Should
One Pursue a Career in Accounting or Become an Actuary?
Have you ever thought about earning
over $60,000 a year? According to the ACTEX Publications 2008, actuary ranks in
second place of the “Ten Best Jobs” and accountant ranks in fifth place. In
arguing for pursuing a career in becoming an actuary, it must be conceded that
one must work for more than 40 hours a week, passes series exams which take
more than 5 years, and needs to work indoors for most of the time. When arguing
in favor of becoming an actuary, one should consider a good job outlook and
security among other occupations, exams and licenses, extent and costs of
required education in college, job hours, job environment and contribution one
can make to people.
A first concession to the
perspective of being an accountant would be that if a student wants to take a CPA test after
graduating from SCSU, he or she needs to complete 150 credits which will take
one almost five years to accomplish. But considering other majors, they will
only take four years to complete. Besides the extent required in college, one
needs to get grades above C on most of courses. Plus it is also requested to
achieve grades above B on major courses, so that one is qualified to have the chance
to take the upper level courses. O’NET posted that job opportunities will be
“best for jobseekers who have a master’s degree, obtain certification or
licensure or who are proficient in the use of accounting and auditing computer
software” (2008, p.6).
A
second concession is that if international students want to be professional
accountants, they need strong English language skills, and also “knowledge of
the structure and content of the English language including the meaning and
spelling of words, rules of compositions, and grammar” (O’NET, 2008, p. 3). Compared
to American students, English skills may be most international students’
weaknesses.
A
third concession concerns that an accountant has to master the knowledge of computers.
For example, one needs to know certain parts of “circuit boards, processors,
chips, electronic equipment, and computer hardware and software, including
applications and programming” (O’NET, 2008, p.3). But if one is not a person
who has a strong interest in computer and electronic equipment, it will take
him or her more time and energy to learn and practice.
Another
concession is the gender issue in accounting. Most employers prefer male
accountants to work for them. McMaster is the only female who works as a CEO
just as Milwaukee (2008) noticed
that “McMaster becomes the fourth CEO in Clifton Gunderson’s nearly 50
years history. She also becomes the first and the only female to serve as CEO
among the nation’s top 25 certified public accounting firms in the history of
the profession”(para. 3). It is rare to see women have high positions or take
in charge in company, and Batog (2006) published an article on The New York
Times clarified the percentage of women acctountants:
A
recently study by the American Institute of Certified Public Accountants, based
on New York City, found that as of 2004, 56 percent of new hires and 42 percent
of full-time accountants are women, up from 36 percent in 1993. But, even if women
have made up more than half of accounting school graduates since 1986; they
represent just 19 percent at accounting firms. 11 to 31 percent of senior
leadership positions are held by women at firms (para. 5).
A final concession regards people’s
MBTI (Myers-Briggs Type Indicator) assessment.
This writer’s preference is ENFJ (Extraversion,
iNtuition, Feeling, Judging). ENFJs
have excellent communication skills and an ability to build consensus and they
are genuinely concerned for people. They have varied interests and like quick
study. ENFJs need opportunities to lead people, especially through face-to-face
interaction. They are frustrated by
cold, impersonal logic; overly task oriented jobs. But as an accountant, they
might have to work on weekends from November to April for over 40 hours a week.
An accountant needs to work in an office every working day for 40 hours a week
and do the individual work most of the time, which most ENFJs would dislike to
do, because they want to work with people.
The
U.S. Department of Labor (2008) indicated that an actuary especially a
consulting actuary has to work more than 40 hours a week. But in fact
consulting actuaries have to work more because they need time to travel around
the world, meeting with clients. However, one who does enjoy traveling and
interacting with people will no doubt put his or her heart into this work; even
if it is over 40 hours a week. One feels
comfortable when one is working directly with people and makes a positive
impact on people’s lives. Most actuaries have a “desk job”, and they have a
clean and comfortable working setting (p. 2).
The
U.S. Department of Labor (2008) states that to be a certified actuary one needs
to “pass a series of exams.” There are two professional tests. One is called “the
Society of Actuaries” (SOA), and the other one is “the Casualty Actuarial
Society” (CAS). In order to reach the first level of certification, a candidate
must pass seven exams, take one course and accomplish coursework in “applied
statistics, corporate finance, and economics” which are required by the SOA and
CAS. Usually it will take 4 to 6 years to get the certification. When you pass
the first level, there is an advanced level, demanding two more exams “in
advanced topics”, including
“investment and assets and dynamic financial analysis and the valuation of
insurances”. It takes another 2 to 3 years to complete. So if a candidate wants
to get the advanced level, she or he has to spend 6 to 9 years (p. 3). This
writer is most strongly opposed to this requirement because it is a daunting challenge.
However, the truth is many candidates can take one or more tests when they are
still in college. Furthermore, most candidates are able to find work as soon as
they graduate. In fact, most of the employers will pay for the exam fees for
their workers, and leave time for them to take these exams. When actuaries pass
the exams, they usually will get rewarded by a salary increase.
As
referring before, in considering people who are international students, they
may not excel in composition skills as American students do. However, if they
are good at “active listening and speaking [the necessary skills for an
actuary]” (O’NET, 2008, p. 4), which will be an important advantage. Active listening needs “giving full attention
to what other people are saying, taking time to understand the points being
made, asking questions as appropriate, and not interrupting at inappropriate times”
(O’NET, 2008, p. 3) and one would like to interact with people and talk to
them. Speaking asks for “talking to
others to convey information effectively” (O’NET, 2008, p. 4).
The
first argument is that one should pursue a career in actuarial Science rather
than accounting, the U.S. Department of Labor (2008) listed that employment of
actuaries is expected to grow by 26 percent through 2006 to 2016, which is “faster
than the average for all other occupations” (p. 3).
Secondly, many people think that actuaries
just sit in the office and calculate all day. However, in fact, for an actuary,
Allen had a different opinion saying that “‘they [actuaries] don’t just sit in
the corner calculating figures’, but actuaries are increasingly developing
business and communication skills in order to translate their number-crunching
into language others can understand” (Allen, 2004, para. 5).
Third, one argues that a person
who would like to interact with people, he or she will like being actuarial
consultants as their future job. An actuarial consultant helps companies
calculate the cost of a variety of business risks. They get involved into the
upper management. “Consulting actuaries rub elbows with chief financial
officers, operating and human resource executives, and often chief executive
officers” (ACTEX Publications, 2008, para. 3).
What attracted people the most to
be an actuary is its interesting history:
The
term actuary was used for the first time in 1762 in the carter for the Equitable
Society of London, which was the first life insurance company to use scientific
data in figuring premiums. The basis of actuarial work was laid in the early 17th
century when Frenchmen Blaise Pascal (1623-62) and Pierre de Fermat (1601-65)
derived an important method of calculating actuarial probabilities, resulting
in what is now termed the science of probability. . . .As more complex forms of
insurance were developed in the 19th century, the need for actuaries
grew (Morkes, 2003, p.16).
Another main argument for being
an actuary is actuaries are asked for high knowledge of statistical,
mathematical, and financial calculations. Nowadays, they are referred to as
“financial architects” and “social mathematicians”. The reason is that “they
use their unique combination of numerical, analytical, and business skills to
solve a variety of social and financial problems” (Morkes, 2003, p.16). At the
same time, Bluhm pointed out the importance to be an actuary, which is“actuaries
are even better equipped to identify and avert the kind of risks now crippling
our economy” (para. 4, 2008). Managing and predicting risk becomes the
“keystone” (Bluhm, para, 4, 2008) in actuaries’ field.
Another reason for being an actuary
is that after one completes a series of 10 exams, he or she can become
associate member of the Society of Actuaries
“for the life and health insurance, finance, and pension fields” (Morkes,
2003, p.18). Society of Actuaries offers free educational publications for the
actuaries who need to get trained on how to interact with people in an
effective way.
Most importantly, Actuaries who
have business knowledge can have a high position in the company, for example
“Chief Risk Officer, Chief Financial Officer, or other executive level
positions” (O’NET, p. 2). O’NET showed that “some experienced actuaries move
into consulting, often by opening their own consulting firm. Some actuaries
transfer to college and university faculty positions” (2008, p. 2). What one
can benefits from being an actuary is that “actuaries with supervisor ability
may advance to management positions in other areas, such as underwriting,
accounting, data processing, marketing, and advertising” (O’NET, p. 2), which
means one can have more chances to get a higher and better job.
The ultimate argument in favor of being an
actuary, especially a consulting actuary can help people and make contributions
to the society. People can feel a manifestation of self-worth through it. As an
actuary, one can enjoy interacting and helping people to calculate the future
risk, get the opportunity to use math to solve the business problems, and gain
chance to travel around the world and meet with the clients.
In summary, one should pursue
a career in actuarial science rather than accounting if one is interested in
both mathematics and business. Because compared to accountants, actuaries can
get more chances to interact people, especially the consulting actuaries, which
fits for ENFJs They have chances to travel around world. Actuaries can use math
skills to solve business problems because they build up math systems and put
them into business issues. Actuaries have better job outlooks than accountants,
which is still growing these years. Actuaries can make big contributions to
people, to the economy, and also to society as a whole. Actuaries can help
people evaluate future events, predict future risks, and reduce the undesirable
events. What they do is related to people’s daily life, namely, housing, car
insurance, job outlook, financial risk, stocks, investment in banks or
companies. For all the reasons listed, pursuing a career in actuarial science
is a good choice for one and one can achieve through doing this job and
accomplish one’s dream.
Reference
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