[jessie424]

I got laid off from a small Public Accounting firm two weeks after my first year anniversary. They had restructuring issues result from the former managing partner left the firm and took away big amount of clients. Bunch of colleagues and Admin people were gone before tax season. They either quited for new jobs or were being laid off. The firm recently merged with a new team and acquired all of their clients, hoping it should compensate the missing income from the separation of the former partner. We were told that we should able to help out with their clients so we won’t be short on work. I was naive and assumed I should be safe since I were busy for the first tax season worked on mostly those clients who stayed. Turn out to be I was wrong for not prepare for this at all. They told me it’s performance issues, nothing personal. However, my only negative feedback from the most recent performance review was to be more proactive in updating project statues and meeting internal deadline. I first thought about i was fired instead of being laid off since they mentioned about my speed and communication skills. However, They gave me a small raise after the first tax season and a couple hundreds dollars of bonus. I was the newest staff of the firm, but not the lowest paid. I was being low on work for weeks (Same as my other tax colleague) and already tried to bill as much as possible even though the project costs me less time than what I put in my time sheet. I know I have to let go and move on, but it bugs me so badly whether it was truly a performance issues or they just want to cut the costs.

How bad does it hurt from being laid off? I have my CPA license and 5 years of public accountant experiences. It was the first time of my life got involuntary termination. What will be a best way of justifying my involuntary termination without leaving the feeling I was being fired? If the interviewer ask about one of the negative feedback from my most recent performance review, how should I response?

REG: 81 expired. Schedule in July 2014. 86 done!!!
AUD: 86
FAR: 80
BEC: 75

[Anonymous]

This is common in many accounting firms, despite what others will tell you. They let go of good talent all the time in order to keep costs low.

When you work for a larger firm, you have multiple partners, an HR department, and more oversight compared to the smaller firms.

Smaller firms just have a few partners (maybe just one or two) and maybe even an office manager person who is kinda like HR, but not really.

Basically at the smaller firms, there is less accountability and oversight for the behavior of management. They can do what they want and not really have to deal with the consequences, so the work environment tends to be “less fair”.

That's the overall truth of the matter. However if a recruiter or future interviewer asks about why you left that position, I would just tell them what you shared here… that one of the partners left and there was a lot of restructuring going on. I would ignore the performance review, all firms give less than stellar reviews to establish their “dominance” over employees and also to cover themselves in the event of unemployment claims/lawsuits.

[Missy]

Do you happen to know your former employer's policy on employment verification? It's usually in the employee handbook if you have it. Important to know because if you were “laid off” your employer would answer the question “is this person eligible for rehire” as yes. If your prosepecive employer called to ask if you were eligible for rehire and your former employer said no, that would be a red flag. Most but by no means all employers will only verify title and dates employed. In that case you have a bit more flexibility. It's not the end of the world either way, if you're the best candidate for a position, why you left your last position isn't a dealbreaker.

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

[Anonymous]

@Missy, if a previous employer is asked to provide a “title and dates employed” reference, what happens if they provide the incorrect information? For example, what if the dates they provided were inconsistent with what's on your resume? Their records being incorrect and the resume being correct.

Is that HR code-speak for “I really don't care about taking the time to give this employee a good reference”? Also if they provide the incorrect dates, could it be an indicator that they are tipping off the prospective employer to look more into the employee's background without actually saying it?

On their own behalf, they could easily say it was a clerical error, however, I'm curious if this is one of the unspoken methods that companies commonly use to get around the law?

[Missy]

I've never heard of this as an issue but usually the hiring company says “missy was your ceo from 1941-2017?” and the previous employer says this is correct or no she was the office manager from 2015-2016. It's unlikely but possible a mistake could be made but you'd never know it because you just wouldn't get an offer.

It's hr code speak for the more that is said, the more potential for a lawsuit, less said is less liability always. Too many well meaning hr people open their mouths just to put their foot in it.

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

[Anonymous]

Hmm ok thanks!

[MaLoTu]

OP, based on the information you gave, it sounds like it was more of a business decision on the firms behalf.
It is possible that they kept someone with more experience and a lower pay rate because the numbers made more sense. Also, you should be thinking about it from the perspective of everyone under normal circumstances would have been retained. However, they were forced to cut the workforce.
Hopefully you can find a new position soon. Tax season is approaching so your prospects should be high.
Good luck.

[jessie424]

Is it harder to get a job without having a job? Should I not mention an end date at my resume? Assume a potential employer won't contact my “current” employer for any verification. I guess no matter how you explain, a potential employer still think you are being fired instead of being laid off since everyone will claim they are being laid off. A busy firm won't understand being laid off due to low on work. They will think you are sucks enough to get fire because the former employer already invested the time and money to train you. If I applied EDD, can they find out that I filed unemployment claim?

REG: 81 expired. Schedule in July 2014. 86 done!!!
AUD: 86
FAR: 80
BEC: 75

[Missy]

Mention the end date on a resume, its fine. And yes a busy firm will 100% understand being laid off, trust me even the BUSIEST firms overhire and end up having to pare back.

I think you're really overthinkng the being let go, they can't find out you're collecting unemployment thats insurance your previous employer paid and you're claiming on. I've been fired twice and gone on to a great career where it was never even asked why I left my last job…..if you have the skill set an employer requires, seem to be a good culture fit, they couldn't care less why it didn't work out at your last job.

Think like a hiring manager for a second, would it be a dealbreaker to you that a candidate who is likeable and has strong skills was let go from another firm thats had significant turnover? Can almost guarantee it wouldn't be.

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

[Pete]

Yea, it's VERY common for CPA firms to simply chop heads, when they determine they aren't going to make budget/have the work needs to maintain employees; this has happened to me multiple times as well as my friend.

A future employer might question the timing of your lay-off though. Typically, accounting firms, especially small ones, will lay people off, right after tax season. During tax season, they have way more work than can be handled; even a mediocre performer will help them. Usually, at this point in the year, they would keep someone, until after tax season.

A future employer WILL LIKELY ASK, why you left, especially because the employment was under 1 year. I would say 70-80% of my interviewers have asked this question. Be prepared with an answer, like “the partner left, causing a decline in revenue.” If you have a friend at the firm, have him/her vouch this fact. Further, they might follow-up, asking if you've tried getting back at your former firm, after the layoff. Your best bet is to have a story ready for this as well (ie. I wanted to go a different direction and this firm didn't offer that option-but your company does).

B=84 This exam was such a b**** that I thought I failed-don't know how these things work
A=76 Slacker I am, I'll happily take it
R=81 I LOVE taxes
F=80 I don't wanna get banned for an expletive I'm thinking with "yea" proceeding it

[JJ17876]

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[bhunt815]

My supervisor had been downsized before he got the CFO position here ($412 million annual budget state agency). Most potential employers will want an explanation but will be understanding.

FAR 04/11/2016 - 84
AUD 05/12/2016 - 79
BEC 07/06/2016 - 81
REG 08/29/2016

[thekoreanaccountant]

I was laid off just after my second tax season at a small CPA firm, a few months past my first anniversary as well, this past spring. My cpa license application was submitted to the state already. Like the OP, I was one of the newer staff members, but not the lowest paid because I brought alot of private industry experience and I already passed the exam. The supervisors said my quality of work was great, and the managing partner said I was a great employee, but I was not bringing in the rate of return they expected, i.e. I was not bringing in the money.

It was the best thing to ever happen to me. I started applying to accounting jobs the next day, got calls for interviews by the next week, and got my job that I love within 3 weeks. I went back to private accounting with a small corporation with a wealth of knowledge about public accounting and feel more appreciated than I have ever felt in my career (>6 years in private, 15 months in public). I did dwell on why I was laid off for about a week, but I knew in my gut it was the right thing. Whenever I was asked about the lay off by a potential employer, I was direct and explained how it was a business decision to cut expenses, which I truly believe is right. I also used the CPA firm just as much as they used me. I got the experience I needed for my CPA license, and got my license a few months into my current job.

AUD 2/2011 76 (lost credit), 2/2013 71, 7/2013 78
REG 2/2012 82
BEC 2/2013 75
FAR 4/2013 75

5 years in private accounting, < 1 year in public accounting. Runner, mommy, dog and cat lover. SO glad I took the exam before I went to public accounting.

[Author]

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