OT: Graduate Degrees - Finance vs Accounting

Submitted by sbeck04 on

Hey guys, I'm hoping some of you MGoFinance folk can give me some real world insight into the merits of a MAcc vs MSF program.  

A bit about me, I have a BA in Econ and History and recently switched fields into accounting, but I need a more relevant degree to progress much further.  I have a subpar undergrad gpa, a 720 GMAT, and some work experience so I'm envisioning a respectable, but not top tier program.  I don't intend to get my CPA license unless I end up needing too at some point.  

I'm drawn to a couple of joint degree programs for accounting and finance, but I'm wondering if the degrees so similar that this would be overkill?  Is there any major difference in marketability or utility of either program separately?  I'm looking for some more practical information than the readily available statistics and boilerplate descriptions.

Thanks for the help.

 

Edit:  Thanks to everyone who took the time to comment, lots of great posts here.

SAMgO

February 6th, 2016 at 4:05 PM ^

Do you want to work in accounting or financial services? I don't see the need to do a joint degree when you're going to have to make that choice at some point anyways, and most people who want to be well rounded in both get MBAs.

Also, you're doing this purely to advance your career so choose the program based on placement statistics and do a lot of research into which firms actually consider your program choices targets. It's 100x easier to get a high paying job through on campus recruiting than through trying to elbow your way in networking with people you don't know. Best of luck.




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sbeck04

February 6th, 2016 at 4:19 PM ^

I'm thinking more along the lines of financial analysis.  I would definately prefer to stay in accounting as opposed to something like a personal financial manager though.  I want something more specific than an MBA.  I'm gun-shy on being "well-rounded" after going that route in undergrad and not being pleased with the results.

Thanks for advice about on-campus recruiting - that is one thing I've been overlooking so far.

jcgold

February 6th, 2016 at 6:18 PM ^

I'm a Ross MAcc grad, so I'll chime in.

MAcc programs, like those at Michigan, are 100% geared towards careers in public accounting. That's not to say the jump to finance is impossible (I have friends from the program in both I-banking and trading), but they had very uphill battles to fight to get to where they are.

Since leaving Ross, I've worked my entire career within the big 4. Exit opportunities tend to flow into other accounting based opportunities, but that is not always the case. However, as a tax person (and not an auditor), I don't see as much variation in where people go vs the audit side.

With a 720 GMAT, you can take your pick of high-end accounting programs (Michigan being one of them). And at a school like Ross, where the Big 4 are literally drooling to pick up new hires, finding a job in accounting would be relatively easy.

Would be happy to go into more detail if you'd like. Drop your email below if interested.




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plaidflannel

February 6th, 2016 at 4:14 PM ^

You should really only get a MAcc for three reasons:

1. If you need credits for the CPA (most states require 150 overall and 30 accounting credits)

2. If you missed your shot to recruit with accounting/finance firms as an undergrad (as a MAcc, you will be recruiting against undergrads, not grads) and want to recruit with those firms

3. If you really want to learn more about technical accounting

If you are already working in accounting, I am not sure a MAcc will help you, especially if you are not looking to be a CPA.  Your GMAT is high enough to get into pretty much any MAcc program though.

I do not know much about MSF programs, but if I were you, I would look to get an MBA instead.

bluelaw2013

February 6th, 2016 at 4:10 PM ^

And your apparent math talent (720 GMAT), I'd go with accounting. More value added.

You'll probably find the math in finance to be somewhat intuitive; you can figure a lot of it out on your own as needed. The nuances of accounting, on the other hand, are not as intuitive but rather depend on a large body of generally accepted conventions that ultimately help constitute the language of business. When making decisions, it really helps to understand what goes behind the numbers.

So, based on what little you said and my own assumptions about you and what you're trying to do, my vote is for the MAcc.

jasgoblue

February 6th, 2016 at 4:14 PM ^

Definitely accounting. I say this as a guy with an MBA in Finance. Accounting is the language of finance IMO, it drives so much decisionmaking. You can learn most of finance on your own or as needed when you start working.

Owl

February 6th, 2016 at 5:30 PM ^

I don't understand why people do JD/MBAs. The people in my school's JD/MBA program have enjoyed pretty good law firm placement, but so have the regular old JDs. No idea what value the MBA adds to the JD.

The JD adds even less value to the MBA, I'd bet.

NSaad23

February 6th, 2016 at 8:03 PM ^

I agree. I did the CPA route in public accounting. Quickly moved on into corporate accounting then corporate FP&A, which is what you want if you have any CFO dreams. Earned my MBA while working, a pain, but worth it. I truly believe my Accounting/CPA foundation helps my success in my FP&A role.




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AVPBCI

February 6th, 2016 at 4:24 PM ^

You do accounting your limited

I'd almost consider an MBA and get the 150
And take the cpa..

That way you have the MBA and the credits if you want to be a cpa.

Gives you more options also

Kalamablue

February 6th, 2016 at 4:27 PM ^

Ok - I worked in Big 4 for about 5 years. It comes down to this - do you want to become an accountant or do you want some shot at high finance, aka banking. If you do not want to do I-banking, or transactional work, then do accounting. HOWEVA, if you're holding out for the chance to do high finance, then obviously pickup the finance degree. The accounting degree will give you stability from a career perspective, but the "sexier" degree is finance IF you get into a good MBA program. My 2 cents.

blue_shift

February 6th, 2016 at 5:10 PM ^

How are the current exit options from the Big 4? I know firm alums tend to go to lots of different places but I haven't seen a breakdown recently.

I'm almost wondering if it would be better to do accounting since it looks like some of the big banks and investment funds appear to be slashing staff. Seems like it might be potentially more stable than a career in finance.

Kalamablue

February 6th, 2016 at 5:40 PM ^

the exit opportunities are still good for Big 4.  With that being said, it's hard to make a blanket statement like that as there are so many different groups/functions, so it depends on what you're specialty is.  What I think will always be true though, is the longer you stay in, the better your opportunities will be on the exit.  I stuck around for the manager promotion, as once I had the title, my job opportunities opened up significantly.  

 

I definitely think though that accounting is a much more stable degree than finance.  With the accounting degree, you can do virtually any role that a finance degree requires, EXCEPT for banking, or anything seriously transactional.  

 

Overall though, I whole-heartedly recommend the accounting degree.  The only time I do not is if you can get into an elite MBA program, then I recommend staying in finance and shooting for any transacational (or buyer side) opportunities.

NFG

February 6th, 2016 at 4:24 PM ^

Business ethics. You never know when you'll need to answer a question on that when you're going head-to-head against some spoiled punk for ownership , who's daddy owned a hotel conglomerate.




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Lancer

February 6th, 2016 at 4:32 PM ^

I am doing my CFA now, as I complete my grad studies. I love finance and don't mind studying for the CFA, but I'll be forced to move to Toronto to make the best use of it. Once I am done my masters and pass level 3, I plan on getting my CPA. You can work anywhere with a CPA and it is a great asset in the finance sector if I do decide to stick to that route. 

004

February 6th, 2016 at 4:40 PM ^

If you have ethics - Accounting

If you don't - Finance

If you have a personality - Finance

If not - Accounting

If you want to be 'right' - Accounting

If you want to try to be rich - Finance

Somewhat kidding... Get the MBA with a lot of finance & accounting credits to make it worthwhile.

(Ross '01)

SAMgO

February 6th, 2016 at 4:42 PM ^

Could not roll my eyes harder at this. The vast majority of the financial services and investment banking universe is filled with well-intentioned, ethical, and somewhat nerdy people that operate well within the boundaries of the law and are very good at what they do.




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Yessir

February 6th, 2016 at 7:54 PM ^

My wife cannot stop laughing at this.  She says 'so true'.  +1  She has a finance degree, but ended up doing the accounting thing.  Controller, then consulting and educating.  Lots of hard work after college.

Goggles Paisano

February 7th, 2016 at 6:41 AM ^

If you want to be 'right' - Accounting

If you want to try to be rich - Finance

 

This was said tongue in cheek but is so true.  I have been a CPA for 23 years now with many of the latter years at the partner level.  I finally walked away from it to have a very small practice just for myself.  Public Accoutning is a very difficult and stressful profession filled with very long hours.  It took its toll on my life until I finally decided to make a change. With that all said, I can say that I never was compensated near what I thought I would when I entered the profession.  Many of my very wealthy clients are either in real estate or financial advisors.  If you can go out and create a nice book of business to manage, financial advisors can make a very nice living without the grueling effort that is required of a public accountant.  Deep six figure and even seven figure incomes for many FA's.  

Optimism Attache

February 6th, 2016 at 4:41 PM ^

If you want to take a leave of absence to study, then return to your organization and enjoy meteoric professional growth, I recommend a stint at a small prep school in Switzerland under an assumed identity. The specific course of study is irrelevant. In my experience, when you come back you'll literally be running the place. 

Z

February 6th, 2016 at 4:58 PM ^

I got a MAcc degree at UM so I could sit for the CPA. I don't see much value in that degree of you don't want to be a CPA. The biggest value of any advanced degree is the doors they open for you, not necessarily what you learn. Get an MBA, opens the most doors.

Schembo

February 6th, 2016 at 5:21 PM ^

If you go into accounting, definitely don't close the door on getting a CPA.  Alot of opportunities will open for you then and it can be difference between having your own office and being stuck in a cubicle every day.

wolverinebutt

February 6th, 2016 at 6:15 PM ^

My son got his Finance degree and stayed to get his MAcc becuase of the better job offers.

He got his CPA and has been doing great.  He told me the MAcc was the key.    

Boglehead

February 6th, 2016 at 6:49 PM ^

You'll have no problem with employment if you get the Accounting degree and the CPA. But not everyone wants to do that type of work.

The finance degree would help you land a broad financial analyst job, especially in the corporate non-Wall Street world. 

It really depends on what you'd rather do.

UMProud

February 6th, 2016 at 7:41 PM ^

If your paycheck is coming from accounting then get an accounting education. You can hey an MBA with a Finance focus later.

I would recommend you consider digging harder to find a job that matches your education. You already spent alot of money to pursue Economics. Try harder....

massblue

February 6th, 2016 at 8:56 PM ^

I have both of them with one from UM. Job opportunities are more with higher starting salary for accounting (assuming you have CPA for accounting and CFA or FRM for finance). I just did not like accounting and that is why I switched. Of course, it also depends on the reputation of the program and is specialty.




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jblaze

February 6th, 2016 at 9:07 PM ^

If you don't want to be in accounting or corporate finance then I'd suggest the MSF with a CFA, if you want to focus more on the investment side of finance. Otherwise, I'd suggest focusing on your CFA and then getting an MBA after you have passed a few of the CFA exams. That's pretty favorably viewed by MBA programs, especially with your GMAT. You can always explain your undergrad GOA with great essays.

My M MBA friend ahead a 2.7 undergrad GPA at a good/ very good liberal arts school and nobody seemed to care since he's a boss otherwise.