[startupcfo]

For obvious a reasons, a lot of companies want their finance leaders (CFO, VP Finance, Controllers) to have public accounting experience, specifically as an external auditor. The advantages are clear as day.

I currently work as the finance leader at a startup and working towards a 7-digit payout. I will want to continue being a finance leader at other early stage companies. However, I want to prepare myself to be the most capable (and marketable) CFO possible.

WOULD IT MAKE SENSE TO GO INTO PUBLIC ACCOUNTING FOR A YEAR AS AN AUDITOR after this company and before my next “real job” as another leader?

EDIT: my intent was to go from a CFO, to a little auditor in public for 12 months, then back to a CFO at another tech company.

Pros:

– Hands on experience with auditing

– Makes you better at designing internal controls at the next company. This is a facet of finance/accounting where I’m weak

– Gives unique insight into different industries. I have experience with hospitality, finance, and tech. Would be a valuable experience to see the insides of a manufacturer, retailer, school, etc.

– Pads the resume if you have a national/Big 4 firm on the resume which I don’t have right now.

Cons:

– 75% pay cut. Not that I’d need the money, but I’m afraid that when I negotiate my next job, their pay expectations will be anchored to an associates salary

– Red flags, if people think it’s odd that I’m 40 years old in an associate’s position

This idea is either the smartest play ever or the dumbest play ever. Thoughts?

BEC - 87 | 02/28
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AUD - XX | 09/10
FAR - XX | 12/10

[MaLoTu]

I was upfront about. I hit it off with everyone, so it was definitely a result of playing it by ear. There were other interviews I had that I did not bring it up.

I had a lot in common with the people at the firm. I could talk to them easily. They all really enjoy working there and you can feel it, other firms had a really hard time selling it, kwim. It had everything I was hoping for in that they had a lot of public clients and the partners that came from the big four kept the things they liked about it and did away with everything they didn't. So I have big 4 competitive pay and benefits, Including vacation. I felt like it was a good compromise.

[CPYay]

Wow… good find. Congratulations. I hope to find something exactly like that. I'm big on culture and open discussion. Happy employees will be more willing to work hard than bitter discontent ones! Good luck!

[mhueycpa]

I guess the CPA license is just a piece of paper most of us have which means absolutely nothing according to you. If I may, what pieces of paper do you have? Want to learn accounting go back to school and get an accounting degree, assuming you don't have one already. Also, just because you assume something is a given in your question doesn't make it true, as everyone has explained.

THE 300 CLUB WILL DO JUST FINE!

[jm962011]

one year as an audit associate at big 4 or any firm is not going to teach you what you need to know about accounting or internal controls. It's going to be a lot of ticking and tying.

Here's the thing, when you're a C-suite level executive, you “outsource” these things by finding employees with that knowledge. Director of Accounting, Director of Internal Controls. If you don't have that budget, you outsource it to an accounting firm.

I worked at a software company and I do not think the CFO had public accounting experience. He may have but it isn't mentioned in his write up about why he got his MBA. (here is a link to some background info: https://kelley.iupui.edu/spotlights/steve-head/). He recently retired and I know the new CFO does have public accounting experience.

As a tax person, I encourage you to not only make sure your accounting records are correct, make sure your taxes are, including sales tax if you're a software company. I've seen some huge messes.

[FIFOisbetterthanLIFO]

Exactly what @jm962011 said. You should be outsourcing internal control design or at least get some consulting where they help build a road map and once you have full understanding you can take it from there. CFOs come from multitude of backgrounds.

Have a look at the below article. It is from 2014 research, but the key here is that only 30% of public company CFOs come from a public accounting background. You are overstressing bro.

https://ww2.cfo.com/job-hunting/2014/08/cfo-turnover-dips-reversing-three-year-trend/

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[Missy]

If you're determined to get the public experience as a personal goal, then I say do it. I still contend in a year or two when you're looking to go back to CFO status it will be more challenging than had you just stayed put (I'd see that career progression, figure you lost your CFO gig and couldn't find anything better than an entry level public job, even though you could explain the progression will you get the chance to?)

The other important factor is are you looking to move start up to start up at a pre-ipo stage or looking to take them through their IPO. Even with 1-2 years audit experience you'd still want consultants through the first few IPO's but if you're looking to exit before that stage theres less value added from public experience.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[ScarletKnightCPA]

Honestly at your level I think that taking a entry level audit position will tarnish your brand in the view of potential interviewers.

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[monikernc]

get your license. start your own practice. get experienced partners and do some of the grunt work to learn what you think you need. get the benefit without the step back. sell your share when you are ready to move on.

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[Peterman25]

If you are so intent on learning more about audit and accounting just go take some classes. You will probably pick up a lot of things real quick. Or maybe go try to find some sort of internship to learn from?

BEC 7/14 - PASS
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[NorCalMike]

Startupcfo, I'm in similar situation as you and have considered the move you're talking about. Happy to chat about this and give my two cents if you want.

NorCalMike

[Anonymous]

I keep seeing people post in this forum that Big 4 experience is a “must” to be a manager or executive at a Fortune 500 company (not what OP wrote but others have said it). Maybe my company (Fortune 300) is an exception but I really don't think this is true. The CEO of my company never worked in public accounting. Neither did any of the managers I have had. I think taking a 75% pay cut to go from a finance leader to an associate position in your situation is, in your words, the dumbest play ever.

[Zaky]

I wouldn't like to hire a CFO who decided to take a 75% pay cut to do ticking and tying for a whole year. I'm sure he will continue to make wrong decisions throughout his career, but this time, he will not only bankrupt himself but the company as well. Please show more respect for the CPA license because it is evident that you don't have it. If you did, you would know what an Auditor does for the first 2 years of his career.

[.]

I wonder why the Big 4 experience is so important to employers. Recently a NYC startup posted in this forum saying they are hiring for a staff accountant position and that Big 4 experience is “a must”. So picky, just for a crappy staff accountant position.

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[Zaky]

circadia, the part I don't understand why would it be relevant to have someone with big 4 experience if you were only there for 2 years. The auditors we have from PWC at the fortune 100 company where i work only do ticking and tying for the first two years or review all bank reconciliations, they don't do anything else. How does this bring value to any corporation in private accounting? I understand if the big 4 candidates made it to manager or was there for 4 to 5 years, but two years is not enough.

[Pete]

This is the problem I face circadian. All the companies (even small) want BIG 4 accounting experience, but all the large public firms want prior public accounting experience as well.

The large firms all told me I should consider smaller firms to gain the experience for the license a few years ago because I didn't have 150 credit hours (at my school's career fair). Low and behold, the small firms want BIG 4 experience as well. Guess if you don't catch on-campus-recruiting, you're screwed.

I wonder if this paradox exists in other fields as well?

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[Author]

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