REASON #1: ACCOUNTING IS THE LANGUAGE OF BUSINESS

Businesses exist to serve the needs of others in a way that keeps the business growing (i.e., in a profitable way). How do you tell the story of a business in a way that most people will agree on? How can you get a sense of what happened and how the company has grown, where it needs to take a closer look, or what risks it may have impending? By understanding how the money moves in and out of the business, which is achieved through accounting.

You want to be an entrepreneur? Study accounting. Want to “be in business”? Study accounting. Want to do investing or investment banking? Study accounting. Don’t know what you want to study? Your best and safest bet will be accounting. Not only will you graduate with an actual skillset based on debits and credits, but you will have many doors open that would have remained shut otherwise.

REASON #2: STABILITY & GROWTH  

Usually you sacrifice growth for stability or stability for growth. These two rarely hold hands and aren’t really friends.

But in the next ten years in the accounting industry, you will be able to have your cake and eat it, too. Among other factors, that’s because 75% of CPA’s will be retiring in the next 15 years, and there will be a huge spike in demand for accounting expertise (in fact, it has already begun).

Not only is the profession already stable and resilient during market downturns, but now it is also growing and requiring more investment to attract and retain talent. Who doesn’t want a stable career with predictable, regular, and at times, accelerated growth?

Whether you start in public accounting and then transition into private accounting or not, the fact remains–you should study accounting. (If you’d like to hear our thoughts on public vs. private accounting, we go more in depth here.)

Even if you don’t actually get an accounting job, having an accounting background will prime the pump for management. Someone who knows how to interpret financial statements and ask the right questions around financial reports is highly desirable. An accounting degree gives you a great foundation for a business career full of promise and growth.

REASON #3: A GENERAL BUSINESS DEGREE ISN’T GOOD ENOUGH ANYMORE 

If you want to be in business and make money, that’s fine. A business degree, however, won’t do you much good (vs. an MBA later, although that’s also questionable). That’s what most people pick when they don’t know what they want to do, which turns out is a lot of people because picking a major can be a tough decision. But if you graduate with a business degree you’re one among thousands. Graduate with an accounting degree, however, and you’re one among hundreds. 

Why so few graduates? Public Accounting gets a bad reputation because the profession hasn’t done a good job in promoting the benefits of the career. Traditionally there have been long hours during busy season, small bonus payouts, and not everyone makes Partner (although that carrot is constantly being dangled). But that is more so the case at large firms, and things are changing. 

But the reality is many business owners don’t have an accounting background and it increases their chances of getting in their own way because they don’t speak the language of business (see #1 above). Most business degrees will give you a breadth of understanding, but very little depth. In 2011 a bombshell of a book dropped called Academically Adrift, in which the authors found that at least 45% of students don’t learn much their first two years of college.  

Finance degrees aren’t bad, either. The problem is that the job market is tough for entry-level folks in Miami, and more broadly, South Florida. We’re not New York. So unless you’re zeroed in on banking you may want to consider at least double-majoring in Accounting too. You may have heard this already, but it’s more difficult for people with finance backgrounds to switch over into accounting than people with accounting backgrounds to switch over into finance. Again, the language of business. 

You’re best bet? If you are even remotely on the fence about what you should study, but you want to have a career “in business” then don’t get a general business degree or a finance degree because it won’t set you up for your first job. Major in Accounting and  then find another major that complements it. Finance is a solid choice. But so is something outside of business that forces you to write (e.g., English or Philosophy). Being able to communicate your thoughts in an articulate way is more in demand these days. Do these thing and watch how people start to take interest in your future. 

REASON #4: YOU WILL BE MORE HELPFUL TO YOUR FAMILY, FRIENDS, AND GENERAL NETWORK

Financial stress is one of the biggest burdens our family and friends carry. Having an accounting background will help you help alleviate them of this stress.  

Whether it’s with budgeting, financial analysis, tracking expenses or even doing taxes, you will be better equipped to help people navigate these challenges. Your accounting mind will help them think through and navigate the myriad of financial decisions that come their way. 

If you end up doing tax in a public accounting firm, you’ll be even more soundly equipped to help with family businesses, new ventures, and investments. Setting up a family estate or trust could also be in your wheelhouse. And your advice could help your family and friends put their kids through college, or take care of an aging parent, or have extra spending money to save for the future. In fact, if you work at a small or mid-sized accounting firm as opposed to a large one, you’ll be even better equipped to support your family and extended network because your clients will be people like them. And that’s meaningful stuff. Learn more about the different sizes of accounting firms here. 

REASON #5: YOU CAN MAKE A REAL DIFFERENCE

This is perhaps more true of small and mid-sized public accounting firms. When working in a smaller firm your interaction with the client will be with real people who have a stake in the company’s future. The clients of small and mid-sized firms are small and mid-sized businesses, who really need help. According to the U.S. Small Business Association Office of Advocacy, approximately 32% of small businesses fail in the first two years, about 51% fail within five years, about 66% fail within 10 years, and roughly 74% fail within 15 years (see page three).

A lot of these small business owners do not have someone to talk to about their business. They don’t have a board or a mentor or a business coach and so they stumble through success most of the time. Being their accountant gives you a seat at the inner circle of confidants, and the insight and advice you give could help them through some tough times. Helping them save on their taxes, or think through their accounting procedures, or decide whether to invest here or there based on financial reports that you generate–those things have real impact on the lives of real people. This is meaningful work for people trying to make the world a better place by providing a service to the market at large, although it’s usually locally focused.

BONUS REASON: WARREN BUFFET & MARK CUBAN SAID SO

Both Warren Buffet and Mark Cuban have emphasized the importance of understanding accounting. Warren Buffet, one of the most successful investors in the world, has repeatedly stated that accounting knowledge is essential for evaluating companies and making investment decisions.

Similarly, Mark Cuban, a successful entrepreneur and investor, advocates for understanding accounting to gain a competitive edge in business. Their endorsements highlight the value and importance of accounting skills in achieving business success.

This post was written without the use of Artificial Intelligence. Why this matters.