Accounting or Taxation?

Subscribe

Hi y'all,

I was wondering whether Accounting or Taxation is a better major for IB?

There are a lot of similarities between the two but I certainly like Taxation better since it is less repetitive and the real world value of it outside of IB is much bigger.

Any thoughts?

Comments (8)

 
Mar 15, 2016 - 3:25pm

Sil:

Accounting. I was an accounting major and feel like it has given me a leg up on the job. As an analyst, you will never deal with taxation issues; that's what you have outside firms to help clients for.

I already assumed accounting was better for IB but eanted to make sure.

How do bankers perceive these majors though?

Do they consider Taxation an easy/weak major and Accounting a difficult one?

 
Mar 15, 2016 - 4:17pm

If you want IB, there is absolutely no logical reason to major in taxation. 1). You don't need a taxation major to prepare your own 1040 and 2). no company would ever ask an IB analyst for M&A tax advice. You run the risk of bankers wondering why you are applying to IB.

I would pick accounting. Try to double major in finance if that's possible.

 
Mar 15, 2016 - 7:03pm

Sil:

If you want IB, there is absolutely no logical reason to major in taxation. 1). You don't need a taxation major to prepare your own 1040 and 2). no company would ever ask an IB analyst for M&A tax advice. You run the risk of bankers wondering why you are applying to IB.

I would pick accounting. Try to double major in finance if that's possible.

I want to have a decent plan b and while I don't see myself doing Public Accounting, Tax is actually a good option considering that I live in the Netherlands which is a big player in tax evasion.

I want to double major in English and Taxation but can I tackle the 'Why banking?' question by saying that when I majored in Taxation I took a few Economics classes which triggered my interest in banking or something like that?

 
Mar 15, 2016 - 7:30pm

Tax as a back up is actually a good idea. Tax accountants with Big 4 exposure (that I know) make money hands over fist. If you can save a guy worth $5MM over $150K due to tax loopholes you're deserving of a nice cut.

I'd just do accounting, and if you have to choose electives get a minor in Tax, but don't put it on your actual resume IMHO.

"It is better to have a friendship based on business, than a business based on friendship." - Rockefeller. "Live fast, die hard. Leave a good looking body." - Navy SEAL
 
Mar 15, 2016 - 7:55pm

UTDFinanceGuy:

Tax as a back up is actually a good idea. Tax accountants with Big 4 exposure (that I know) make money hands over fist. If you can save a guy worth $5MM over $150K due to tax loopholes you're deserving of a nice cut.

I'd just do accounting, and if you have to choose electives get a minor in Tax, but don't put it on your actual resume IMHO.

What about the other way around, majoring in Taxation and minoring in Accounting?

I'm curious btw why you think that you shouldn't put the Tax electives on your resume?

 
Mar 15, 2016 - 8:00pm

Only if your goal is IB. It won't matter. It's wasted space in a way.

I wouldn't just because in IB, Taxation isn't important. The worst part is its not even similar to English with a minor in accounting because they'll see you as someone who didn't 'want' Ib.

"It is better to have a friendship based on business, than a business based on friendship." - Rockefeller. "Live fast, die hard. Leave a good looking body." - Navy SEAL
Start Discussion

Total Avg Compensation

September 2020 Investment Banking

  • Director/MD (17) $704
  • Vice President (45) $323
  • Associates (257) $228
  • 3rd+ Year Analyst (37) $203
  • 2nd Year Analyst (142) $153
  • Intern/Summer Associate (134) $141
  • 1st Year Analyst (565) $129
  • Intern/Summer Analyst (546) $82

Leaderboard See all

1
Jamoldo's picture
Jamoldo
98.3
2
LonLonMilk's picture
LonLonMilk
98.3
3
Secyh62's picture
Secyh62
98.2
4
CompBanker's picture
CompBanker
97.8
5
Addinator's picture
Addinator
97.6
6
Edifice's picture
Edifice
97.6
7
redever's picture
redever
97.6
8
frgna's picture
frgna
97.5
9
NuckFuts's picture
NuckFuts
97.5
10
bolo up's picture
bolo up
97.4