.:Big Four Specilizations:.

      Okay, so you have your heart set on the Big Four and you now hold the keys to having a successful interview with them.  But the real problem is figuring where is the best fit for you in the company (*drum roll please* Everyone, this is where I figured out that my best fit is to go into Advisory and Consulting as opposed to the other accounting areas, which is why I now want to become a Financial Consultant--please refer back to my very first post to understand what I mean).  And as per usual, all the information have been derived from business professionals specializing in each area; I merely took what they said and elaborated upon them in my own words.  These professionals came from all over the United States just to present to UCSD students at the Career Services Center and for that I am ever grateful.

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   Now, as mentioned in one of the previous blogs, the Big Four specialize in four major sectors of the business industry: auditing and assurance, advisory and consulting, transactions and mergers and acquisitions, and tax.  So in this blog I will do my best to define each sector so you have a better idea where you want to apply so that you can have an enjoyable career.
 

Auditing & Assurance

     There is always a risk of failure in conducting business and when this happens companies are prone to providing false financial statements to avoid acknowledging this failure.  Concealing the problem is a way to allow the company to continue functioning as if nothing has happened, but this is worrisome to investors who are supporting the companies or to other businesses who are considering buying or partnering up with the company.  Because in the business world there are complex issues that take place which are both time sensitive and can pose major consequences to those caught in the loop.  One failed transaction can mean wiping out someone's entire life's savings in one foul swoop, and often times this happens without the investors even knowing because they do not visit their client sites on a consistent basis.

     More than just business failure, there is a also a risk of false or misleading information provided by companies who want to make their businesses look more profitable and marketable than they really are. 

     This is why we have assurance people (such as auditors) who come in to assess the financial situation at a given business by personally going over their financial records and documents.  Auditors have the ability to testify whether or not a business is reporting truthfully on their financial statements and can question the businesses they are auditing for any inquiries posed by them or by their employers.  Thus they are able to improve the quality of information being relayed to outsiders by being able to provide a more accurate picture of the business in question and this new context will allow investors to make a more knowledgeable decision and better judgment when dealing with the client.

Advisory & Consulting

     Businesses are constantly competing with one another and in order to stay on top they must constantly be receiving reliable information regarding what consumers are looking for, what will make the process more efficient and what is a good price to ask.  Hence companies employ advisors such as consultants to come over and take reign over one specific business matter that needs to be looked into and improved.

     Consultants come in to provide competitor insight on other markets who are providing the same products.  They will do research on another company who is successful in the same field and look at historical examples about the decisions certain companies made to stay on top.  After gathering the information and analyzing it, they will come up with a plan to help the company hiring them for their advisory services and carry out the solution, but it goes much deeper than that.

     Essentially, the consultants must take into consideration what the company hiring them is actually capable of doing by taking into account their strengths, weaknesses and constraints.  The strategy must be unique and practical and must involve profits and long term benefits.  Not only must they know everything about the product, but they have to be able to sell it for just the right place attracting both first time consumers and customers from other areas to ensure the business who hired them for advice will continue to thrive in the long run.

Transactions & Mergers & Acquisitions

     Aside from competing businesses are also looking for potential business partners and other smaller companies that will make a great addition to a larger one.  Hence, mergers and acquisitions are constantly happening all over, I will explain what these mean.
When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded.

      In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place.
     
A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. But when the deal is unfriendly - that is, when the target company does not want to be purchased - it is always regarded as an acquisition.

      In practice, however, actual mergers of equals don't happen very often. Usually, one company will buy another and, as part of the deal's terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it's technically an acquisition. Being bought out often carries negative connotations, therefore, by describing the deal as a merger, deal makers and top managers try to make the takeover more palatable.

     And in order for these transactions to take place, firms need people to take over the handling of these financial trades to ensure its authenticity.  So this is the calling for anyone interested in helping to settle deals between two companies.

Tax

     So we are all familiar with doing our own taxes right?  And if we ever have trouble we look for a tax specialist to help us.  Oftentimes these people are tax accountants who may have their CPAs or are in the process of getting one.  Of course these specialists aren’t limited to just doing ordinary taxes for a part-timer or even full-timer, they also do taxes for corporations, large companies, firms and all sorts of small businesses.  They calculate how much taxes a company will incur for its various transactions and deduct it from the total revenue.  They come up with strategies to defer taxes in terms of how they treat expenses, how they create personal income statements and how they deal with mergers and acquisitions.  After all, depending on when and how you acquire something can be a huge difference between paying a lot of taxes, very little or none at all.

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     Hopefully, these have helped clarify a few things about the different sectors you can work for in the Big 4 ^_^
      You should now be well-versed in the different job sectors available in the accounting firms.  Many people who work for the Big Four are not subject to dealing with data entries and calculations on a daily basis (which are all part of the mundane accounting routine).  They can choose a different sector they want to specialize in which is why it is important to understand the differentiations, so read read read!!
     After all this research I have found my fit as a financial consultant.  Have you found yours?

.:Interview Process: Life is a Stage:.

      Alrighty, so you have your heart set on working for the Big Four (at least I do).  Well as the top four accounting firms not just in the nation, but worldwide, it is definitely not easy to land a job.  So what should you do?  Well here are some steps to help lead you along so you get a head start against all the other interviewees.  I also took these steps for some of my interviews (I'm still in the process of them so there's not much I can share with you guys X_X sorry).  But the following does help and they mainly pertain to people interviewing for the Big 4. (A/N: Insights have been given by spokespeople who came to represent their companies during open info sessions at the UCSD Career Services Center).

Practice Early

     For students, some firms start the interview process as early as sophomore year. By the time students are juniors and seniors in college, most likely the recruiters have already begun to recognize the candidates they potentially want, so if you start networking then you might already be a step behind.  Nevertheless, do not be discouraged and send in an application anyways.  (I just started sending in applications, but I know some of my friends already landed internships last year, so you better start early, you know the phrase: early bird gets the worms.  Yeah it's something like that).

First Impressions Count

     If you make the first cut, you'll be called for an on-campus interview. You'll be judged on appearance, so wear a dark suit with a conservative shirt. Men need a tie. No flip-flops, sneakers or ear piercings.  Arrive early, because showing up even a minute late reflects poorly on you—obviously, this is all very basic if you’re serious about getting the job that is.

     All four firms do behavioral interview questions which means they will ask you to give a scenario where there was a problem which you had to provide a solution for.  Most people will probably reflect on something they’ve accomplish in their past experiences, so now that you know this is a requirement start practicing!!

Making It to the Next Round

    Who gets cut first?  Individuals who show up dressed in inappropriate attire and those who are obviously just disinterested in the position (Duh…why are you there and screwing up the chance for someone else in the first place?)

    Be ready to talk about why you're interested in working for this particular company.  This is another basic technique.  You obviously want to do your homework before applying position because employers want to know that you are interested and know what you’re getting yourself into.

     Of course, don't be disappointed if you don't make the cut. Typically out of fifty interviewed students only 10-12 will make the cut to the second round of interviewing.  (Ouch, that’s a harsh reality, but hey keep your head held high.)  I'm not sure how many applied, but in my case only 12 people qualified for the first round of interviews recently at UCSD--I do not wish to disclose which firm.

 Meeting in Person

     The next round will include sequential behavioral interviews with three or more partners and managers, as well as criminal background and credit checks.

At this point, interview questions are aimed at getting to know you and be prepared for lunch with other candidates and last year's hires. While you're eating, you're still interviewing. During the meal, expect personal questions and watch your manners, LoL.

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Hopefully this blog has given you the understanding you need to interview for any of the Big Four.  To summarize, the Big Four will pick candidates to interview at various college campuses they visit.  You will be expected to go through between two-three interview rounds, depending on how they decide to structure their interview process.  If you make it to the final round they will invite you to a classy dinner in order to assess your business etiquette and social skills to see how well you can present yourself and get out of your own comfort zone.  This is why you should watch the videos to get a bigger confidence boost.  Good luck!!

.:The Big Four:.

     Continuing from last time, long story short I wanted to become an accountant and started taking courses to prepare myself for the CPA (please see my previous posts to get the whole picture).  But all of this is useless if I don't have a place to work for once I graduate.  So I started looking up some of the best places to launch an accounting career upon graduation and here is what I came up with: The BIG 4.  (A/N: Information and statistics have been derived from the VAULT career guide book available in the UCSD Career Services Center).

     In the realm of business the Big Four stands for the four largest accounting and professional service provider firms in the world.  These four international agencies are: Deloitte, PwC, Ernst & Young, and KPMG and they specialize in some or all of the following business sectors: auditing and assurance, advisory and consulting, transactions and mergers and acquisitions, and tax.  I will explain what all these mean in a later post.  For now I will focus on the Big Four.

     Deloitte is headquartered in New York and currently has an estimated one hundred and seventy thousand employees globally.  It is the largest company of the Big Four and one of their main highlights, which distinguish them from the other firms, is their emphasis on using Business Technology to solve problems particularly in the realm of consulting.  This means consultants often use computer technology such as: software programming, computer designing and other technical skills to solve a client’s problem(s).  They also have a huge emphasis on social and cultural diversity and are often seen as a large co-ed fraternity type—so hip hip for party-goers who like doing business.

     PWC which is short for PricewaterhouseCoopers is the second largest company of the Big Four.  It employs over one hundred sixty thousand employees globally and has a very high employee growth rate.  Headquartered in the United Kingdom (London to be precise), PWC is considered safe, steady and one of Fortune 100’s best places to launch a career.  It has encountered few lawsuits over its rich history and is over all a very fast growing firm, coming in close to Deloitte’s #1.

     Ernst and Young, headquartered in New York City currently employees over one and forty thousand employees globally.  It is one of the best career places for working mothers as this firm is one of the few who actively promotes women’s rights and women’s equality.  During one of their networking sessions at UCSD that I attended, I distinctly remember all the members representing the company were females so it’s a great place to launch a career for the modern woman and according to Forbes’ it was the #1 place to launch a career in 2008.  Moreover, it boasts as the #1 tax consulting firm in the United States.

     KPMG is based in the Netherlands and has a huge emphasis on sports.  It is said that employees often have sports competitions such as soccer on a weekly basis and they actually get to take time off for that.  It has consistently been one of the top four places to work for every year, and currently has over one hundred thirty eight thousand employees working there internationally.

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Hope you enjoyed the overview.  After reading this blog you should have gained important statistics that I learned from attending info sessions at the UCSD Career Service Center and conferences hosted by the UCSD Undergraduate Accounting Society, where keynote speakers from each of the companies above (professionally coined "The Big Four" in the business realm) came to UCSD to present claims about their companies--what makes them special and why they are good places to launch a career after graduation.

.:Ever Heard of CPA?:.

     So as I said before I wanted to become an accountant and the best way to ensure that I can work anywhere in the world as an accountant is to get my CPA.  To do so I have to meet the requirements to take the test (I am currently doing so right now with my accounting minor).  You can check out the courses offered at UCSD @ http://management.ucsd.edu/undergrad/accounting/.  Of course if you aren't enrolled at UCSD you can still take the same courses at any other academic institution that offers them.  What's important is taking the courses to qualify for the exam and not whether you major or minor in accounting.  

     So what exactly is the CPA and how do you qualify to sit for the exam?  Read on, find out and STUDY STUDY STUDY!!! (A/N: the following information have been derived from lectures from professors who teach intro to accounting classes at UCSD) .

     CPA stands for Certified Public Accountant.  It acts both as a title and as a license.  You can practice accounting with or without becoming a CPA; however, if you're aiming for a promotion or thinking about doing accounting in other states or other countries then passing the CPA exam is the best, and most likely the only, way to go.  This is because the CPA license proves that you have thoroughly understood and mastered the entire standard accounting procedures and skills applied to businesses throughout the world.  Acquiring the CPA license and becoming a CPA is equivalent to attaining an international accounting passport.

     Not surprisingly, such a prodigious travel pass cannot be obtained easily.  It can only be achieved through hard work and preservation.  There are two different routes that qualify a candidate to take the CPA exam outlined in the following:

.:Pathway 1:.

Designed for individuals who will practice only in California and requires:

• A bachelor’s degree;
• 24 semester units in accounting-related subjects;
• 24 semester units in business-related subjects (accounting courses beyond the 24 required units may apply toward the business units);
• Passing the Uniform CPA Exam;
• Two years of general accounting experience supervised by a CPA with an active license; and
• Passing an ethics course.

.:Pathway 2:.

If you are licensed under this pathway, the majority of other states will recognize your license. If you think that someday you might want to practice in another state, Pathway 2 may provide you the professional mobility you desire. Requirements:

•  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 course.  

  

     Since I am a Californian and do not plan on living abroad, either route will get me to the same place.  However, if you do not fall into the same category as me, then your best bet will be to undergo Pathway 2 since it is the standard route for most people who want their CPAs.  

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After reading this blog you should gain the insight you need to understand what the CPA is, why it is important, and know what classes and experiences you are required to take in order to sit for the exam.

.:Accounting Job Outlook:.

     Hello, let me give you a brief introduction about me and my goal for readers who read my blog.  I am a third year UCSD student majoring in Communication and minoring in Accounting.  My ultimate career goal in life is to become a financial consultant; though my original goal is to become an accountant with a CPA.  Why did I change?  Well this blog represents how my interest in accounting eventually evolved into my desire to become a financial consultant.  Don't worry if you don't understand the terminology I am using.  Here I will explain everything from what accounting entails, to different career paths in the future to how to land a job.  So let us all embark on this journey together.  First, let's start off with what you can expect from the job market.

     As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information reviewed by accountants and auditors regarding costs, expenditures, taxes, and internal controls will expand as well. The continued globalization of business will also lead to more demand for accounting expertise and services related to international trade and accounting rules and international mergers and acquisition.

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     So not surprisingly, accounting is ranked as one of the top two careers in the nation offering the most job openings for fresh out of college graduates.  There’s an estimated 22% annual growth in the industry and by the year 2018 it is expected that more than half a million new accounting positions will be created waiting to be filled.  Of course job opportunities for accountants and auditors will be most favorable and advantageous to those who have earned their CPAs or obtained a master’s degree in Business Administration.  However, students who earn a Bachelor of Commerce or related degree with a focus on accounting can also work in other jobs including management consulting, finance, marketing, human resources and entrepreneurship.

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     Now that you have the degree, what can you expect to earn?  Well the median annual wages of wage and salary accountants and auditors were $59,430 in May 2008. The middle half of the occupation earned between $45,900 and $78,210. The bottom 10 percent earned less than $36,720, and the top 10 percent earned more than $102,380. Median annual wages in the industries employing the largest numbers of accountants and auditors were as follows:

Accounting, tax prep, bookkeeping, and payroll	$61,480
Management of companies and enterprises	59,820
Insurance carriers	59,550
Local government	53,660
State government	51,250

[Statistics derived from http://www.bls.gov/oco/ocos001.htm#projections_data]


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These statistics are here to help you realize what you can expect in terms of entry level salary and job growth rate in the accounting market today.  It is to entice your interest in this field or at the very least educate you on the surface level what kinds of opportunities you can find in the accounting field.