An economics degree can serve as a strong foundation for a career in accounting, but it is not a direct path. While your background in economic theory provides a valuable wide-lens view of financial markets, it must be supplemented with specialized accounting knowledge. The journey from an economics graduate to a qualified accountant involves targeted education and professional certification.
Bridging the Gap Between Economics and Accounting
An economics degree instills analytical and quantitative reasoning skills that are transferable to the accounting profession. You are trained to understand the broad forces that drive markets and business cycles, providing a “big picture” context for financial data. This perspective is useful in understanding why a company’s financial health is changing by connecting its performance to wider industry and economic trends.
The primary distinction lies in the scope and governing principles of each discipline. Economics is a social science focused on theoretical models and the study of resource allocation on a macro or micro scale. Accounting, conversely, is a technical, rules-based practice centered on recording, classifying, and reporting the financial transactions of a specific business entity. It operates under a framework, such as the Generally Accepted Accounting Principles (GAAP), ensuring that financial statements are consistent and comparable.
Fulfilling the Educational Requirements
To become an accountant, an economics graduate must acquire specific accounting coursework. State boards of accountancy, which regulate the profession, mandate a set of upper-level accounting classes to ensure all practitioners have the necessary technical knowledge. An economics degree alone, regardless of its quantitative rigor, will not satisfy these requirements.
Required subjects often include:
- Financial Accounting and Reporting, which covers the creation of financial statements.
- Managerial or Cost Accounting, focusing on internal reporting for business decision-making.
- Auditing, which deals with the examination of financial records.
- Taxation, covering both individual and corporate tax law.
- Accounting Information Systems, to address the technological aspects of the field.
A significant educational hurdle is the “150-hour rule,” a requirement in nearly all U.S. states for CPA licensure. This rule mandates 150 semester hours of college credit—30 more than a typical bachelor’s degree. An economics graduate can meet this by pursuing a Master of Accountancy (MAcc), an MBA with an accounting concentration, or by taking the necessary credits at a community college. It is important to consult the specific requirements of the state board where you plan to practice, as rules for credit hours and courses can vary.
Pursuing the CPA License
The Certified Public Accountant (CPA) license is the primary credential in the accounting world. It signifies a standard of competence and ethical standards, opening access to a wide range of career opportunities, including roles in public accounting, corporate finance, and government. Holding a CPA license is often a prerequisite for signing audit reports and is linked to higher earning potential.
The path to becoming a CPA is summarized by the “Three E’s”: Education, Exam, and Experience. The educational component involves meeting the 150-hour credit requirement and completing state-mandated accounting courses. The CPA Exam is a four-part test covering Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG).
The final component is experience, which involves working for one to two years under the supervision of a licensed CPA. This practical requirement ensures that candidates can apply their academic knowledge in a professional setting. The specific nature and duration of the required experience vary by state, with some jurisdictions requiring experience in public accounting while others accept work in industry or government.
Alternative Accounting Certifications and Roles
While the CPA is the most recognized accounting designation, it is not the only path for an economics graduate. Several other certifications offer specialized routes into the profession that may align well with an economics background. These alternatives can be an excellent fit for those interested in corporate finance or internal business operations rather than public accounting.
The Certified Management Accountant (CMA) credential focuses on corporate financial planning, analysis, control, and decision support. This certification is suited for individuals who want to work within a company, providing strategic insights to management. The CMA’s emphasis on financial strategy and management complements the analytical skills gained from an economics degree.
Another option is the Certified Internal Auditor (CIA), the primary certification for professionals in internal audit. CIAs assess and evaluate an organization’s internal controls, risk management processes, and governance. Roles in forensic accounting and financial analysis also represent areas where a blend of economic and accounting knowledge is valued and may not strictly require a CPA.
Actionable Steps for an Economics Graduate
Making the transition from economics to accounting requires an organized approach. The first step is to obtain an official copy of your undergraduate transcript and have it evaluated against the specific requirements of your state’s board of accountancy. This analysis will reveal which accounting and business courses you are missing.
With a clear understanding of your academic gaps, research and enroll in the necessary coursework through a master’s degree, post-baccalaureate program, or community college. Concurrently, decide which professional certification—CPA, CMA, or another—best aligns with your career goals. Then you can begin mapping out a study plan for the corresponding exam.
As you build your accounting knowledge, update your resume to feature your quantitative and analytical skills from your economics degree alongside your new accounting qualifications. Emphasize your ability to understand both high-level economic trends and detailed financial data. Finally, begin networking with accounting professionals by joining industry associations or attending local chapter meetings to build connections.