For Accounting Basics, Students Head to MIT

When the business adviser at the Office of Career Services (OCS) counsels Harvard's future business leaders, he often tells them to go to MIT.

That's because MIT--unlike Harvard--offers a class in general accounting, a credential some students say their future employers want them to have.

"It's the most practical course that they will take here, in that those skills are going to be useful for a lifetime," says Marc Cosentino, the business adviser at OCS. "And a lot of companies look for it."

Between 10 and 20 Harvard students, mostly seniors, make the trek along the Charles each semester to enroll in "Introduction to Financial Accounting," a course taught at MIT's Sloan School of Business Management.

"Accounting is going to be very useful both in recruiting this year, and on the job next year," says Eric S. Witt '95, an economics concentrator enrolled in the course.

"Accounting is the most business-specific course for undergraduates to take," adds David A. Pentlow '95, who has also enrolled. "It starts you off with practical knowledge right away, and it's a good way to find out if you're interested in the nuts and bolts of business."

While MIT has not yet compiled official numbers on enrollment, Harvard students appear to comprise almost one-third of the 50-person course.

The course's popularity with Harvard students leads many of them to wonder why the College does not offer something similar.

"It's clear to me that there is enough demand at Harvard among students. A lot of people would be interested in taking accounting," says James W. Fields '95.

"It's ridiculous for Harvard students to have to go to MIT," Pentlow says. "It would be a valuable service for the University to offer an accounting course to its undergraduates rather than force them to cross-register."

Harvard's economics department has offered a general accounting course before, most recently five years ago.

"It has been offered off-and-on over the years," says Gund Professor of Economics and Business Administration Richard E. Caves. "We found somebody to teach it and then that somebody went away."

Harvard also offers a similar course at the Kennedy School of Government and at the Business School, but Cosentino says it is not always easy to get into the course at the Kennedy School. Undergraduates cannot cross-register at the Business School.

Professors say the College does not regularly give the course because it is hard to find qualified instructors.

"There's no one on the faculty who does accounting as their field of study," says assistant professor Andrew P. Metrick, the head tutor in economics.

But the lack of teachers points to a larger issue. Many economics professors say that vocational courses like accounting do not fall into the discipline of economics.

"It goes hand in hand with an intellectual decision that the faculty made to not have an undergraduate business major," Metrick says. "While accounting is a perfectly legitimate field of study, it's not necessarily economics."

"Our department is oriented toward an arts and sciences viewpoint and is not geared so much to preparing ordinary participants in the business world," Caves says.

Abbe Professor of Economics Dale W. Jorgenson, chair of the economics department, declined to comment on whether accounting courses had a place in the department.

Caves says that even though accounting might not be central to the economics department, he would support offering the course to meet student demand. "I'd be happy to see the department offer it as a service course," he says. "The problem is that we have no very effective way of getting anyone to teach it."

While Harvard seniors may not have the finance background of their counterparts at, say, Wharton, Cosentino says Harvard's liberal arts approach is still very attractive to potential employers.

"The typical student is going to retain about five percent of what he learns throughout the four years here. What they retain is the process. They become better writers. They analyze issues better," he says. "That's the reason why companies come back here year after year.

Nevertheless, Cosentino advises students to take accounting at MIT, and many of the seniors enrolled in the course say Harvard could offer more to its business aspirants.

"We don't want this to become Wharton," Fields says, "but a few classes here and there in accounting and in finance would be more helpful than detrimental.

Professors say the College does not regularly give the course because it is hard to find qualified instructors.

"There's no one on the faculty who does accounting as their field of study," says assistant professor Andrew P. Metrick, the head tutor in economics.

But the lack of teachers points to a larger issue. Many economics professors say that vocational courses like accounting do not fall into the discipline of economics.

"It goes hand in hand with an intellectual decision that the faculty made to not have an undergraduate business major," Metrick says. "While accounting is a perfectly legitimate field of study, it's not necessarily economics."

"Our department is oriented toward an arts and sciences viewpoint and is not geared so much to preparing ordinary participants in the business world," Caves says.

Abbe Professor of Economics Dale W. Jorgenson, chair of the economics department, declined to comment on whether accounting courses had a place in the department.

Caves says that even though accounting might not be central to the economics department, he would support offering the course to meet student demand. "I'd be happy to see the department offer it as a service course," he says. "The problem is that we have no very effective way of getting anyone to teach it."

While Harvard seniors may not have the finance background of their counterparts at, say, Wharton, Cosentino says Harvard's liberal arts approach is still very attractive to potential employers.

"The typical student is going to retain about five percent of what he learns throughout the four years here. What they retain is the process. They become better writers. They analyze issues better," he says. "That's the reason why companies come back here year after year.

Nevertheless, Cosentino advises students to take accounting at MIT, and many of the seniors enrolled in the course say Harvard could offer more to its business aspirants.

"We don't want this to become Wharton," Fields says, "but a few classes here and there in accounting and in finance would be more helpful than detrimental.