Want To Become A Business Leader? Learn Accounting - Poets&Quants

Want To Become A Business Leader? Learn Accounting

If you’re looking to become a business leader, you may want to enroll in an accounting program.

In a new US News report, experts say knowing how to analyze and communicate financial information can be a valuable asset for aspiring business leaders.

“Accounting touches all business disciplines and accounting knowledge is important for business planning and decision making,” Michael Clement, an accounting professor with the McCombs School of Business at the University of Texas—Austin, tells US News.

The Important Of Accounting

Accounting skills, experts say, are transferrable to all fields of business.

“It is often referred to as the language of business,” Clement tells US News. “Indeed, you will often hear senior executives speaking the language of accounting when they talk about revenues, expenses, profits, profit margins and the strength of their balance sheets. Employers frequently tell our students to take as much accounting as possible.”

Stephen A. Karolyi, assistant professor of finance and accounting at Carnegie Mellon University’s Tepper School of Business, agrees.

“High-quality accounting MBA programs intend to produce alumni that not only have accounting expertise, but also an appreciation for the connections between accounting principles and the broader corporate information environment,” Karolyi tells US News. “Alumni with these qualities can excel in fields beyond public accounting, because they understand the crucial role for accounting in decision-making, both at the internal corporate level and external investment level.”

Variety In Accounting Course Offerings

Not all accounting programs are created equal.

Strong accounting programs, according to experts, generally offer a variety of courses.

In my opinion, courses that delve into the strategic aspects of accounting are the most valuable,” Karolyi tells US News. “I am always impressed when students are able to articulate how accounting choices affect information production, and how this information could affect interactions not only with investors, but also across divisions within the firm or with competitors, customers, suppliers, divisions, and regulators.”

In addition to a variety in course offerings, applicants should seek out a curriculum that teaches technological training.

Alex Dontoh, an accounting professor and director of the Master of Science in Accounting program at New York University’s Stern School of Business, tells US News that data tools like Python, XBRL and SQL are vital to a strong accounting program.

Programs With Leading Accounting Professors

Like any program, an accounting program’s strength lies in its faculty experience.

Experts suggest applicants research professors at a select school to see how deep their accounting knowledge is.

“The proportion of accounting faculty at a business school should inform students about the relative demand for accounting courses taught at the school,” Karolyi tells US News. “Without a deep knowledge of accounting, it is difficult to truly understand the reported performance or state of a company.”

At the University of Texas at Austin’s McCombs School of Business, the school’s knowledgeable faculty is a main reason why its accounting program is rated number one, as P&Q has previously reported.

“We have a deep bench of accounting faculty that services all of the programs, says Steve Limberg, who oversees the MPA program at the McCombs School of Business. “That gives us a greater degree of freedom and ability to accommodate individuals in the accounting program.”

Sources: US News, Poets & Quants

The Need For Humanities In Business

Humanities majors have what it takes to succeed in the business world.

At least, that’s what INSEAD’s Sami Mahroum and Rashid Ansari believe.

In a new article for The Conversation, INSEAD’s Sami Mahroum and Rashid Ansari argue that humanities departments at universities need to work closely with b-schools to prepare humanities majors for the corporate world.

Not doing so, they argue, would leave a vast pool of leadership untapped.

Humanities Majors Offer New Perspectives

A number of experts argue that humanities majors can offer new perspectives, especially in the business classroom.

In an interview with Quartz, former Harvard director of admissions Dee Leopold argues that humanities majors have a main benefit to the b-school classroom—they’re comfortable with problems that don’t have just one correct answer

“They’re used to managing ambiguity,” Leopold tells Quartz. “They have an ability to think broadly, an ability to take a stand, and yet know there are other approaches.”

In an environment that’s saturated with finance or engineering students, Harvard Business School could benefit from new perspective, Leopold argues.

Yet, Leopold also understands that there is work that needs to be done to properly train humanities majors to transition into a b-school environment.

“You can’t come and be quant-phobic, or think someone else will do the math for you,” she tells Quartz. “But you don’t need business experience. Neophytes who need a primer in the language of finance can get up to speed on Harvard’s online platform, HBX, before their first class. This year, 140 took the online course.”

Universities Should Promote Humanities Leadership In Business World

Mahroum and Ansari say there are two steps that universities can take to promote humanities leadership in the business world.

For one, it starts with making training in humanities and liberal arts more relevant to business needs.

“We believe that integrating humanities and business at the university level would help develop a more agile and versatile workforce whose members can adapt much quicker to the marketplace’s changing needs,” they write.

Additionally, universities need to incorporate humanities and liberal arts training into STEM.

“For example, by introducing mandatory modules that would include learning about major works and key ideas in anthropology, philosophy and psychology,” they write.

Mahroum and Ansari argue that humanities students have what it takes to meet the modern demand of big data and analytics in the business world.

“Responding to the nuances of individual and community behaviors will offer a competitive advantage,” they argue. “We think that humanities graduates would be more adept at detecting, analyzing and understanding such nuances.”

Sources: The Conversation , Quartz

How To Get An MBA-Level Education—For Free

Getting an MBA is more expensive than ever.

But that’s not to say that you can’t learn MBA fundamentals for free.

In a new article featured on Forbes, Joe Fairless — host of the world’s longest running daily real estate podcast: Invest With Joe — discusses how people can get an MBA-level education for free and even possibly get paid while doing it.

MBAs Are More Expensive Than Ever

A recent Investopedia article finds that higher education costs in the U.S. have outgrown the rate of inflation. That’s especially relevant for MBAs who go to private schools, where average debt and expenses can cost between $100,000 – $200,000 in just over a two-year period.

According to a ThoughtCo article, the average annual MBA tuition costs more than $60,000, while a top b-school’s tuition can be more than $100,000.

Last year, we reported that nine b-schools broke the $200K total cost barrier.

The Thought Leadership Platform

The truth of the matter is the MBA isn’t getting any cheaper. And that’s exactly why Fairless advises aspiring MBAs to learn as much as they can outside the classroom.

He calls it learning through a thought leadership platform.

“A thought leadership platform is an online networking tool where you produce valuable content about a specific business niche and share it with the world,” Fairless explains. “Typically, an entrepreneur creates a thought leadership platform in order to build a reputable brand and/or promote their business.”

But for aspiring MBAs, the thought leadership platform can be applied to gaining an MBA-level education.

“The same thought leadership platform can be used to curate a customized educational program while also allowing you to network with business professionals who are currently working in the industry you want to enter,” he writes. “All of this can occur without having to go into debt — or even while collecting a paycheck.”

Fairless says there are a number of platforms out there for aspiring MBAs to utilize from podcasts to YouTube channels and blogs.

“Regardless of which option you pursue, I would recommend having the platform be interview-based,” he writes. “That means you conduct interviews with business professionals who are currently working in your desired industry.”

Benefits Of Thought Leadership Platform

So, what benefits does a thought leadership platform have over a traditional MBA education? Quite a few, Fairless argues.

For one, a thought leadership platform allows students to build relationships with active professionals in the industry.

“For example, instead of going to business school for two years and sitting in a classroom, you could conduct one interview a week for two years with people who are active and already successful in the real world,” he writes. “That’s over 100 conversations or ‘lessons.’ Or you can do what I do, which is to conduct daily interviews. That’s over 700 ‘lessons’ in two years as well as over 700 networking opportunities to find a potential employer or business partner.”

The second benefit is obvious. All of these interviews can be done without spending a dime. In fact, Fairless argues, you might even make some money.

“If you decide to create a podcast, you only need a laptop and a microphone to get started — or for the most economical approach, all you need is a smartphone,” he writes. “Additionally, once you’ve built a large enough following, it provides you with the opportunity to make money through paid sponsorships.”

Having a thought leadership platform can help to position you as an expert in the industry—an extremely useful asset when you seek out business opportunities.

“You can become known as the go-to resource for the best information and strategies for a specific industry,” he writes. “As your audience and reputation grow, you’ll attract better, more successful guests, which in turn can increase your audience, reputation and quality of business opportunities.”

For Fairless, who doesn’t have an MBA, the thought leadership platform avenue has paid off quite well.

“As a direct result of the education I’ve received and relationships I’ve formed, I’ve gone from making $30,000 a year at a New York advertising company to controlling $300 million in apartment communities, as well as earning revenue from podcast sponsorships,” he writes. “That’s the power of a thought leadership platform.”

Learn more about Joe Fairless from his podcast, Invest With Joe.

Sources: Forbes, Invest With Joe, ThoughtCo, Investopedia, Poets & Quants

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