Is an Accounting Degree Worth It?

The roots of accounting stretch back to the dawn of civilization, evolving from primitive methods of record-keeping to a sophisticated discipline integral to the functioning of modern society.

Historical records suggest that the art of writing itself may have originated from the need to document accounting information. This claim highlights the profound impact of accounting throughout history—from managing labor and material costs of monumental constructions like the Pyramids to meeting the intricate demands of merchants in 15th-century Venice (where modern bookkeeping practices were first developed).

Today, many recognize the importance of accounting, yet some continue to question whether an accounting degree is worth it. If you belong to this group, you came to the right place. This blog explores the value and benefits of an accounting degree, providing you with the insights needed to make an informed decision about your educational and professional future.

What is an Accounting Degree?

An accounting degree is a specialized program of study that prepares students to manage financial records, analyze financial data, and ensure compliance with relevant laws and regulations. It equips students with the necessary skills to track income, assets, expenses, and liabilities and to prepare clear and accurate financial reports that are essential for effective management and strategic planning in businesses. 

Students pursuing a degree in accounting will gain knowledge in a wide range of topics, including financial reporting, accounting principles, taxation, auditing, and managerial accounting. The curriculum provides a comprehensive understanding of the financial systems that support successful organizations, as well as the ethical considerations and professional standards that are required of accountants. Advanced courses might focus on specialized areas such as forensic accounting, international accounting, and corporate finance, which can lead to diverse careers in the financial sector.

Is an Accounting Degree Worth It?

Determining whether an accounting degree is worth it involves examining what it prepares you for, the skills it helps develop, the return on investment, and other relevant factors that come into play once you begin your professional career.

This approach will provide a clearer picture of an accounting degree's value, covering everything from career opportunities and salary potential to skill development and job stability. So, let's look into these aspects to understand how an accounting degree can be a worthwhile investment in your future.

1. Career Opportunities

Accounting graduates have access to a wide range of job roles, each with unique responsibilities and essential to the smooth financial operation of any organization. Some of the key roles include:

• Auditor: Responsible for reviewing financial statements and processes to ensure accuracy and regulatory compliance. They can work internally within organizations or externally for auditing firms.
• Financial Analyst: Analyzes financial data to help companies make informed business decisions. This role often involves forecasting future revenues and expenditures, as well as modeling financial scenarios.
• Tax Accountant: Specializes in preparing and filing tax returns for individuals and businesses. They also offer advice on tax strategies to minimize liabilities and ensure compliance with tax laws.
• Forensic Accountant: Uses accounting skills to investigate financial discrepancies and fraud. This role is crucial in legal cases and can involve working with law enforcement agencies.
• Management Accountant: Also known as cost, managerial, corporate, or private accountants, they record and analyze financial information for the organizations in which they are employed. They often advise company leaders on financial decisions and strategies.

While an accounting degree is not limited to these roles only, these roles highlight the versatility of an accounting degree, with opportunities spanning various sectors, including government, non-profits, private businesses, and multinational corporations.

2. Salary Potential

The substantial earning potential in accounting also makes it attractive for those considering their educational investment. According to the Bureau of Labor Statistics (BLS), the median annual wage for accountants and auditors is $79,880, potentially earning over $137,280 at the higher end of the spectrum. Considering the average cost for a four-year degree—including tuition, fees, room, and board—was approximately $30,031 in 2022, the return on investment (ROI) for an accounting degree is compelling. 

For students at the University of North Dakota (UND), the ROI is even more favorable as UND is recognized for providing one of the best values among U.S. colleges, with combined tuition, fees, and room/meal plans costing about $3,000 less per year than the national average for four-year doctoral universities.

Moreover, 74% of undergraduates at UND receive financial aid, with an average aid package of $13,500 annually. This financial support significantly reduces the initial investment required to obtain an education. Additionally, graduates from UND reportedly earn $11,000 more annually than the average earnings of graduates from other four-year institutions a decade after starting college.

3. Skill Development

Pursuing an accounting degree equips students with a versatile skill set that is highly valued across various industries. Here are some key skills developed through an accounting education:

• Ability to interpret and analyze data efficiently, helping organizations to make informed financial decisions.
• Precision in handling numbers is crucial in accounting to ensure accuracy in financial documentation and reporting.
• Problem-solving skills when facing complex financial issues that require innovative and practical solutions.
• Communication skills, which are essential for accountants to explain financial information clearly to stakeholders who may not have a financial background.
• Technological proficiency using advanced software for financial management and reporting, such as ERP systems and specialized accounting software.
• Ethical judgment when handling sensitive financial information.
• Leadership skills.

4. Networking Opportunities

Strong connections can open doors to internships, job offers, and invaluable career guidance, and accounting programs typically facilitate networking through various channels.

Firstly, students can network through interactions with professors who often have extensive industry connections. Moreover, peer networking, as well as participation in accounting associations, conferences, and seminars where students can connect with seasoned professionals, can be incredibly beneficial.

For instance, Zsófia Bárándi, as a UND alumna, attributes her successful placement at EY to the network she accessed through UND, saying that she "never would have gotten a job at EY if it wasn't for the connections alumni share with UND." 

5. Job Stability

Accounting is widely recognized for its stability and resilience as a profession. The BLS projects a 4% growth in employment for accountants and auditors from 2022 to 2032, indicative of steady demand. This growth is driven by the essential nature of accounting services in organizational management and compliance, which ensure job security even during economic downturns.

Additionally, the need to replace retiring workers or those transitioning to other careers contributes to the high demand for new accountants each year.

6. Industry Trends

The accounting industry is continually influenced by several evolving trends that require professionals to stay informed and adaptable. Some of the latest trends include:

• The adoption of robotic process automation (RPA) in routine accounting tasks;
• Increased use of big data analytics, which allows accountants to provide deeper insights into financial planning and risk management;
• Ongoing changes in tax laws and financial reporting standards.

Adapting to these trends is essential for accountants who wish to remain competitive in the field.

How Long Does it Take to Get an Accounting Degree?

The duration of an accounting degree typically varies depending on the educational path chosen. Most bachelor's degrees in accounting are designed to be completed in four years of full-time study. 

However, some universities offer accelerated programs that allow students to complete their degrees in less time, such as three years. Additionally, part-time options are available for those who need to balance work or personal commitments, which may extend the duration of the degree program. 

There are also combined bachelor's and master's programs that allow students to complete both degrees in five years, efficiently preparing them for professional certifications like the CPA exam.

Conclusion

At the end of the day, accounting is essential for the management and sustainability of both small enterprises and large corporations alike. Therefore, an accounting degree opens doors to a variety of career paths with strong earning potential, stability, growth, and the opportunity to make significant impacts within an organization.

For those intrigued by the dynamics of finance and the intricacies of economic systems, exploring UND's accounting degree program requirements can be the first step towards a successful and fulfilling career. UND provides excellent educational pathways, extensive support networks, and practical learning opportunities that pave the way for success.

Remember, beyond numbers, accounting is the language of business, and it could lead you to the heart of many decision-making processes. So, start your journey at UND and turn your analytical insight into a lucrative career.

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