Hi guys, I've just finished a master of finance degree, I got offers to work at a small PE shop and a BB IB. I'm thinking in working 3-4 years and work towards getting an MBA and the CFA. I was wondering how many of you have manage to do all of this and how much time you allocated to each one.
Thanks for your time, I appreciate your comments.
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CFA is useless in IB. It won't get you anywhere. GMAT is good for 5 years so if you have time right now prepare it for 3 months and get a good score before the summer (assuming your FT starts in June/July). Otherwise wait till the year before you are applying for an MBA. GMAT doesn't and shouldn't take years to prepare.
Yup, CFA is pointless for IB.
IB and the GMAT (Originally Posted: 02/11/2011)
I'm a Senior and I have accepted a offer to work at a BB in Lev Fin.
Just curious how do people study for the GMAT and prep for B-school while working such crazy hours ???
All experiences welcomed
I recommend you study for the GMAT now and try to knock it out before you start FT. I believe the scores last for several years, and your brain is (hopefully) in a more "academic" state now than it will be in the working world. You likely won't have the time, energy, or patience to take studying for the GMAT seriously later on, so do it now while your life is relatively low stress.
The scores are good for 5 years. Also, it is generally recommended to take the test ASAP after graduation (or even in your senior year) because you are in a test-taking mode. When cut by years out of school, test takers score best on the GMAT in years -1 and 0. Sure you could argue causation vs correlation, but its still a fact. Take the test ASAP.
Yeah I am in my first year as an analyst and definitely wish I took the test during my senior year when I had the time. All I wanna do on my free time now is sleep, play black ops, and slam clunge.
I took the GMAT right after graduating. Seeing analysts now trying to study on their Saturdays makes me glad I did it.
"All I wanna do on my free time now is sleep, play black ops, and slam clunge."
Quoted for truth. +1
ahhh...I thought everyone would say this...what happened to enjoy senior year of college ? lol
p.s.
Enjoy your senior year of college.
The GMAT, if you scored well on SAT, should take max 1 month of study. It's not a hard test to break 700 on. If you have some sort of natural testing ability, getting 750 with a couple of weeks review isnt hard. Getting 750+ is the hard territory. but honestly, it doesn't matter enough for B-school to warrant that kind of stress
Studying for the GMAT or CPA for an Incoming IBD Analyst (Originally Posted: 01/08/2015)
I have one more semester left before I start as an Analyst at a middle market investment bank. During this semester, I want to do one of two things- either study like crazy for the CPA and pass it within two months (my requirements to sit are met), or study for the GMAT in hopes of going to grad school within four years.
I understand a CPA does not add much value in the analyst role, but do you think it sets candidates apart during interviews for exit opps? Or even 20 years down the line? Since I have all the requirements to sit now, I feel it would be a shame to let it go to waste (e.g. 154 credits tailored in accounting).
The other option is fairly straightforward and common- buy the Manhattan Prep and study for the GMAT.
If your goal is to maximize your chances of getting an analyst spot, passing the CPA will cause an interviewer to think "Oh, interesting - this will help you eventually and you passed it early - you must be willing to work hard and grind stuff out when needed - won't help much here though...next thought... still neutral on you".
A 700+ gmat score will cause them to think"Nice- this kid is sharp. He'll do great here and go on to have a great future and make our bank proud...next thought...positive impression"
Stick with the GMAT.
Hopefully you've already done some research on the CPA designation, but if not you should note that just passing the CPA exam does not mean you're automatically a CPA. There's an experience requirement to meet as well (for example in New York it's one year under the supervision of another CPA). If you're working as an IB analyst, I doubt anyone above you is going to be a CPA, which means you'll never meet the experience requirement to get licensed. I suppose if you get burned out and want to switch to an accounting-based role down the road having passed it might be beneficial, but outside of that scenario putting "passed the CPA exam" on a finance resume is going to mean squat to interviewers.
Very interesting. I would agree with crackjack, its all about the GMAT, especially since you are pretty far away from any accounting experience.
CPA definitely adds value but GMAT is the better choice in your situation. Last semester grades will also matter for your eventual mba application so don't let that slide.
GMAT>>>CPA
You'll be ready if you decide to apply to BSchool.
I'd take the CPA. My gmat preparation was doing 2 or 3 practice exams piecemeal in the evenings over the week before my test, as I was working full time front office at the time.
Got it. I think I'm going to stick with the GMAT and work on breaking that 700 mark. Manhattan prep here I come
I pretty much disagree with everyone here. The CPA is actually useful and adds much better credentials. You might not need the CPA now, but if you ever plan to move towards a more executive position in the future, then you're going to need your CPA. For example, most finance jobs outside of IB will place massive importance on CPA - and you're never going to meet a high level corp finance executive like a CFO who isn't a CPA
That's just my opinion. A CPA actually adds credentials at the end of your name. I'm not really sure why you'd have to study so hard for the GMATs if your undergrad is in a business related field - it's pretty easy IMO.
I'm sorry but your statement is utter BS. Upper-level executive positions in finance roles do not require someone to be a CPA, and there are tons of people that are CFOs that are not, nor have they ever been, CPAs. The CPA is only really required for a job where someone provides attest-type services to a public client. That's why it's called it the Certified PUBLIC Accountant designation.
Yes, there are obviously some CFOs that do not have accounting backgrounds, but trust me, the overwhelming majority do - it's not even a question. I'm sorry if you think my advice is BS, but I can't say with a straight face that someone's time is better spent studying for the GMAT; which let's face it, if you have your undergrad in business, then you shouldn't need to put too much time into studying for it, rather than study for the CPA.
Look, I understand that all the kids on this forum think that everything in finance starts and ends with IB; but it doesn't. A lot of you will go on to other fields in finance, or even better yet go the route of entrepreneurship (like I did); and trust me, strong skills in accounting will be more beneficial. And this is coming from a guy who majored in finance like most other people on this board.
Well that completely contradicts your statement two posts above that all CFOs have their CPA.
Why are we even discussing CFO positions? This has absolutely no relevance to someone working in IB. Yes, most CFOs are CPAs. Cool story.
Now look at actual relevant future career positions for someone working in IB (MD at an investment bank, Principal/MD at a private equity firm or hedge fund, etc.), and you will see that CPAs are relatively non-existant (except for the few that started off in TAS or other accounting role for a couple years before switching to banking). And that's because the designation is irrelevant for these roles and adds no value.
OP - I think it goes without being said to take advice on this site with a grain of salt because there's quite the surplus of misguided contributors who comment on industries and careers that they have never even worked in. Echoing the above recommendations, studying for the GMAT would be a smart choice considering you won't have as much free time to study for the exam in the future when you're working full-time.
It doesn't contradict it at all...not sure what you're talking about. Its accurate. The OP should do whatever he likes. If he ever plans on leaving IB for another job in finance he can always take the CPA then anyway, so it's not a big deal. I personally don't think taking a GMAT is as impressive on a resume (not even sure why you would put that on a job resume) as CPA. Studying for GMAT is cake, like someone already said, you can just take a few practice exams.
Do whatever you are more comfortable with. But as a hiring manager, I feel more confident in someone reading and analyzing financial statements who has passed the CPA rather than someone who got a decent grade on their GMAT.
GMAT isn't about putting a score on a resume....it's about getting it out of the way and not having to worry about doing it when working later on.
I agree. If the OP is certain that his goal is to enroll into an MBA program in 4 years, then yes, it can be a better option, but that's not what he said. He said:
"I understand a CPA does not add much value in the analyst role, but do you think it sets candidates apart during interviews for exit opps? Or even 20 years down the line? "
My answer to that question is simple; yes.
This is about the only upside I see in doing GMAT early. The only exception would be if you're not that bright and need to study hard to get >700. In that case, you should do it.
As an interviewer, I'd be more impressed by CPA.
I'd give zero credit for high GMAT on a resume. If you score high, then that intelligence should already be reflected in your GPA, interview quality, probably your work experience.
If your GPA is not fantastic and you've had to spend a lot of time studying to get a high GMAT, then that's telling me that you're hard working but not that bright.
In terms of accumulating certifications - even if you don't need them - I think getting the CPA done has more value than GMAT. I've accumulated unnecessary qualifications in my time (eg CFA) and, even if not strictly necessary for your role, it's nice to have them.
Importantly, having the certification can give you unexpected options many years hence.
I'll just leave this here.
Your rationale is very peculiar to say the least.
I could even note that above all of them I would start working on CFA (personal choice of course) if you really want to pursue an analyst position. Being CFA can get you very far, and I have passed up several MBAs for CFAs. Once again, before every child on this forum jumps on me, this is my opinion based on 20 years of experience.
Hi, i have just got married and moved from India to the States. I am a qualified CA in India with over 2.5 years of work experience in core finance with Bank of America Mumbai, Now that am here i wanted to know is doing CPA going to help me in the banking industry because i would like to continue with banking. or should i start work with BofA ( hoping to get in) and then figure out what should i do for my future education.?
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