.
As I recall, kindergartners (and architects) did the best, and business school graduates did the worst.
I appreciate your helpful insights and your inspiring and enthusiastic posts.
P.S. This Ted Talk on the spaghetti marshmallow challenge is hilarious:
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