We Asked Accounting Majors What They’d Ask a New CPA

Spoiler: Busy season really is as bad as they say

The number of accounting degrees being awarded in colleges across the United States is at an all-time high. While many other facets of the American millennial workforce are reporting increased numbers in unemployment, demands for public accountants are on the rise, with over 250,000 students enrolled nation-wide. According to recent reports from the American Institute of Certified Public Accountants (AICPA), there is also a 5% increase in women partners, making the gender ratio at all firms about 52% men to 48% women — the closest to an even split in history.

With all these students primed for a professional career, we knew the stress levels must be running high. We called on two friends working at Big 4 firms to answer students’ burning questions.

Our experts:

Kay is an Experienced Associate at PricewaterhouseCoopers and she is graduate of the University of Pittsburgh.

Dominic works at Ernst & Young and he is a graduate of Marist College.

Now that you’re a year in, what was your path like and is there anything you would have done differently?

K: My path to the firm included multiple internships to get to know the different lines of services. I completed an internship in auditing the summer after my junior year which led to a full time offer before I started my senior year. If I did anything differently I would’ve gotten involved with the Big 4 earlier on. Now most firms have different experiences/programs over the summer for almost all levels and I think it is beneficial to get your foot in the door early.

D: I wish I had put less stress on myself in my first year. You really get a pass from people in terms of having to show the technical knowledge. I wouldn’t do anything drastically different except be more proactive and speak up because that’s all that your team really wants you to do in your first year. Show that you are willing to work hard and take on roles that you are not necessarily comfortable doing. That’s how you learn, by getting yourself in way over your head and then asking for help.

How did your expectations match the reality of your first year?

D: My expectation going into my first year was that I was going to be expected to have an answer for everything. However, after my first year at a Big Four firm, I realized that it was almost like an additional year of school. The learning curve is sharp, but there are plenty of resources to reach out to and your main responsibility is to show that you are understanding the logic and purpose behind the work you are assigned.

What was the toughest accounting task you’ve faced in your career thus far?

D: Keeping up with the SEC regulations and new accounting standards can be daunting due to the amount of regulatory agencies that exist and the ever changing political environment.

What was your most gratifying experience so far?

D: Being able to interact with high-level client personnel, such as Chief Finance Officers, Chief Operating Officers, and Chief Legal Counsels. Being able to network and build a brand for yourself is definitely a good feeling.

K: Being recognized by my managers and the client for bringing value to our engagement team. It’s really rewarding to get that feedback and see how much your hard work and attention to details and client needs makes a difference.

How do you relax after a day of work?

K: I go on runs to relax or make dinner at home.

D: After being inside an office all day (and night during busy season) I find it relaxing to get outside on the weekends and get as much fresh air as possible. And leave some time for self-reflection.

What do you love about your job?

K: I love my job because you begin to get a lot of responsibility quickly and the expectations are very high early on, but as you put in the time and show quality work you get more freedom and flexibility. We work a lot during the busy season but once that is over everyone takes time to relax and get back into a more standard schedule. I love that I can work from home or work a different set of hours based on what I prefer. The people I work with also make my job really rewarding.

D: Working with people in my age group on a daily basis. The oldest person on my team, besides the partner and senior manager, is 27. We can all relate to each other and share the same interests outside of work.

Is the actual work anything like accounting classes?

K: Sometimes we you first start it can be hard to draw the connection from accounting classes to your day-to-day work, but the longer you work in public accounting the more you begin to understand the bigger picture and how underlying accounting guidance applies.

D: My experience is in audit and in particular, the auditing of hedge funds and private equity funds. This word has been completely different than any accounting class I have taken, mainly because the classes I have taken focus on manufacturing companies or consumer product companies, etc. The hedge fund industry is completely different in their legal structuring and business modeling. Also, auditing courses are very abstract when you have never actually audited an entity before. I really think the only way to learn audit to actually go through one.

How terrible is busy season?

D: It’s definitely rough. Getting to work at 9:00 a.m. and knowing that the earliest you may get home is 10:30 or 11:00 p.m. isn’t easy for three straight months, plus the possibility of working on Saturday makes it worse. On the plus side, busy season for most industries is January through March so at least you’re not missing out on good weather. I also think the severity of busy season depends on your clients. People have very different experiences in public accounting and that’s due to the client they are put on. Some get lucky and are assigned to clients who have a long history with the firm and highly competent personnel. Others are not so lucky and get assigned to new clients or start-up clients who have no background in the industry, therefore making our job that much more difficult to do.

Did you work for a while before taking the CPA? How long did you study for it?

K: I began studying for the CPA after graduation in May and finished in October of the same year. I only worked for one month while studying. I committed to study 6–8 hours a day over the summer to be able to complete as many parts of the exam before beginning work.

D: I graduated in May 2015 and started working in late August 2015. I started studying in March of 2015 and was able to pass 3 of the 4 exams by the time I started in August. I had FAR (Financial Accounting and Reporting) left and took it and passed in early January 2016. I am very glad I had passed 3 of the 4 before working because studying after a day of working was extremely draining. Aim to pass as many parts as possible before you begin working.

Which portion of the CPA exam was the most difficult and why?

K: I think they were all challenging in their own way but Regulation was the most difficult for me. There is a lot of memorization it seemed like and a lot of content.

D: I would say Financial Accounting and Reporting (“FAR”) was the most difficult due to the sheer volume of material covered. The CPA exam is a very doable test as long as your are focused and keep yourself to a strict schedule.

How much pressure is there on me to finish my CPA exam before I start working?

K: I wouldn’t say there is pressure to finish the CPA exam before starting work because in reality only a limited amount of people I started with were in that situation. I think it shows a lot if you go into your first day at work having a plan for completing the exam, and if you had time off over the summer that you utilized that.

D: It is highly suggested to pass all parts before you start working, however I know many people who haven’t passed it yet, but they regret not studying earlier.

What is your #1 study tip for the CPA exam?

K: The best study tip would be to just commit the time to studying. It takes a lot of time and effort so understanding that from the beginning and setting a plan will make you more successful. If you are following a prep course find the plan that seems to fit you the best and stick to that plan as much as possible.

D: Go all in. You cant just study for a few hours a week. It has to be a real commitment. Look at it like a full-time job even if you are already working.

Any other exam advice?

K: I would take advantage of any free time after graduation before you start work. You won’t get free time off like this again and should prioritize it to set yourself up for success once you start working. At the same time definitely take time to relax and enjoy time off before starting work!

D: I was able to pass the CPA exam by having a clear study plan. I didn’t allow myself to deviate off schedule and knew exactly what chapters I needed to be done with certain weeks. Its important to remember that the exam is only given during certain months of the year so you have to plan accordingly. The rule that once you pass your first exam, you only have 18 months (at least that was the requirement when I took it) to pass the remaining three, is also important to keep in mind.

What are some typical kinds of writing you do?

K: Most of the writing I do is documentation specific to certain auditing procedures we perform. Auditing consists of a lot of writing and trying to take your understanding of a certain matter and documenting it so that others can understand the details behind it.

D: I was surprised to find that auditing entailed a lot of detailed writing. Everything you do in audit has to be very detailed so that if another auditor or regulator came to inspect your work, they could re-perform everything you do by reading your procedures. There are a lot of memorandums that written whenever a unique situation arises. If you are testing an account in a different way than the industry guidance suggests, we have extremely detailed and lengthy memos describing our thought process. Accounting is definitely not all math.

What types of software do you use daily?

K: Daily I use our database that houses all of the audit documentation. The databases and tools will probably be specific to the firm you choose.

D: Microsoft Excel is the main software program. Other software programs are all proprietary firm software not available to outside users. I would suggest anyone going into public accounting and wanting to make a great first impression is to learn some Visual Basic programming (VBA). This will allow you to automate a lot of manual work and save countless hours of monkey work so you can focus on the areas that require critical thinking.

What do you see most new employees struggling with?

K: Being able to consolidate questions they come across and troubleshoot the questions. It takes time and practice to be able to come to your superiors with a suggested solution to a problem rather than asking them what to do.

D: Definitely speaking up and asking questions. If you don’t understand something you just have to ask. Even partners still ask questions, no one has all the answers.

Do you ever wish you chose private accounting?

D: No, I think public accounting is the best way to start a career in accounting. It’s no secret that many people leave public accounting after a few years to go private, and for good reason. Being able to have a big four name on your resume or LinkedIn profile holds a lot of weight. I receive LinkedIn messages on an almost daily basis from recruiters who list job opportunities that would double or even triple my current pay. So I don’t think starting private is the way to go. Go public and learn as much as you can until you feel the time is right to move onto a higher paying private job with better work/life balance. Public accounting gives you a lot of exposure to a variety of different client types so that you can find out what kind of private job you may be interested in.

It should be noted that these CPAs answered our questions in the height of busy season, so extra special thanks are given!