Studying Accounting: Degrees at a Glance
If you have a bachelor's degree and you're considering a career change to accounting, a master's degree can help you enter this field. If you're an experienced accountant looking to advance your career, a master's degree may also be an asset. However, attaining Certified Public Accountant (CPA) status can advance your career as well, and a master's degree is not required. A PhD in Accounting is unnecessary unless you'd like to be a university professor.
According to the U.S. Bureau of Labor Statistics, employment for accountants and auditors was expected to increase by 16 percent from 2010 to 2020, which is an average growth rate. However, since accounting is such a large profession, this means that nearly 200,000 new accounting jobs were projected to open up during that time frame. A 2005 survey by the American Accounting Association had also projected a strong demand for accounting PhDs on the academic job market.
| Master's | Doctorate | |
|---|---|---|
| Who is this degree for? | People with bachelor's degrees in other fields who want to transition into accounting, as well as accountants who want to enhance their qualifications | Individuals who want to work as professors at the college level |
| Common Career Paths (with approximate median annual salary) | Work experience may be required in addition to education, and a bachelor's degree is sufficient for some of the following positions: - Accountant or auditor ($63,000)* - Senior financial examiner ($75,000)* | - Business professor ($75,000)* - University provost ($132,000)** - Dean of business department ($154,000)** (work experience in academia is usually required for provost and dean positions, and a master's degree may be sufficient for some jobs) |
| Time to Completion | About 9-18 months full-time or 18 months to 3 years part-time | Approximately 4 years full-time |
| Common Graduation Requirements | - Usually 10-19 courses | - 17-20 courses - Comprehensive exam - Dissertation |
| Prerequisites | - Bachelor's degree in any field | - Usually the same as the master's degree requirement; however, accounting background will be a consideration for admissions, and a strong math background is also important |
| Online Availability | Yes | Yes, but choose carefully |
Sources: *U.S. Bureau of Labor Statistics (May 2011) and **Salary.com (May 2012).
Master's Degrees in Accounting
Many master's degree programs are structured to accommodate both professional accountants seeking career advancement and individuals who are new to accounting. Since most states require accountants to obtain 150 semester credits before sitting for the CPA exam, and undergraduate programs usually provide just 120 credit hours, you can fill this gap in credits by enrolling in a master's program.
Schools typically require students who already have a bachelor's degree in accounting to take just 10 courses, while students with a degree in another field will need to take 15-20 courses. Unlike most master's degree programs, the MS in Accountancy does not usually require the completion of a thesis.
Pros and Cons
Pros
- Master's degree holders may receive preference in hiring over those with only a bachelor's degree
- You can complete the 150-credit hour requirement for the CPA exam by earning your master's degree
- Attending graduate school can provide you with valuable career networking opportunities
Cons
- It can take over a year to earn your degree if you attend school full-time, and even longer if you go part-time
- Most accounting jobs only require a bachelor's degree and/or accounting experience
- A master's degree does not automatically qualify you for CPA candidacy
Courses and Requirements
The courses you'll take vary depending on your prior knowledge and experience. All students, including those who majored in accounting, are usually required to take advanced courses like corporate law, cost management, international accounting and ethics. However, students without an accounting background will also need to study topics like these:
- Accounting and auditing basics
- Managerial accounting
- Federal tax planning
- Corporate tax
Online Degree Options
Some master's degree programs in accounting are available entirely online, and many campus-based programs offer students the opportunity to take some classes remotely. Whether you attend an online or campus-based program, your course requirements will be more or less the same. If you plan to sit for the CPA exam someday, be sure to verify that the credits you earn in your online program will count toward your state's requirements.
Stand Out With This Degree
The BLS reports that getting practical work experience can improve your career prospects. Individuals lacking career experience in accounting can contact the career services offices of their schools to identify potential internships and externships.
After graduation, you can enhance your job prospects further by pursuing professional certification. Once you meet your state's education and work experience requirements, you can sit for the 4-part Uniform CPA Examination. You might also consider earning certification from the professional organization that's relevant to your accounting specialization, such as the Institute of Management Accountants or the Institute of Internal Auditors.
PhD in Accounting
Accounting doctoral programs are usually aimed at students who want to conduct research and teach at the college level. The courses, seminars, research projects and dissertations required by most PhD programs are designed to hone students' research and critical-thinking skills. Due to the intense focus on scholarly research and empirical analysis, a PhD in Accounting may be of little benefit to individuals seeking a graduate degree for non-academic career purposes. Potential doctoral candidates should also note that the mathematical and statistical knowledge required at this level is usually much greater than what's needed for a master's degree.
Pros and Cons
Pros
- The job market for accounting professors is strong*
- As professors, PhD holders will have the opportunity to teach future accounting professionals
- Academics may conduct research that impacts the entire accounting profession
Cons
- A PhD isn't necessary for the vast majority of accounting jobs
- Earning a PhD will take about 4 years
- You may be required work as a graduate teaching assistant while studying, and juggling teaching and academic responsibilities can be stressful
Source: *American Accounting Association, 2005.
Courses and Requirements
Most accounting PhD programs require students to take core courses during their first two years of study in areas like research methods and econometrics, economics and finance, financial reporting and advanced accounting. Students are usually required to pass a comprehensive examination at the end of their second year, at which point they enter the dissertation phase of the program. When the dissertation is complete, the student will defend his or her conclusions before a panel of professors.
Online Degree Options
Some institutions offer online doctoral programs in accounting. In order to be accepted, students need to have extensive experience in the field of accounting and knowledge of algebra, calculus and statistics. Online programs may require students to be on campus at certain times, but a 'virtual residency' through online video conferencing may be available.
It's important to note that some online PhD programs in accounting are designed to enhance your accounting skills, not prepare you for an academic career. If you're considering an online program, carefully evaluate it to determine whether or not it can help you meet your career goals.
Stand Out With This Degree
Students may seek out opportunities to participate in research and co-author academic papers, since such experience is viewed favorably on the job market. Doctoral candidates can also consider attending professional conferences in order to gain exposure and network with potential employers. In addition, many conferences offer graduate students opportunities to present their work to other academics and gain valuable feedback.
