Category: Accounting

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Accounting/Finance Majors: CPA, CMA, CFP, CFA

If you are or considering becoming an accounting and/or finance major, you have probably heard a lot of acronyms thrown around in reference to different professional certifications (read: exams) that you can acquire. This article is aimed at breaking down some of the confusion and clarifying what each one is. This is the first step in deciding which one(s) may be for you.

  1. CPA- Certified Public Accountant. This is the flagship certification for those who want to actually be accountants. Professions include tax and audit, though the CPA is widely enough respected that many corporate lawyers, business consultants, tax attorneys, and personal financial planners have it as well. The CPA is quite difficult with four 4-hour exams which must be passed within 18 months of each other. Pass rates for each of these exams is between 40-60%, though Grove City College students tend to have much higher pass rates. The exam sections are audit, financial accounting and reporting, tax and regulation, and business environment and ethics. This is a very valuable certification, but you have to really want it. If you are considering or would like the option to take the CPA, look into your state’s CPA eligibility requirements for undergrad course work. Some states (such as CO) require you to have specific courses under your belt that the College does not include in graduation requirements.
  2. CMA- Certified Managerial Accountant. This is similar to the CPA, but with more of a managerial emphasis. This means that costing, cash flow, inventory, and those types of issues are more heavily emphasized. The CPA is incredibly broad, the CMA is less so. Professions are similar to those of CPAs; financial analyst, managerial accountant, corporate controller, financial manager, and many others.
  3. CFP- Certified Financial Planner. Usually, to use this certification you must also pass other financial licensing exams such as the Series 6 or Series 7. A CFP works with individuals and families to provide financial solutions to their problems and to grant them added security. A CFP works in a very personal role with their clients and has a lot of responsibility for giving them good recommendations. CFPs understand finance and financial products, are empathetic and caring, and have strong people skills.
  4. CFA- Chartered Financial Analyst. The CFA exam is sort of like the CPA of finance. There are several exams (called levels) which must all be passed. CFAs become experts in finance, and often work as asset or portfolio managers, financial managers, risk management experts, or consultants.

All of these paths provide excellent career opportunities, but you may fit one of them more than others. Spend some time reading about each one, finding out who you may know with a background in one of these areas, and considering your end goal to help you decide!

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Big 4 Internships and the Pandemic Impact (Part 4 of 4)

This is part 4 of a 4 part post. If you already saw the part prior, go ahead and skip over the remainder of this introductory paragraph since it is the same as that in the others. During the summer of 2020, in the heat of the pandemic, I had a rare opportunity: I was part of Ernst & Young’s first fully virtual internship experience. This post is geared towards students looking at interning at the “Big 4” in the coming years, so this post is particularly suitable for current or prospective accounting majors. But, if you are not considering accounting, there is still something here for you.

4. The reality

In spring of 2020, I found out that my internship would be 100% remote. While I was disappointed, I was impressed with how well EY was able to adjust their plans in such a dramatic way on such short notice. The program was shortened by about three weeks and the start date shifted back by about a month. I was mailed a laptop (and everything that came with). Within the first day of the internship, thousands of new interns were up and running on EY’s remarkably advanced technological platforms. We were provided with training, broken down into groups, assigned mentors and peer-buddies (one of the greatest things about EY), and put on client-engagement teams. We were given a few weeks to work with our assigned client engagement teams, and then we were given a week to work through EY Badges to earn the Intern level badge. The final week of the internship had 8-10 interns from all service lines were paired with a coach to work through a real business problem for a client, and compete to see who could offer the best plan, slide deck, and presentation.

While the internship did not look the way I expected it to, being remote showed me an even clearer picture of how EY works. They were off knocked off kilter and navigating foreign territory, and while they could have canceled the internship or cut it down to merely the training portion, they proved that people matter and displayed the power of the organization to rally in hard times and unwaveringly meet objectives.

Disclaimer: I do not represent nor am I speaking on behalf of any of the Big 4; all information in this article is subject to change; the intent of this article and all following posts on the same subject is to help inform students, not to advise their career decisions.

 

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Big 4 Internships and the Pandemic Impact (Part 3 of 4)

This is part 3 of a 4 part post. If you already saw the part prior, go ahead and skip over the remainder of this introductory paragraph since it is the same as that in the others. During the summer of 2020, in the heat of the pandemic, I had a rare opportunity: I was part of Ernst & Young’s first fully virtual internship experience. Depending on how you look at it, this is either a scar in my past or a badge of accomplishment. I certainly view it as the latter, but I did not initially. This post is geared towards students looking at interning at the “Big 4” in the coming years, so this post is particularly suitable for current or prospective accounting majors. But, if you are not considering accounting, there is still something here for you.

I discussed previously what companies the “Big 4” are and what they do, and I covered why internships there are so significant. This post is aimed at relating my experience from the summer of 2020, and discussing how it was shaped by the pandemic.

3. My expectations

My relationship with Ernst & Young started long before my first day as an intern; I met a recruiter on campus for a mock interview, and knew from that meeting that EY was a place I wanted to work and grow. As I progressed through the application and interview process, everyone that I spoke to or exchanged emails with further affirmed my decision. When I applied, interviewed, and accepted my offer (all before Easter in 2019), no one knew how the world would change over the coming year. I went into this expecting to be sitting in a recently remodeled office in one of Denver’s tallest buildings with a view of the city and the mountains. I expected intern activities after days in the office, and opportunities to visit client sites and really see a “day in the life of an auditor.” More importantly I expected to be challenged, pushed, taught, mentored, and exhausted.

Disclaimer: I do not represent nor am I speaking on behalf of any of the Big 4; all information in this article is subject to change; the intent of this article and all following posts on the same subject is to help inform students, not to advise their career decisions.

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Big 4 Internships and the Pandemic Impact (Part 1 of 4)

During the summer of 2020, in the heat of the pandemic, I had a rare opportunity: I was part of Ernst & Young’s first fully virtual internship experience. Depending on how you look at it, this is either a scar in my past or a badge of accomplishment. I certainly view it as the latter, but I did not initially. This post is geared towards students looking at interning at the “Big 4” in the coming years, so this post is particularly suitable for current or prospective accounting majors. But, if you are not considering accounting, there is still something here for you.

1. What are the “Big 4”?

The “Big 4” is a term used to refer to the four largest global accounting firms in the world. The firms, in no particular order, are EY (Ernst & Young), KPMG (Klynveld Peat Marwick Goerdeler), PWC (Price Waterhouse Coopers), and Delloite. While they differ in what portion of their business comes from which service line, they are known for high performance in three key areas: audit, tax, and consulting. Audit is also referred to as “assurance,” because the service line is geared towards assuring clients and users of clients’ financial statements that the statements are free from material misstatement. In other words, we make sure they did their accounting right. It is required by law that public companies get audited, and the largest ones rely on the Big 4. Consulting is pretty much what it sounds like – consultants are hired by clients to lend a set of fresh, expert eyes to business operations and decisions. For example, if a client is considering a new operational strategy, they may ask a team of Big 4 consultants to analyze, evaluate, and help make the decision. Tax is also fairly intuitive – public companies have to navigate a complex tax system whether they are US only, foreign, or multi-national; they also deal with often complex transactions (such as mergers or acquisitions) that have powerful tax implications. In short, successfully navigating the tax system requires expertise and planning, and the tax service line at Big 4 companies exists to provide that.

Disclaimer: I do not represent nor am I speaking on behalf of any of the Big 4; all information in this article is subject to change; the intent of this article and all following posts on the same subject is to help inform students, not to advise their career decisions.

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Business Capstone Course: Business Policy and Strategy

Business Policy and Strategy is a Capstone Course at Grove City College, which means that all Business majors are required to take the course. Professor Richard Kocur teaches the course and relates real-world concepts from his time in the business world. This course gives an outline of the different strategies that are used within management and teaches how to be an effective manager.

Certain courses are required for all Business majors, such as Principles courses in Finance, Accounting, Management, and Marketing. Business Policy and Strategy brings together topics learned in each Principles class. I enjoyed that students in this course come from different Business majors because it helps to see the business world through many different perspectives. Since my major is Marketing, I tend to only think about the marketing side of a business. This class enables me to see things from the different viewpoints of the different majors within the Business program, such as Finance or Accounting.

There is a lot of group work in the class that helps you to master the material taught in class. Each class, the professor lectures about a topic, and an assignment typically follows the new material. I also enjoyed being a part of several group presentations throughout the semester. These group presentations help you to learn and apply what is taught in class and in class readings. These projects have also increased my confidence with group work, which is an essential aspect of the business world. In addition to a heavy emphasis on group work, this course features some individual assignments and two exams.  Seniors take this course because it ties everything together that is learned in other Business courses at Grove City College. Business Policy and Strategy is definitely a course that should motivate you to look forward to your senior year as a Business major!

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Caleb Pierson: From Career Fair to the Workplace

Caleb Pierson: Video Interview

Post college plans? That may seem like a century away, but it will be here sooner than you think. Luckily, Grove City College prepares its students through excellent academics and an outstanding Career Services Office that gets you in contact with potential employers. Do not let the thought of a post college career plan stress you out. Caleb Pierson, a senior pursuing a bachelor’s degree in Accounting and Finance at Grove City College, explains how he was able to use the CSO and its annual Career Fair to land an awesome summer internship, full of great experiences!

Caleb interned at an accounting firm in Pittsburgh, PA called Grossman Yanak and Ford. He was able to put to use the information he learned in the classroom, demonstrate proper workplace behavior, and gain useful insight on how to interact with clients and coworkers. Caleb would absolutely recommend participating in a summer internship program to his peers and incoming students because of the experience he gained, and the potential job offer that could follow upon completion of the internship.

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ACCT 410 | Contemp. Accounting Theory/Practice

While the names of some college courses seem quite up-front and self-explanatory (i.e. foundations of sociology, principles of accounting, etc…) some courses are quite the opposite. This means you look at the course code, read the name aloud, and you’re still unable to even draw an intellectual guess at what the class could cover or what the purpose of the course could be. ACCT 410 was one of those courses for me. It took me until my junior year to figure out what the class even was, and my senior year to find out the importance of this course to me. In order to help inform you about this very valuable accounting course that Grove City College offers, and to prevent you from suffering the same confusion I encountered, I have written this for you, the reader, the future Grover, the future certified public accountant.

As you may have heard, the CPA certification is a great certification for anyone going into the field of accounting, whether you are planning to go into public accounting or not. This being said, would it not be nice to have the opportunity to take a class specifically created to assist you in studying for the CPA exam? That is exactly what ACCT 410 does. It was created to help students work through the material covered on the Financial Accounting & Reporting (FAR) section of the exam. It allows students the opportunity to work with CPA review software that covers topics found on the actual CPA exam and in a format similar to that of the exam. The significance of this course is not only found in the value provided by the course material and the topics covered, but also in the ability of the course to assist students in getting over the biggest hurdle in studying for the CPA exam – simply starting to study because students get the opportunity to slowly get used to the format and process of preparing for the CPA exam.

While this may not seem extremely significant to you, take it from a senior who will be sitting for this challenging exam in the upcoming months, this class is a blessing in disguise. Yes, a course like this is intimidating to think about and sign up for, but once you immerse yourself in the CPA review software and material, and begin to study, this will help you greatly in the following months and years as you continue your studies and one day obtain your CPA certification.

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Intersession at Grove City College

Every year students at Grove City have the opportunity to take intersession courses provided by the College. An intersession course is taken for two-weeks, four hours a day, six days a week. Grove City offers these classes on-campus, and a select few are offered online. Intersession takes place in the winter, the last two-weeks of winter break, and in the spring, the first two-weeks of summer break. Not every class is offered as an intersession option, but many are, especially a lot of fundamental courses such as a science, accounting, math classes, etc., so students can get them out of the way before their “real” semester begins.

Sophomore Marketing major Gretchen Basham decided to take an intersession course this year, and she took hers during the winter session of 2019. Gretchen took Accounting 202, a required course for all Marketing majors, taken after completing Accounting 201. Gretchen said she decided to do this course for intersession because she wanted to get it out of the way in order to lighten her schedule for her Spring 2019 semester, and she knew she was not necessarily skilled or interested in this topic, so doing it for two-weeks straight was worth it to her in order to get it out of the way for her future schedule.

Gretchen said that she expected intersession to be a simple way to get a class done in two weeks; however, she said she found the class to be challenging, but intersession proved to be rewarding. Although a good way to take a class, she found it to be more labor intensive than she was expecting but said it could vary depending on the course being taken.

Gretchen said one very helpful thing about taking an intersession course is that it forces you to focus specifically on that topic and course and devote all your time to it because that is the only thing you have going on for two weeks. She also said this forced her to learn all the topics in the class, in order to do well, which allowed her to achieve success.

Gretchen said she would do intersession again if she knew there was another class she was not particularly interested in and knew she would want to get it done in the span of two weeks. She said intersession was very helpful to her and would recommend doing it with friends because it can be more fun and exciting when everyone else is gone from campus, and you can use your friends as resources when you may need some help.

An intersession experience can vary drastically depending on the course being taken, if you are with friends, if you are living on campus, commuting for your intersession experience, or in the case of the online intersession, staying at home to complete your course.

Grove City College provides many opportunities to allow its students to get ahead, and potentially add more flexibility to their schedules for future courses and semesters. There are also often many intersession traveling opportunities, where faculty-led trips go abroad, and students can earn credit while doing so.

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Audit Internship Tips III: Three tips to Help You Succeed!

“An auditor’s job is to perform tests of a company’s financial statements and perform other various assurance acts to provide their clients and their client’s stakeholder’s confidence in the preparation of financial statements and confidence in the processes in place at a client’s location. ”

In having performed an audit internship, I would like to believe that I worded this brief description of an auditor’s duties in a way that not everyone would understand, and if you are one of those who does not understand, there is no need to fret. It will come to you. The vocabulary I used, which is hopefully what made my description harder to understand (if it was the way I write what do you expect? I am an accounting major, not an English major), leads to my first audit tip. When you arrive on the first day of your internship, take notes on the vocabulary and acronyms commonly used at the firm. In taking notes, it will provide you more confidence and make you more comfortable in day to day conversations with fellow employees of the firm and their clients. Also, by making it a point to learn this vocabulary and lingo, it will better prepare you to be successful in your internship and in your career as an auditor. One final note in applying this strategy of close observation and use of audit vocabulary is do not be afraid to ask what something means. Most firms love when incoming staff and interns ask questions, so stand out of the crowd and ask!

My second, and equally crucial tip is to refresh your Microsoft Excel, Word, and PDF skills. This is crucial because most firms’ software simply uses these applications for documentation for their work papers. So, by keeping up to date with your knowledge of these applications and by continuously learning new formulas and ways to do tasks in these types of applications, your efficiency on the job will be increased and will surely impress your employer. Even if you refresh your skills and it turns out your firms’ software does not use these applications, these are applications that you will commonly use for tasks outside of the audit, so comprehending how to perform tasks quickly via these applications will make you more efficient and more effective in work and in life.

My third tip for a soon to be (or not soon to be) audit intern would be to not fall into the common college student mindset and think that what you learned in your first two to four years of college was a waste just because a lot of the skills used by an auditor on a daily basis do not seem to implement much of what you learned. When you find yourself in conversation with fellow engagement team members, this knowledge learned throughout your time in college should provide you insight on what is the correct way to account for a specific situation or what a general journal entry to record depreciation should look like. Although you may find yourself during the internship questioning what you learned throughout your time in college and its application to this potential job opportunity you are/will be working at, there will be glimpses of times where you find yourself in a discussion being able to contribute something to the conversation or being able to have some insight on the topic to help the team understand some entry or to catch a potential issue. It is these small things that can generally make or break an engagement and if you keep in mind what you have learned over the past few years, this will contribute to your success as an auditor.

These are three of my main tips I would give to anyone pursuing an internship in the field of audit. With this being said, there are many more resources out there for current and future auditors. So do not be afraid to search the web or even look into and keep up with the current Accounting Standard Updates (ASU). Also, if you are interested in reading about more tips in audit or college or any topic let us know! Feel free to comment on this blog or to contact the blog via the contact tab with your own questions. We would love to help!

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Audit Internship Tips II: You Are Not Alone

So, you just read a whole blog post and you have not learned anything? You are right where you were before the start of the blog and are still (A) confused what audit is and reading this for future reference or (B) waiting for some tips for that internship you start next month.

No matter which group you may fall into, you are probably a bit confused and slightly annoyed, but this is normal. This is all part of the process of being an audit intern. You start unsure, then get stressed with all of the pressure of interviews and networking, then you finally get an offer and you become dazed and confused about what you just got yourself into. That is what I am here for, though. In providing tips, I hope to not just give you the general speech telling you that there is no way to prepare for it (that I noted in the previous blog). Instead, I hope to supply you with some useful advice and necessary skills, which will supply you the opportunity to be successful in this internship you will receive (or have already received).

So, let us finally get started. You have this internship and you want to be prepared and ready to take it on and provide the employer your best effort, but how do you do that and what is audit? For those of you who do not know what audit is, the best place to start this journey is to first describe and discuss what an auditor does. An auditor’s job is to perform tests of a company’s financial statements and perform other various assurance acts to provide their clients and their client’s stakeholder’s confidence in the preparation of financial statements and confidence in the processes in place at a client’s location. It is with this definition that we can move on into the final blog of the series and really dig into both what this career path known as audit is and FINALLY hear the precious tips you have been waiting quite patiently for.