Getting a Masters in Accounting (MSA) is a waste of money, but aspiring accountants everywhere continue to struggle with whether or not to pursue this advanced degree.
For starters, you have the fact that most states require 150 hours of education to become a licensed CPA. You also have the traditional idea that more education automatically means better job prospects.
A Masters in Accounting certainly would help take care of the educational requirements, but it’s not the only option. When I realized having the 150 hours would make pursuing the CPA more transferrable, I did two things. First, I started overloading on courses wherever I could before completing my undergrad (no extra cost).
Second, I enrolled in community college courses. In California, I was able to enroll in a course for less than $80 and in Illinois, I was able to do so for a little more than $300. While tuition has gone up since then, the fact that a Masters in Accounting comes at a price premium remains the same.
Masters in Accounting preferred?
Not really…
How many times have you seen a job description state “Masters in Accounting preferred”? I consider myself someone who pays attention to this and you know what I see? In corporate accounting, I see a lot of companies where Certified Public Accountant (CPA) or Master of Business Administration (MBA) is preferred. In tax, having a Masters in Tax (MST) or law degree (JD) can open the right doors.
Even in this U.S. News article from 2014 where it indicates employers are looking to hire more students with the Masters in Accounting, it still suggests getting certified as either a CPA or Certified Management Accountant.
What does that tell you? It tells you the Masters in Accounting is not the target for aspiring accountants. If that path works for your then go for it, but don’t let others convince you that you can’t take a different route to the same place. And if you can get to the end goal in a more affordable manner, isn’t that worth considering, at least?
Stephanie N. Stewart says
December 30, 2015 at 9:39 PMGreat article. I recently completed my B. A. in History and, after separating from the military am looking to transition into the field of accounting. Many of the admissions counselors that I speak with advise against completing a second undergrad accounting degree and instead suggest I look into an MSA or MAac for non-traditional accounting undergrads to obtain the requisite education requirements and prepare for the CPA exam. I’d be curious to know if you would still advise looking into an MBA (over a graduate level accounting program) in this instance …
Eric says
December 31, 2015 at 11:33 AMHi Stephanie – give you undergrad, you will need to be mindful of your state’s requirements on educational content. If you can cover them with an MBA, I feel like that degree still holds value even if you don’t end up getting the CPA. I don’t think the same can be said about the Masters in Accounting.
If you go the MBA route, you’ll want to be mindful that you won’t have as much breadth in covering accounting topics, so you’ll want to be very diligent about CPA exam prep, whether that is self-study or you enroll in some other class.
Sydney says
January 2, 2016 at 8:43 PMI really want my undergrad degree in accounting but I am concerned with never learning the material well enough or failing out. How do I silence these fears and go for my dream of being a successful accountant?
Eric says
January 2, 2016 at 11:17 PMWhy do you have these fears? Is it college courses in general or is it specific to the accounting courses? My advice to you would be to try an accounting class and see what happens. Make good use of office hours and any study sessions available if you’re having trouble.
Sydney says
January 3, 2016 at 4:35 PMWell, I feel like my path was always determined to be something in fashion but now I don’t think that would fulfill me educationally enough. I go to school on financial aid and am afraid to take a chance on a major I might fail on but if I succeeded with would be very proud of myself. I am afraid of wasting time on a major that I might fail at when I could continue on my path of a marketing degree and have no problem at all. In the end I just don’t think I have what it takes to be an accountant.
Eric says
January 3, 2016 at 4:43 PMIt sounds like your confidence is a little shaky. I went to school on full financial aid myself, so I know the pressure that brings. If you’re early in your collegiate career, there’s minimal risk to taking the intro-level accounting course and seeing how it feels. If you want it, I’m sure you can make it work. If you want the career in marketing, that’s fine too.
Sydney says
January 3, 2016 at 5:40 PMI have been in college for a while and just turned 22 so I really feel the pressure of graduating. I took principles of accounting last semester and really liked it but got an “F” on my final, so my confidence on my abilities are low.
reality_check says
January 17, 2016 at 12:27 PMI agree. I recommend accounting undergrads to get either an MBA or a Master in Finance. The Master of Accounting is a useless degree, especially for someone with an accounting undergrad. Now, if you don’t have an accounting undergraduate, then it could be a viable option for you; otherwise, stick with something more marketable.
Eric says
January 17, 2016 at 9:55 PMIt’s strange to me how many accounting majors get the masters in accounting, almost like they’re being brainwashed that it’s the only way.
Imma says
January 26, 2016 at 10:11 AMI am in a sort of of conundrum and fork in the road career wise. I have been in the finance industry for at least 20 yrs. I do not have a real “career” to hang my hat on. My experience ranges from loan processor to intake specialist but I have been unable to secure a coveted underwriting title, which I preferred, so that I could transfer my skills and secure a better income. I also do not have a college degree, which has somewhat hampered my ability to get jobs. I do have tax preparation experience, and have considered accounting, which I could complete at my local college. I’m nervous about transitioning at this late age in my life,and have been following your articles. I am a minority female, I worry about getting into an industry that is male dominated and lacks diversity.
Eric says
January 26, 2016 at 11:03 PM@Immajackson:disqus I have seen some career switchers later in life, despite people thinking accounting is a field best suited for fresh college grads. If it’s something that interests you, I would say try it. There’s nothing to say you can’t go back to what you’re doing now if it doesn’t work out.
When you say you have interest in accounting, are you talking more audit or would you want to pursue tax as your specialty? There are many options for people with accounting backgrounds, but you have to be patient if you pursue the goal in a non-traditional way, like the community college option.
Imma says
February 2, 2016 at 7:34 AMThanks Eric, I would actually like to pursue a tax specialty, since that’s what I’m most experienced and comfortable doing. I’m trying to determine the best path to get there. Appreciate your advice.
Eric says
February 5, 2016 at 2:33 PM@Immajackson:disqus If you’re doing tax, I think you have some additional considerations. MST and JD both seem to have a lot of credibility in the marketplace. You could of course still do CPA but if you’re going advanced degree and want to do tax, I would take a look at the MST option for sure.
Jaime Wesley says
May 13, 2016 at 6:50 AMHi Eric,
I just started following you and am enjoying your posts. I have a question. I have an undergrad in Political Science and a MBA but not enough credits to sit for the CPA exam in IL or IN. I know I need 8 more accounting courses. I’m not sure if I should just take the classes that I need at a community college and the rest at a university or try to see if there is a program that would allow me to get another BA or MS? I just want the credit hours, I really could care less about another degree. But someone mentioned, “well if you need all those hours, you might as well get another degree.” Your thoughts?
Eric Butts says
May 13, 2016 at 7:28 AMI’m with you, Jaime. If the community college option is cheaper, I go for the hours. Especially if you already have an MBA.
reality_check says
October 10, 2016 at 10:49 PMHow does one complete an undergraduate AND an MBA and not have 150 credit hours?
Eric Butts says
October 11, 2016 at 12:21 AMI was thinking about the other hours number, specific to accounting, which used to be 24 I think in Illinois. I can’t imagine 150 being the issue in this case.
Lori says
November 26, 2016 at 6:29 AMThe benefits of taking/passing cpa exam after being out of school for 20+ years? I have an undergrad degree in accounting and 150+ accounting hours.
Eric Butts says
November 28, 2016 at 12:28 AMHi Lori – what position are you in now and where do you want to go? I think that probably will determine what makes the most sense. If you’re happy where you are and able to progress, then the CPA may not do much for you.