Accounting Professors Discuss Today’s Accounting Majors

We lead a monthly roundtable of 25 of Chicago’s largest local CPA firms. Recently, our guests were: (Pictured L to R) Dr. Brian Stanko, Head of Accounting Department, Loyola University, and Dr. Somnath Das, Head of Accounting Department, University of Illinois at Chicago.

Enrollment of accounting majors is strong. The schools are pretty much maxed out. Freshmen can now take accounting courses. Good grades are needed to remain an accounting major.

The professor shortage. This has been a continuing problem across the country for 10 years that will probably worsen before it improves because a large number of current professors are in their late 50s and 60s. Some universities have had to curtail or eliminate PhD accounting programs due to the reduced numbers of students pursuing these degrees. Obstacles continue to be (1) the time required to complete the education – master’s degree plus 5-year PhD program, (2) accreditation authorities restricting universities from hiring veteran CPA firm personnel, who are often better teachers of undergraduate accounting than PhD professors, and (3) the limited income that graduate students earn while they complete their long education.

The professors disclosed the starting salary these days for recently graduated PhD professors (who have yet to teach their first course first course): $180,000 to $200,000.

Local firms need to lobby with universities if they expect to have a chance to compete with “the big firms.” The big firms are working hard to establish long-lasting contacts with students as early as their freshman year. Local firms interested in recruiting on specific campuses need to stay visible: Participate in “meet the firms” events, ask to visit classrooms and talk to students, and participate in mock interviews. Both professors said that when firms temporarily pull out of campus recruiting, it’s very difficult to come back in because the students won’t know who you are. When firms maintain a presence on campus year after year, the students remember their names.

What students are most interested to hear from firms.  How many hours will I be required to work? What is work-life balance like at your firm? How much flexibility will I have in setting work hours? Interesting that both professors didn’t think that compensation was important, but this is because the vast majority of firms offer very similar salaries and benefits. This is one of those questions where the answer depends on the context in which it is asked: A recent survey sponsored by Ernst & Young and The University of Texas showed compensation to be the #1 differentiators that students consider in accepting job offers.

Internships continue to be a major activity that both students and firms engage in with a high degree of success and satisfaction. Loyola gives 6 hours of general university credit for semester-long internships. If students experience a good internship, they spread the word among their friends about the firm.

Today’s students. Social media has a huge impact on students’ lives. Dr. Das called Social Media “a necessary evil.” These days, professors are never sure if students even buy, let alone read the textbooks. This frustrates the professors because they feel the students aren’t getting the depth of knowledge that they need. Lectures are available on line. Students are used to working when they please. Other traits:
• They are very good at researching on the web.
• Not afraid of anything; not afraid of failing.
• Good at solving problems.
• They can’t study for long periods of time.
• Shorter attention span.
• Simple writing skills are weak.

Today’s students have a lot more interest in international experiences. They do a lot more international travel that Baby Boomers did when they were students.

If your firm is actively recruiting – and hiring – recent college grads – our Monograph How CPA Firms Work: The Business of Public Accounting is an excellent resource for your interns and new hires to become familiar with the inner workings of the typical CPA firm.