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The World Of Accounting

The World Of Accounting. The Four Sectors of Accounting. Public CPA Firms Private (Industry) Any Commercial Businesses Government IRS*Franchise Tax Board*City/State Gov’t NGO’s: Non-governmental Organizations Charity & Volunteer Organizations. “The Big Four” of Public Accounting.

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The World Of Accounting

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  1. The World Of Accounting

  2. The Four Sectors of Accounting • Public • CPA Firms • Private (Industry) • Any Commercial Businesses • Government • IRS*Franchise Tax Board*City/State Gov’t • NGO’s: Non-governmental Organizations • Charity & Volunteer Organizations

  3. “The Big Four” of Public Accounting • “The Big Four” are the largest international accounting firms around. • KPMG • Deliotte-Touche • Ernst & Young • Price Waterhouse Cooper

  4. “Second Tier” of Public Accounting • National/International accounting firms • Grant Thorton (5th) • BDO Seidman (6th) • McGladrey & Pullen (7th) • Crowe Group (8th) • Moss Adams

  5. Other levels of Public Accounting • Regional Accounting Firms • Local firms • Sole Practitioner

  6. Jobs Performed by Public Firms • Tax Filing • Auditing • Computer Information Systems (CIS) • Management Consulting • Litigation Support • Forensic Accounting • Personal Financial Planning

  7. Certified Public Accountant (CPA) • The highest designation available in the Accounting profession. • A “CPA” designation is worth more the higher the level of accounting it is gained at. • A Public, Big Four “CPA” designation is worth more than a “CPA” designation earned at a small firm.

  8. What does it take to be a CPA?: •  A bachelor’s degree; • 24 semester units in accounting-related subjects; • 24 semester units in business-related subjects; • 150 semester units (or 225 quarter units) of education; • Passing the Uniform CPA Exam; • One year of general accounting experience supervised by a CPA with an active license; and • Passing an ethics exam.

  9. The CPA Exam • The CPA Exam consists of four subjects: • Auditing & Attestation: AUD – 4.5 Hours • Financial Accounting & Reporting: FAR – 4 Hours • Regulation: REG – 3 Hours • Business Environment & Concepts: BEC – 2.5 Hours

  10. Job Titles in Public Firms • Partner 10+ years ($500,000 plus) • Principle-Senior Manager 8 + years • Manager - 5 years ($80 – $110,000) • Senior 3-5 years ($58 - $74,000) • Staff Accountant 1-3($50,000 /yr) • Firms are looking for a 3.4+ GPA at an accredited 4-year college and involvement in college extracurricular programs. • Public firms guarantee advancement for good accountants.

  11. Private Accounting • Private Accounting covers the accounting done by any commercial company from large corporations such as Microsoft, GE, Best Buy, or Wal-mart down to simple small businesses.

  12. Job Titles in Private Accounting • Chief Financial Officer (CFO) • Controller • Assistant Controller • Accounting Manager • Accountant • The education required to work at a starting level is lower than that of Public Firm.

  13. Support Positions • Full Charge Bookkeeper $ 40,000 - $ 45,000 • Bookkeeper $ 38,000 - $ 42,000 • Senior Clerk $ 34,000 - $ 40,000 • Payroll Clerk $ 28,000 - $ 36,000 • AR/Credit & Collections Clerk $ 24,000 - $ 34,000 • Accounts Payable/Billing Clerk $ 24,000 - $ 34,000 • Accounting Clerk $ 24,000 - $ 34,000

  14. Staff Positions: • Senior Financial Analyst $ 75,000 - $ 80,000 • Financial Analyst $ 65,000 - $ 70,000 • Credit Analyst $ 60,000 - $ 65,000 • Sr. Cost Acct./Analyst $ 75,000 - $ 85,000 • Cost Accountant/Analyst $ 65,000 - $ 75,000 • Revenue Accountant $ 65,000 - $ 70,000 • Tax Accountant $ 70,000 - $ 85,000 • Accounting Supervisor $ 60,000 - $ 75,000 • Internal Auditor $ 70,000 - $ 80,000 • Senior Accountant $ 60,000 - $ 75,000 • Staff Accountant $ 40,000 - $ 45,000 • Junior Accountant $ 32,000 - $ 35,000

  15. Assistant Controller/ • Accounting Manager $ 80,000 - $ 90,000 • Cost Accounting Manager $ 80,000 - $ 85,000 • Tax Manager $ 80,000 - $ 90,000 • Audit Manager $ 75,000 - $ 80,000 • SEC Manager $ 75,000 - $ 80,000 • Finance Manager $ 75,000 - $ 80,000 • Payroll Manager $ 65,000 - $ 70,000 • Credit/Collections Manager $ 65,000 - $ 75,000

  16. Executive Pay • Southern California/South Bay Area [2007] • Executive • POSITIONSSALARY RANGES • CFO $150,000 - $250,000+ • VP Finance $120,000 - $135,000+ • Director - Audit $110,000 - $130,000+ • Direc. - Finance $110,000 - $130,000+ • Treasurer $100,000 - $120,000+ • Controller $95,000 - $115,000+

  17. Government Accounting • Government Accounting consists of agencies which work to maintain national (and international) accounting laws for businesses and individuals and to maintain government finances. • Internal Revenue Service (IRS) • State Board of Equalization • Franchise Tax Board

  18. Benefits of Gov’t Accounting Jobs • Consistent 8 AM to 5 PM Work Schedule • Benefits • Medical • Dental • Vacation

  19. Non-Governmental Organizations • Organizations working for charity and community purposes. • .

  20. Non-Governmental Organizations • Examples: • Boy/Girl Scouts • Big Brothers/Big Sisters of America • Feed the Children • Habitat For Humanity • Meals on Wheels • American Red Cross • American Association on Mental Retardation • NAACP • UNICEF • World Wildlife Fund

  21. North American Examples Alliance for Democracy in Iran American Cancer Society American Diabetes Association Desert Springs Action Committee Earth First! EnviroLink Network Environmental Defense Friends of the Earth USA Global Exchange Gray Panthers Hispanic Council for Reform and Education Options Human Rights Watch International Republican Institute National Organization of African-Americans in Housing Natural Resources Defense Council Rainforest Action Network Safari Club International Sierra Club Institute for Justice and Democracy in Haiti

  22. Financial Managerial Taxation • Preparation • Analysis • Auditing • Regulatory • Consulting • Planning • Criminal investigation • General accounting • Cost accounting • Budgeting • Internal auditing • Consulting • Controller • Treasurer • Strategy • Preparation • Planning • Regulatory • Investigations • Consulting • Enforcement • Legal services • Estate plans • Lenders • Consultants • Analysts • Traders • Directors • Underwriters • Planners • Appraisers • FBI investigators • Market researchers • Systems designers • Merger services • Business valuation • Forensic accountant • Litigation support • Entrepreneurs Accounting-related Opportunities in Accounting C 2 1-22

  23. Accounting Jobs by Area C2 1-23

  24. California’s Public Education System • Two tiered approach: • 1) University of California’s • Top 10% of students • Focuses on research • Grants PhD's, doctorates, law schools and medical schools • 2) California State Universities • Focuses on teaching

  25. Structure of Higher Education Professional Degrees (e.g., MD, DDS, JD, DVM) Doctorate Master’s Degree Seniorlevel (90+ units) Bachelor’s Degree(120+ units) Upper Division Coursework (University) Junior level (60-89 units) Sophomore level (30-59 units) Associate’s Degree(60+ units) Lower Division Coursework (Community College) Freshman level (1-29 units)

  26. Degrees:Bachelor’s Degree – 4 years (SAT)Master’s Degree – 2 years (GRE/GMAT)MBA (Masters of Business Admin) (GMAT)Phd. (Doctor of Philosophy) – 4 years (GRE)J.D. (Juris Doctorate) – 3 years (LSAT)M.D. (Medical doctor) – 4 years (MCAT)DDS (Doctor of Dental Surgery) – 4 years (DAT)DVM (Doctor of Veterinary Med) – 4 years (VCAT)

  27. The UC’s: • Berkeley • Davis • Irvine • Los Angeles • Merced • Riverside • San Diego • San Francisco • Santa Barbara • Santa Cruz

  28. The “Cal States” • California State University Bakersfield • California State University Channel Islands • California State University Chico • California State University Dominguez Hills • California State University East Bay • California State University Fresno • California State University Fullerton • Humboldt State University • California State University Long Beach • California State University Los Angeles • California Maritime Academy • California State University Monterey Bay • California State University Northridge • California State Polytechnic University, Pomona • California State University Sacramento • California State University San Bernardino • San Diego State University • San Francisco State University • San Jose State University • California Polytechnic State University, San Luis Obispo • California State University San Marcos • Sonoma State University • California State University Stanislaus

  29. Private Schools • Biola University • California Institute of Technology • Chapman University • Claremont Graduate School • Claremont McKenna College • Harvey Mudd College • Pitzer College • Pomona College • Loyola Marymount University • Occidental College • Santa Clara University • Stanford University • University of Redlands • University of San Diego • University of San Francisco • University of Southern California

  30. Stanford Cal Tech Harvey Mudd Pitzer College Pomona College Claremont McKenna University of San Diego Occidental College Santa Clara Loyola Cal Poly SLO UC San Diego UC Santa Barbara UCLA USC Berkeley Best Schools in California

  31. UCLA Stanford University Univ. of Southern Cal. UC Berkeley UC Santa Barbara Cal Poly SLO Claremont McKenna UC Davis University of San Diego (private school) Loyola Marymount Univ. San Diego State Univ. UC Irvine UC San Diego Chapman University Santa Clara Univ. (private school) San Jose State Univ. Cal State NORTHRIDGE Best Schools for Passing CPA Exam in CA

  32. Best Finance Programs 1 University of Pennsylvania 2 New York University 3 University of Michigan 4 University of Texas 5 University of California 6 Massachusetts Institute of Technology 7 University of North Carolina 8 University of Virginia 9 Indiana University 10 Carnegie Mellon University University of Illinois,

  33. Best International Business • 1 University of South Carolina--Columbia Columbia, SC • 2 University of Pennsylvania Philadelphia, PA • 3 New York University New York, NY • 4 University of Michigan--Ann Arbor Ann Arbor, MI • 5 University of Southern California Los Angeles, CA • University of Texas--Austin Austin, TX • 7 University of California--Berkeley Berkeley, CA • 8 Georgetown University Washington, DC • 9 University of Washington Seattle, WA • 10 Temple University Philadelphia, PA

  34. Best Marketing Programs • 1 University of Pennsylvania Philadelphia, PA • 2 University of Michigan--Ann Arbor Ann Arbor, MI • 3 University of Texas--Austin Austin, TX • 4 University of North Carolina--Chapel Hill, NC • 5 University of California--Berkeley Berkeley, CA • 6 Indiana University--Bloomington Bloomington, IN • 7 New York University New York, NY • University of Florida Gainesville, FL • 9 University of Virginia Charlottesville, VA • 10 University of Wisconsin--Madison Madison, WI

  35. Best Accounting Programs • 1 University of Texas--Austin Austin, TX • 2 University of Illinois--Urbana-Champaign,IL • 3 University of Pennsylvania Philadelphia, PA • 4 Brigham Young University--Provo Provo, UT • 5 University of Southern California Los Angeles, CA • 6 University of Michigan--Ann Arbor Ann Arbor, MI • 7 University of Notre Dame Notre Dame, IN • 8 Indiana University--Bloomington Bloomington, IN • 9 New York University New York, NY • 10 Michigan State University East Lansing, MI

  36. Best Real Estate Programs • 1 University of Pennsylvania Philadelphia, PA • 2 University of Wisconsin--Madison Madison, WI • 3 University of Georgia Athens, GA • 4 New York University New York, NY • University of California--Berkeley Berkeley, CA • 6 University of Florida Gainesville, FL • 7 University of Southern California Los Angeles, CA • 8 University of Connecticut Storrs, CT • University of Illinois--Urbana-Champaign, IL • 10 University of Texas--Austin Austin, TX

  37. Best Logistics/Supply Chain Management • 1 Massachusetts Institute of Technology Cambridge, MA • 2 Michigan State University East Lansing, MI • 3 Pennsylvania State University--University Park, PA • 4 Arizona State University Tempe, AZ • 5 Ohio State University--Columbus Columbus, OH • 6 Carnegie Mellon University Pittsburgh, PA • 7 University of Tennessee Knoxville, TN • 8 University of Maryland--College Park, MD • 9 Purdue University--West Lafayette West Lafayette, IN • 10 University of Texas--Austin Austin, TX

  38. Best Values (Most Discounted) • Harvard University • Cambridge, MA Rank 1 Percent need-based grants: 51 % discount from total cost: 68 % • Princeton University • Princeton, NJ Rank 2 Percent need-based grants: 53 % discount from total cost: 66 % • Yale University • New Haven, CT Rank 3 Percent need-based grants: 42 % discount from total cost: 64 % • Massachusetts Institute of Technology • Cambridge, MA Rank 4 Percent need-based grants: 61 % discount from total cost: 59 % • Stanford University • Stanford, CA Rank 5 Percent need-based grants: 42 % discount from total cost: 63 % • California Institute of Technology • Pasadena, CA Rank 6 Percent need-based grants: 52 % discount from total cost: 56 % • Dartmouth College • Hanover, NH Rank 7 Percent need-based grants: 50 % discount from total cost: 60 % • Columbia University • New York, NY Rank 8 Percent need-based grants: 46 % discount from total cost: 60 % • University of North Carolina--Chapel Hill • Chapel Hill, NC Rank 9 Percent need-based grants: 35 % discount from total cost: 50 % • Rice University • Houston, TX Rank 10 Percent need-based grants: 34 % discount from total cost: 53 % • University of Pennsylvania • Philadelphia, PA Rank 11 Percent need-based grants: 40 % discount from total cost: 55 % • Duke University • Durham, NC Rank 12 Percent need-based grants: 38 % discount from total cost: 55 % • University of Chicago • Chicago, IL Rank 13 Percent need-based grants: 43 % discount from total cost: 53 % • Vanderbilt University • : 48 % • University of Notre Dame

  39. Other Majors – follow what you love or enjoy: • Sports Management • Entrepreneurship • Hotel/Restaurant Management • Construction Management • Logistics/Supply Chain Management • Transportation Management

  40. Real Life Example

  41. Longer View:

  42. What’s Important?

  43. Two Important Goals: • Dean’s List • 3.5 grade point average 12 or more units… • At excellent schools, you need to be a hard worker and have EXCELLENT • President’s List • 4.0 grade point average 12 or more units… Analytical skills, and writing skills…defined by me, teachers that push and those universities.

  44. Food for thought… • Pick the major that you most ENJOY and take it at absolutely the BEST school you can get into…. • A Harvard/UC Berkeley/Claremont College graduate in Art History can interview at Boston Consulting Group, while no one from Cal State Bernardino can.

  45. Great Schools are LESS expensive • I promise you, great schools WANT great students. • Great schools (especially PRIVATE) have lots of money and love community college students, that are first generation students, with EXCELLENT grades • I know of very successful families whose children get scholarships for academics..

  46. Other things to consider: • Facebook / My Space Pages • Email Addresses - hard to make go away • How to Dress • Business Etiquette • Hard work • Acknowledge fears, then face them

  47. Where do transfer students fit in?: • GPA of 3.7 and up: you can and should apply anywhere and everywhere…UCLA, Berkeley, USC, NYU….. • GPA 3.4 to 3.69…you can and should apply everywhere, but might have to “back door” a few places. • GPA 3.0….can get into many EXCELLENT schools, might have to “back door” at UCLA and others. • GPA high 2’s…..California State University, Northridge has an EXCELLENT accounting program

  48. Miscellaneous Items: • You have basic health care through Cerritos College health center.. Need slide on student perspective of cost of college vs future income and a time line that 24 or whatever isn’t old

  49. Structure of Higher Ed Professional Degrees (e.g., MD, DDS, JD, DVM) Doctorate Master’s Degree Senior level (90+ units)Bachelor’s Degree(120+ units) Upper Division Coursework (University) Junior level (60-89 units) Sophomore level (30-59 units)Associate’s Degree(60+ units) Lower Division Coursework (Community College) Freshman level (1-29 units)

  50. Degree Components ELECTIVES Additional courses if needed to meet the minimum unit requirement GENERAL EDUCATION A little bit of everything to become well-rounded MAJOR A specific area of study in which to gain more expert/ specialized knowledge General Education + + Whether an Associate’s or a Bachelor’s degree, you will need to meet a minimum unit requirement. Units will come from these main components:

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