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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 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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The Average Grade Breakdown

I remember being a senior in high school and wondering how different college would be from high school. Often, I wondered how much more difficult it would be, what the classes would be like, and how the grading system would work for each class. It was terrifying to come to college because I did not know what to expect. I was especially nervous about the academics. After the first day of classes my freshman year, I was much more confident and comfortable about how I would perform academically because there were no major shocks or surprises about what homework and tests would look like in my classes.

Based on my own experience in Marketing classes, the college grading system is not much different than in high school. On the first day of class, each professor will hand out a syllabus that breaks down every point and how your grade will be impacted by different assignments and exams. Typically, the grading systems in the classes that I have taken have been divided up based on a points system. For example, many professors score their entire courses out of 1,000 points, and the syllabus breaks down where every point comes from.

Usually there are two exams – a midterm and a final – but some classes may have three or even four exams. I have never taken a class that had more than four total exams. Exams are usually the biggest chunk of your grade. Most exams that I have taken were worth about 15-25% of my total grade. Besides exams, a large amount of points typically come from group/individual projects. Marketing courses tend to be heavy on group work. Many classes have quizzes once or even twice a week. If you are lucky, occasionally a class will give participation points. Participation points can be a huge help to your grade because they are fairly easy points, as long as you have good attendance and are active in class discussions. One other large chunk of your grade usually comes from papers, with most classes assigning at least one paper. Extra credit is pretty rare, but occasionally a professor offers bonus points for an extra assignment or guest lecture attendance.

Very few classes that I have taken have offered any kind of points for homework, but some classes do assign homework and reward you with points if you complete it. Overall, the college grading system is nothing to worry about and it is quite similar to high school. The important thing to remember is to try your hardest on every assignment.

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The Value of Projects and Presentations

As a Business major, there is a heavy load on individual and group projects and presentations. Most classes have at least one project and many classes have several projects each semester. As a senior Marketing major, I recently have been reflecting on the different projects that I have worked on while at Grove City College. It is important to be comfortable with giving presentations as a Business major.  Some projects I enjoyed more than others, but every project teaches you something. With every presentation you give, you get better and better at public speaking. Plus, it makes you more confident. From the time when I was a freshman until now I have grown so much in my confidence, especially with public speaking. I used to be very nervous to deliver a presentation to a class, but now that I have done it so much, I feel much more confident and I am not nearly as nervous. My favorite project that I ever worked on (and later presented) was in Risk Management and Insurance, which is taught by Dr. Wayne Biddle. Before the class, I had no idea what risk management was and knew very little about insurance. As the course went on, I learned more and more and by the end of the course I not only mastered the material, but my interest in the subject grew. We had a big project for the class where we had to take photos of “risks” that we found outside of the classroom and then do an analysis of the risks. This project was one of my favorites because it really made me think beyond the scope of the hour and fifteen minute class. The material was so applicable that the project was actually a lot of fun. By the time I finished the project and presented to the class, I felt like I learned the material that I learned in class so much better now that I was able to apply it to real life. Projects and presentations are all about what you make them to be. The more work and effort you put into them, the more you will benefit from them and learn new skills. My suggestion is that you take advantage of projects because there is an opportunity to learn so much.

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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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Life Changing Electives: The Seminar in Life Management

The Grove City Business Department is helping students of all majors start their post-collegiate career off right with the Seminar in Life Management. This very reasonable and manageable 1-credit elective teaches students the importance of employment and benefits decisions, savings, investments, and budgeting. By the age of 30, you will have made nearly 90% of the important financial decisions that will make or break you.

As a Finance major, I can appreciate the valuable advice that Dr. Powell has regarding savings and investments. Topics explored in this regard include: ROTH IRAs, tax deferred annuities, index funds, and many more options.

2 Corinthians 9:7-8 says, “You must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. For God loves a person who gives cheerfully. And God will generously provide all you need. Then you will always have everything you need and plenty left over to share with others.” Tithing and charity is a big part of this course as well. It is important to recognize the important things in life. Only 30% of Americans said they were happy in a recent poll. There is no amount of wealth that can mirror the satisfaction that a God-centered life provides.

Through my seminar project, I realized that planning isn’t everything in the key to a successful financial future. On the back of U.S. currency you will find the phrase “In God We Trust.” It is important to remember to honor this. Many Americans alternatively live by the phrase “In Money We Trust.” There is no amount of planning that can parallel God’s plan. What He has in store for my life may be very different from what I have in mind. I can react to financial parameters and industry standards, however, I must also prepare to alter my plan based on His plan.

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The Extra Credit Opportunity That Influenced My Business Career

When a professor announces that there is a guest speaker extra credit opportunity, it usually does not matter who the speaker is or what the speaker is going to talk about. Most students attend simply to get the points in hopes of helping their grade in the class. One of my Marketing Professors, Professor Havrilla, announced in my Market Research class that there was an upcoming extra credit guest speaker opportunity. The next day, I went to the designated room and I did not even take the time to investigate who the speaker was or what he was going to talk about. Like many students, I just figured I would attend for the points. Within a minute after the speaker was introduced, I was highly intrigued. The speaker was Jack Kopnisky, a 1978 Grove City College Alumni. Dr. Kopnisky is from Manhattan and is the President and CEO of Sterling Bancorp. He has a successful history of transforming businesses.

Under his leadership, Sterling Bancorp grew from $3.2 billion in assets in 2011 to $32 billion in assets in 2018 (my.gcc.edu). Needless to say, he is a pretty successful guy. He offered some business advice and centered his presentation around those topics. He listed a few attributes that all successful people are, and it was very fascinating to hear. He said that successful people work harder than everyone else. Successful people read everything and keep up with current world events. Successful people are never satisfied; they always want to find ways to grow and improve. Successful people set goals. Successful people make things happen. The advice and insight that Dr. Kopnisky offered was so inspiring and it changed the way that I go about daily life as a business major. It changed the way that I view challenges and it inspired me to work harder than ever. I will always keep the things he said in the back of my mind as I go into my business career next year. So next time you can get some extra credit, my advice is to appreciate the opportunity and try to learn something from it. You never know when something is going to impact you and your career.

 

 

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Campus Organization Spotlight: The Management Association

When prospective students think about college, many times their minds are drawn to big things like classes, professors, sports, fraternities or sororities, and dining. However, many times the most memorable and fulfilling moments of college happen within the many small organizations and clubs offered on campus.

The Grove City Management Association (or just Management Association for short) is a medium-sized organization, which is attempting a major comeback. This organization had faded into extinction in recent years, but a group of officers and faculty have brought it back to life. With around 40 current members, the Management Association is looking to continue to maintain a standard of excellence for years to come.

The purpose of the Management Association is to “provide the students of Grove City College of any major with opportunities to develop their practical management and business skills” explained current Management Association VP Liam Von Berg. “We do this by hosting guest speakers and putting together events for professional development, such as last year’s Ethics Panel where five alumni from Grove City came and spoke about ethics in the workplace and their various stories of ethical dilemmas,” he added.

Von Berg recalled one story told at the Ethics Panel that particularly stuck with him. “One guy spoke about his time as a car rental sales rep and how he wouldn’t rent a car to a woman because she didn’t meet [the] criteria. His boss told the lady she could have the car anyway, despite not meeting company standards, and she ended up stealing the car and burning down an ex boyfriends house!” Not all of the stories were so dramatic, Von Berg added, “But there was a good amount of talk regarding the gray areas that we face in everyday work.”

Other events put on by the Management Association include a fall party, booths at organization fairs, and smaller club meetings. At these meetings, they sometimes have business owners (for example, Kory Kay, a Chick-fil-A operator) come in to tell their story and give advice to the members. In addition, one of the most exciting events that they have planned is a tour of a FedEx plant.

The Management Association also has big plans to put on a “Women in the Workplace” event, hosting some of Grove City’s own female faculty to discuss various scenarios that they faced in the workplace and how they handled them.

One unique aspect about this organization is that membership is not exclusively reserved for “Business” or “Management” majors. Any student who is looking to develop their business or management knowledge is welcome to join.

Membership is pretty simple, as they are always looking for new members to grow the organization. All prospective students interested in any field of business or management are encouraged to check out the Management Association upon arrival at Grove City.

 

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Internship Opportunity with Highmark Health

Kiley Hajek is a senior Marketing Management major from Butler, Pa. The summer after her junior year, Kiley had an internship with Highmark Health in Pittsburgh. Being a Marketing Management major myself, I was curious to hear what Kiley did with Highmark this past summer.

When I asked Kiley about her role with the company and what she accomplished that summer she replied, “I was interning in their Community Affairs Department. I was in charge of coordinating two separate volunteer days for the other 120 interns working in the Downtown Pittsburgh office for the summer. I also helped with employee PTO volunteer days. I worked on internal communications for Community Affairs and worked on several fundraising projects. I also researched applicants to the Highmark Walk for a Healthy Community.”

I followed with, “Did you enjoy your experience?” Which she quickly answered, “I really enjoyed my experience. I didn’t know that Community Affairs existed in large corporations before this summer, and I learned a lot about the department and its function in the company. I also loved working in downtown Pittsburgh. I parked my car about 20 minutes from my building and rode a bike from the bike sharing company, Healthy Rides, every day, which was quite the experience. I definitely saw the city in a whole new light this summer. After working there this summer, I realized that I think I will thrive in a smaller non-profit environment, where I can feel that my work is helping people, and where I feel challenged in the variation of my day to day tasks. I learned a lot this summer about myself and what I want to do after graduation, so I am very thankful for the experience!”

Kiley acquired this internship through the help of her advisors in the Business and Marketing Department. Her opportunity at Highmark is just another example of the connections and possibilities available for Grove City College students.

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A Major League Intern

Nate Curry, a 2019 senior, may seem like your average student athlete, but last summer he had a major experience with Major League Soccer (MLS) at its National Sales Center. Located in Blaine, Minn., Nate spent the summer as an intern supporting the current crop of post-graduates who were going through the sales training program themselves.

An internship at Grove City can be used for class credit if it meets the criteria set forth by each academic department. A few of these requirements may include regular contact with your faculty advisor, logging your hours worked, and a paper to reflect on your time as an intern. Depending on the number of hours of work an intern does, they can receive an upwards of six hours of class credit. A student’s faculty advisor for their internship will be a professor who has had firsthand experience in that type of work. This has proven to benefit our students because they can go into their internships knowing what they can expect, as well as being aware of what challenges they may be faced with.

I sat down with Nate and his faculty advisor, Dr. Scott Powell, to discuss what Nate’s experience at the National Sales Center was like. Dr. Powell also gave us some insight on the advantages of doing an internship for academic credit, as well as why Grove City encourages all of their students to take advantage of those benefits.

Dr. Powell and Nate went more in depth on Nate’s internship, the importance of an academically verified internship, and what it looks like to be a Christian in a secular work environment. If you are interested in learning more about these topics, you can view our full interview here: https://youtu.be/_RBSy-zZfAo