Firms Seeking Master?s Degree Job Candidates

This spring, the accounting department at the University of Arkansas had 76 students finish with undergraduate degrees and 17 with master’s degrees.

Though the numbers were lower than department chair Vern Richardson would like, he’s confident more students will enroll in the next several years, helping to fill the booming demand for bean counters.

“There is a tremendous demand for accounting graduates, with Sarbanes Oxley and conversions to international standards,” Richardson said.

The UA accounting department has a job placement rate of 90 percent to 95 percent, Richardson said.

Typically, the program at the UA turns out about 100 undergrads each year and 20-25 master’s graduates. The advantage of obtaining a master’s degree in accounting is that students can begin training for the CPA license at the same time as they begin the one-year master’s coursework, Richardson said.

Next year, there will be about 30 master’s students, he said.

Many of the employers that will hire those students are seeking candidates with advanced accounting education, especially a master’s degree combined with a CPA license.

One reason why fewer accounting students opt for a master’s degree is that the initial pay difference isn’t that significant. A graduate with a bachelor’s degree could expect to make about $46,000 a year, while a graduate with a master’s could make $50,000, Richardson said.

 But students who begin looking for work with only a bachelor’s degree will likely find it tough to take the CPA courses while also searching for a job, he said.

Keith Ekenseair, managing partner at Moore Stephens Frost in Rogers, said most of the recent graduates his firm hires are within striking distance of earning their CPAs.

Occasionally, the firm will hire an accountant who needs to finish three to six hours of coursework to be eligible for the CPA exam. Those people can typically finish up their last few hours of coursework through night classes and quickly become eligible for the exam.

But anyone missing more than six hours of coursework probably won’t be considered for a job with Moore Stephens Frost, Ekenseair said.

“Someone going through the master’s program will come out with enough hours to sit for the exam,” he said. “That is our preferred candidate.”

To demonstrate the importance of master’s degrees and CPA licenses, several big corporations and accounting firms – both regional and national – recently signed an open letter to UA accounting students.

Wal-Mart Stores Inc., Dillard’s Inc., Tyson Foods Inc., Ernst & Young, S.F. Fiser & Co., Deloitte and PricewaterhouseCoopers, among several others, urged students to pursue postgraduate degrees and professional certifications.

“Many students underestimate the challenge of meeting CPA exam eligibility requirements without a graduate degree. In addition, a graduate degree increases your ability to compete for future career opportunities,” the letter stated.

As more and more accounting professors reach retirement, demand for accounting Ph.D.s is also expected to increase, Richardson said, adding that starting salaries for accounting professors have gone up dramatically – from about $145,000 to as much as $170,000.

The four-year Ph.D. program at the UA will have about 10 students soon, he said.