final paper

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 17^th 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 19^th 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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