Accounting or Finance?

iteracom wrote:
Well OP, it seems many people all agree: accounting work sux.
It’s funny, we all agree more finance people should do accounting. But who wants to willingly do a job that the consensus says “the work sucks, and you will likely hate your job”
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Isn’t this a classic case of sampling bias? The people on this forum are predominantely those looking for or currently have finance related careers. So if we did have anybody coming from accounting, chances are they wouldn’t be here if they liked what they did.
I don’t know if there is a forum like this for accountants, but I’m sure you’d get a much different response asking this question on that forum.
That being said, I can only imagine that being an accountant would start to suck really quickly.
 
1. I say this having only taken CFA L1 (and only partially through the L2 material), so take it with a grain of salt, but based on my experience, I would disagree that any one portion of the CFA is more difficult than the entire CPA exam. From a pure breadth of information standpoint that covers a broad range of topics, there’s absolutely no doubt that the CFA an entirely different animal than the CPA, but that’s also the main source of it’s difficulty level. Conceptually, there’s nothing mind-bending (at least nothing I’ve encountered). I found several topics to be difficult (mostly in macroeconomics and derivatives), though most of the material is very logical.
The CPA on the otherhand - and accounting in general - is like learning a new language. You have to will yourself into understand concepts that are not easily relatable to some logical, everyday conclusion. That makes the CPA and studying for the CPA extremely mind-numbing. On top of that, there are concepts in the FAR and REG sections of the CPA that are vastly more advanced than any one topic on the CFA. I am sure anybody with their CPA license finds the concepts addressed in the FRA portions of the CFA to be borderline elementary accounting, and yet a majority of candidates struggle with this section specifically.
It’s very difficult to compare the 2 exams. The CPA is broken into 4 sections, each of which contains the amount information that can be found in one standard CFA book. In that sense the entire CPA exam encompasses the amount of material in any one level of the CFA. As it stands, individuals (or “candidates” if you will) that take the CPA, sit for each exam independently. They devote all of their time leading up to an exam preparing for one topic - yet the pass rates are still between 45% - 50% (even the NYS Bar Exam has a 70% pass rate). What’s more, everybody sitting for the CPA exam has the equivalent to a master’s degree in accounting, as the exam is prohibitively cut off to anybody else.
With all of that said, I admittedly found studying for CFA L1 a lot more exhausting and grueling. Additionally, the exam itself was an entirely different (and more difficult) experience than any one portion of the CPA (FAR included). When I passed L1, I was much more satified by my accomplishment than I was after passing the first 3 portions of the CPA (nothing compares to passing that last part of the CPA). I imagine though if the CPA was one exam, offered once a year, covering the entire range of topics it currently does, there would be no contest - the CPA (in my pre-L2 eyes) would be more difficult.
2. I agree. Accounting is a better career decision as it’s in demand and it provides you with a transferrable skill to just about any industry and geographic region. Finance is so much more interesting though. Plus, in order to avoid the random accounting equivalent to the “Collateral Analyst Cash Accelerator” position, you’ll be told by a lot of people (including your professors) that you must go to the Big 4, and once you do that - well that’s a different topic…
 
I am an accountant (very close to the C level) but working as an expat for a major US MNC. I can not complain about pay and my job doesn’t suck.
 
corcbomb wrote:
1. I say this having only taken CFA L1 (and only partially through the L2 material), so take it with a grain of salt, but based on my experience, I would disagree that any one portion of the CFA is more difficult than the entire CPA exam. From a pure breadth of information standpoint that covers a broad range of topics, there’s absolutely no doubt that the CFA an entirely different animal than the CPA, but that’s also the main source of it’s difficulty level. Conceptually, there’s nothing mind-bending (at least nothing I’ve encountered). I found several topics to be difficult (mostly in macroeconomics and derivatives), though most of the material is very logical.
The CPA on the otherhand - and accounting in general - is like learning a new language. You have to will yourself into understand concepts that are not easily relatable to some logical, everyday conclusion. That makes the CPA and studying for the CPA extremely mind-numbing. On top of that, there are concepts in the FAR and REG sections of the CPA that are vastly more advanced than any one topic on the CFA. I am sure anybody with their CPA license finds the concepts addressed in the FRA portions of the CFA to be borderline elementary accounting, and yet a majority of candidates struggle with this section specifically.
It’s very difficult to compare the 2 exams. The CPA is broken into 4 sections, each of which contains the amount information that can be found in one standard CFA book. In that sense the entire CPA exam encompasses the amount of material in any one level of the CFA. As it stands, individuals (or “candidates” if you will) that take the CPA, sit for each exam independently. They devote all of their time leading up to an exam preparing for one topic - yet the pass rates are still between 45% - 50% (even the NYS Bar Exam has a 70% pass rate). What’s more, everybody sitting for the CPA exam has the equivalent to a master’s degree in accounting, as the exam is prohibitively cut off to anybody else.
With all of that said, I admittedly found studying for CFA L1 a lot more exhausting and grueling. Additionally, the exam itself was an entirely different (and more difficult) experience than any one portion of the CPA (FAR included). When I passed L1, I was much more satified by my accomplishment than I was after passing the first 3 portions of the CPA (nothing compares to passing that last part of the CPA). I imagine though if the CPA was one exam, offered once a year, covering the entire range of topics it currently does, there would be no contest - the CPA (in my pre-L2 eyes) would be more difficult.
2. I agree. Accounting is a better career decision as it’s in demand and it provides you with a transferrable skill to just about any industry and geographic region. Finance is so much more interesting though. Plus, in order to avoid the random accounting equivalent to the “Collateral Analyst Cash Accelerator” position, you’ll be told by a lot of people (including your professors) that you must go to the Big 4, and once you do that - well that’s a different topic…
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Shouldn’t you wait until you complete the 3 CFA exams before comparing the two?
 
former trader wrote:
Shouldn’t you wait until you complete the 3 CFA exams before comparing the two?
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You’re right, I cannot argue that the CFA exam in its entirety is more or less difficult than the CPA in its entirety, but that’s not what I’m trying to do. The argument I’m disputing is each level of the CFA being about as difficult as the CPA exam combined. I have experience in both, having passed a level of the CFA and passing the CPA exam, and based on my experience I disagree. Regardless, it’s all hypothetical as the CPA structure isn’t designed to take the exam in one day.
 
L1 is a piece of cake if you have an undergrad in finance. L2 and L3 are graduate level.
 
Coming from a major office of one of the Big 4 after 3 years, I agree that it is a better initial choice out of a non-Ivy league school; if only to use accounting as a foundation and/or back up career. Working audit at the Big 4 DOES suck. I didn’t even work that many weekends and I still despised it; there’ s just no drive to push yourself. Just a motivation to finish the audit and get shit signed off. But if you’re smart, the exit opportunities out of the Big 4 are so mind boogling you’d be an idiot not to start there vs. a typical entry level finacial analyst job. Your base salary isn’t that great but you should average 8% increase every year if you’re just pretty decent- aka just do your freaking work and don’t blow anything up. The entire game in accounting is to build your base salary- you’re paid a lot for your responsibility after you’ve been in the field for a few years (salary) but your bonuses (performance) will be pitiful until you’re a manager or above. Overall, accountants are WAY more realistic than people in finance. I’ve met so many people who love to say they’re in finance and an analyst like it actually means something. 80% of these people are full of shit and are in a position of limited growth. Accounting places you in a position of virtually UNlimited growth in terms of advancement in the field you’re assigned to in audit and (mostly) if you chose to branch off into something else. A little more than a year out of college I had an MSA (FYI- this degree means basically nothing if you did acct undergrad) and my CPA. My salary increased by just over 40% in 3 years FLAT and I made a move to a small consulting firm that is probably 70% what you would call “accounting” (which is a wildly broad term) and 30% biz processes, modeling, etc.
Cliff Notes: Public Acct does blow; but if you went to an Ivy league school you don’t have that problem. If you didn’t, get a dose of reality and suck it up. You are not special so prove you can do some good, professional work, get a certification and get on with your life. If your undergrad doesn’t scream “I’m awesome” and / or you’re not connected up the wazz- start busting your chops. And seriously, there are worse things than waiting until you’re 26 or 27 to make six figures. Just don’t get caught on the public accounting carousel- tuck ‘n roll off of that merry-go-round after a few years.
 
I forgot to mention- I still want to move on b/c I really hate technical accounting- viewpoints, FASB releases, SEC guidelines, AICPA guidance- and I’ve always liked the market a lot. Conversely, if you’re good at technical accounting, or if you’re someone who it just comes easy to, you can make serious money w/out putting yourself through the hell of the CFA exam.
 
JOE2010 wrote:
I am an accountant (very close to the C level) but working as an expat for a major US MNC. I can not complain about pay and my job doesn’t suck.
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Do you wanna cookie?
 
People used to ask me about CPA vs CFA. Although I haven’t taken the CPA exams, I often pointed out that accountants have good job security and decent pay; many seem to find it boring work, but they’re ok with that. Finance has less job security and is usually quite interesting, and there’s a small chance of really hitting it big. In good times, people are more attracted to finance and the potential big win, in bad times, many people like the job security of accounting.
There’s also an observation I made about financial statements - which accountans might object to - I am happy to be better informed if any accountants want to correct me. My impression is that accounting is about ensuring that financial statements correctly record what has happened with a company (and perhaps record in a way that - hopefully legally - reduces things like tax burdens). It’s backward looking in the sense that it’s focused on what happened and how to record it. Financial analysis looks at accounting statments in order to determine what is happening with the company and where it’s going, so it’s more forward looking. If you are into imagining the future, I would think that finance is more appealing than accounting on a purely intellectual level.
 
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