Even though many changes in accounting have occurred over the past years, student interest has remained fairly stable.  The future of accounting promises even more exciting changes, providing a variety of new opportunities and experiences.   

A Stable Career  

For much of the 1990s, the business world has undergone several changes, three of which are most noteworthy.  First, with the creation of formal regional trade agreements such as NAFTA and the European Union, companies have shifted major parts of their marketing and production activities abroad.  Second, the explosive introduction and growth of new technologies have significantly improved the productivity levels of American workers, as well as the quality of American products.  Finally, the growth of the entrepreneurial and small business sector has provided the most dynamic aspect of U.S economic growth, as well as the most significant creation of new job opportunities.  

Despite these rapid changes, one thing has remained relatively certain: Career opportunities in accounting have remained very stable.  As long as companies, whether large or small, must prepare various financial records for both internal and external use, the world will always need accountants.  Despite the recent turbulence in the world's financial markets, despite all the talk about corporate downsizing, accounting graduates continue to find a healthy employment market.   

Misperceptions about Accounting and Accountants  

Many university students misunderstand the accounting profession.  "Formerly, accounting was thought of as just bookkeeping, and accountants were referred to as 'bean counters' who simply tabulated numbers all day," says Sabrinna McTier, an African-American student and graduating senior at the Haas School of Business, UC Berkeley.  Jessica Paige, another African-American senior at Haas, echoes this sentiment.  "When I was a freshman, I wasn't very aware of accounting.  I had decided that I would pursue a career in finance.  I imagined accountants stuck in offices all day, hovering over calculators."  

Most students don't realize just how dynamic the accounting profession has become.  According to McTier, "The accounting profession has changed a great deal.  Before, what was most important for accounting professionals was that they were good with numbers.  Today, accountants are required to possess good interpersonal skills."  Paige adds, "Accounting is becoming much more consulting-oriented.  It's not enough any more to just record and analyze clients' records.  Now, accountants must advise their clients on how to improve their businesses.  Job descriptions of accountants are definitely expanding."   

Public and Private Accounting  

Career opportunities in accounting fall most broadly into two categories: public and private.  Public accounting firms range from one-person operations to large multinational organizations that employ thousands of professionals.  They provide a variety of services to their clients, who are usually individuals or other businesses.  Most often, career paths in public accounting are either in audit or tax.  The task of audit professionals-as the word implies-is to carefully and rigorously audit and document all the financial records and business transactions of their clients.  The auditing process results in the accountant's "stamp of approval" on the client's business activities.  The auditors verify that all client accounting records that are publicly reported (to shareholders, potential investors, etc.) are accurate and that they abide by national accounting standards.  

Tax accountants provide similar services, but with a more specialized focus.  The task of tax professionals is to ensure that their clients' tax records are accurately documented, and that they follow guidelines established by local and national tax agencies.  Tax accountants also provide a consulting role by helping their clients minimize their tax liabilities.  

Private accounting refers to the internal accounting function of companies.  Private or corporate accountants perform the same types of tasks of public accountants, yet these tasks are specific to the companies for which they work.  Private accounting can be distinguished from public accounting in one important way.  Whereas public accounting is more involved in the collecting and external reporting of financial information, private accounting is more involved in the internal use of financial information to help managers within the company make more effective business decisions.  
  
Attractiveness of Accounting  

For the spring 1997 graduating class at the Haas School, 53 undergraduates entered accounting.  This figure represents over 25% of all graduating seniors.  To better understand these figures, you need to know that students choose to pursue careers in accounting for several reasons.  The accounting profession offers much more than just career stability.  

Students interested in public accounting usually enter one of the large national (and often international) public accounting firms, either in the audit or tax function.  These larger firms offer very solid training and seek to help new entrants pursue long-term careers within their firms.  They provide support to help their younger professionals prepare for the CPA (Certified Public Accountant) exam-an important credential to ensure career success.  With successful work performance, professionals can, over the long-term, move up within their firms all the way to the highest management level: partner.  

The same long-term career potential exists for students entering private accounting.  Professionals who excel within their companies can potentially reach senior executive level positions.  As they move up within their companies, private accounting professionals play increasingly important roles in the managerial decision-making process and can significantly contribute to their companies' financial performance.  

"Accounting offers students lots of career options," says Paige.  "One option is to remain with a large public accounting firm throughout your career.  In the long-term, as long as your performance is strong, you can eventually become a partner in the firm.  A second option is the opportunity to move into the private accounting profession, working within the accounting department of a major corporation.  Because you work so closely with your clients, you might possibly be recruited by one of them.  Yet another option could be to eventually start your own accounting business, after spending several years developing expertise in a larger firm."  

Changes in the Public Accounting Profession  

Over the years, accounting has seen some interesting changes.  Most notably, perhaps, is the consolidation taking place within public accounting.  Ten years ago, when discussing the large public accounting firms, they were referred to as the "Big Eight" firms.  As a result of mergers since then, today the major firms are referred to as the "Big Six."  Most recently, however, news stories in the business press have discussed even further possible consolidation within the profession.   

In the not-too-distant future, we might possibly be referring to the "Big Three" accounting firms.  The impact of these possible mergers would be significant.  They would greatly expand the capabilities and consumer bases of these already major players in public accounting.   

Preparing  for a Career in Accounting  

The best way  to explore career opportunities in accounting is to acquire relevant work experience before beginning your  job searches.  Many corporations, large and small, as well as all the large public accounting firms offer summer internships.  "These summer internships provide two purposes," according to Patricia Riegg, the undergraduate career advisor at the Haas School.   "Internships provide excellent opportunities for students to 'try out' a career before they begin looking for jobs as seniors.  In addition, employers use internships to evaluate potential employees.  Very often, if students perform well in their internships, they are  offered full-time positions upon graduation."  

For minority students interested in gaining accounting-related work experience, there are a number of programs available-two of which are particularly noteworthy. INROADS and Sponsors for Educational Opportunity (SEO) are two nation-wide career development programs, both working to prepare talented minority youth for careers in business. For more information on these programs, students can contact the national office at INROADS Inc, 10 South Broadway, Suite 700, St. Louis, MO, 63102, (314) 241-7488, and the national SEO office in New York at (212) 979-2040.   

The National Association of Black Accountants  

Students interested in exploring careers in accounting are encouraged to investigate NABA-the National Association of Black Accountants.  NABA is a national membership organization with the primary goal of developing, encouraging and supporting the participation of African Americans and other minorities in accounting.  NABA has a network of over 6,000 members across the country in approximately 49 professional and 90 college and university chapters.