[Leviticus]

So what are the benefits of Public Accounting?

Through out college, I have been thinking of going into Public Accounting specifically Auditing. I graduated over a year ago and got my CPA tests behind me, and now the real world is hitting me.

It is impossible to get an interview (never mind a job) with any public accounting firm (even the small ones) without having any relevant experience. I’m now beginning to think that there is no advantage in public accounting. If i get a job in any other industry working under the controller, I can get my 1 year experience (for the cpa) and move along the ranks.

So my question to you folks: Is it worth sticking it out jobless and aggressively hunting down a public acct job, or is a job in the accounting division of lets say AT&T or Bloomingdale’s just as rewarding?

? FAR - 91 (08/25/11)
? BEC - 79 (04/12/11)
? REG - 89 (07/18/11)
? AUD - 95 (10/18/11)

[kandisjoy]

Hi Leviticus. Where'd you get your name from? (ha ha)

ANYways, I worked in public accounting for about a year and I've worked in private accounting (at a bank, under the controller) for just over two years.

I am just speaking from my own experience so… nobody get offended by this.

I hated public accounting. The hours were awful (like 10-12 every day, not just during “busy” season). I was out of town for about 4 months of the year, and as magical as staying at a hotel and eating out every night sounded when I got hired, it lost its fun real quick. I don't know about you, but I don't enjoy working closely with the same people for 12 hours straight and then also eat every meal with those same people, then go to the hotel with those same people… It's tiring, even if you like them. I also gained weight since I was eating out all the time. It's hard to order a salad when you can get a steak…

Aside from all of that, the worst part about public accounting was the politics. If you don't like kissing some serious booty and if you aren't really good at making yourself seem amazing all of the time, then public accounting may not be for you. I'm not saying ALL firms are like this.. but from what I've heard, the majority of them are. I literally got an awful review only because the manager of my audit didn't like me for personal reasons. And don't even get me started on why she didn't like me.. I think I've already explained that on another thread.

On a side note… I honestly didn't learn very much that was useful while I was working in public accounting. Unless being confused a lot is useful. I did get to dabble in auditing and in tax, which helped a little since I do property taxes at my current job and I also perform some SOX testing. I'm not sure it was worth the year I spent there though… That was a truly miserable time in my life.

Most people work in public accounting just so that they can get experience to get into private accounting. In my opinion, the sooner you can get into private accounting, the better off you will be. I don't regret leaving public accounting at all. I now get to work 40-45 hours per week.. I get treated a heck of a lot better, and politics are almost nonexistent. My pay only a tiny bit less than it was in public accounting, but it's totally worth it. Hourly, I'm making more.

Hope this helps, and good luck in your job search. :0)

FAR: 71, 77
BEC: 70, 82
AUD: 62, 78
REG: 71, 68, 85

CA Licensed 11/2011

[Leviticus]

Thanks for the reply kandisjoy!

So it seems there are only disadvantages? Is the only advantage the fact that you will have an easier time finding a job in private accounting? Is that the entire reason people kill themselves to get a job in public accounting and kill themselves working 60 hours a week when the pay isn't that great?!

? FAR - 91 (08/25/11)
? BEC - 79 (04/12/11)
? REG - 89 (07/18/11)
? AUD - 95 (10/18/11)

[kandisjoy]

No problem! I'm sure that there are positives. For example, I think that some people actually enjoy the work. Some wanted to be partners. Some people are work-a-holics, and I think those types can do really well in public accounting. Personally, I work to live… not the other way around. I know that the majority of people that I knew in public accounting were in it just to get experience so they could get into private. Maybe we'll get some other responses from people who like public accounting.

One advantage I can think of is that it probably helped me get my current job. But if you can get into private accounting without putting the time in at a public accounting firm.. more power to you!

FAR: 71, 77
BEC: 70, 82
AUD: 62, 78
REG: 71, 68, 85

CA Licensed 11/2011

[katiekanton]

I have done both. If your long term goal is to be controller or CFO, then go into private accounting. If you want to run your own firm, you almost must go into public. Knowing debits and credits doesn't even register on the radar of knowledge you must have if you have your own firm, and they DON'T teach it in college. My experience is that your income is likely topped out in corporate accounting around $80k for controller, $100k if you're really lucky (not good, but lucky, and these numbers are present value of course). In public accounting, depending on the firm, you can earn more, especially if you free-lance returns in busy season. (You can also do that if you're in private if you have the knowledge and skills–the worst thing about tax returns is NOT having to calculate AGI given a set of variables. In the real world of taxes, the computer does all that crap for you. The challenge is knowing which screen and which of the thousands of blanks to put the appropriate number into so that it flows to the right spot on the tax return, and I'm not aware of ANY tax softwares that are what you would call user friendly, the multi-state returns especially are really screwed up.) If you want to run your own firm, you can make much more than $80k. Also, if you think your talents lie in this direction, you can earn more than that as CFO.

FYI, Accounting Professors are the most highly paid in the university system and can earn more than $100k per year. If you add in special speaking engagements and seminars, you can earn way more than that, plus see the world without the hassle of weekly auditing assignments. You also can continue filing returns and running your own firms. My accounting professors had some really sweet deals going, but you have to be willing to put up with all the BS in the university system. Talk about politics! (BS doesn't stand for “bachelor of science”.)

Oh, one more thing. I had the opposite experience as Kandisjoy. When I was in private accounting there were nights I literally slept on the floor in my office… for only an hour or two before I had to go back to work. In public, there was the “high season” push, but then the rest of the year was really laid back. FYI, we didn't do much auditing, and it was a smallish firm.

AUD - 88
FAR - 90
REG - 85
BEC - 88

[heatmiser]

I work in Private Accounting. I am very happy about my decision. Plus my job does rotations so I get the experience of a public auditor in a sense anyways. But yeah, can't go wrong with Private IMO.

2011 CPA Exam Graduate

[misanthrope87]

Public accounting broadens your mind and you get to learn all kinds of things related to industries. It's refreshing to go from client to client and you don't have to do the same exact thing every single day. It really hones your problem solving and analytical skills. And if you weren't that sociable before, you will become sociable and learn to get along with all kinds of people. That being said, I hate auditing. I cant wait to find the perfect moment to leave. Going into private without any experience is harder than public with the economy in my opinion. Public is a good opportunity to learn and boost the start of the career. But its best to get out after 2-3 years because it does make a person miserable. Read this https://audit.wordpress.com/2006/11/10/holy-crap-this-really-sucks/

Truer words haven't been spoken! That whole thread is about people complaining about auditing and making commentaries…it's all real and too true.

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[jelly]

Depending on the public firm you're at and your personal preferences, you'll get to see a variety of industries and complexity. If you like variety and wonder about how a particular business or industry works, a larger accounting firm usually has enough clients to span all kinds. The hours are pretty brutal, but you can honestly say that there isn't a dull moment.

Private has its pluses, b/c you're learning about how an entire industry works, and strategy behind mergers, acquisitions, spin-offs, operations, marketing, supply chains, tax planning, and economic behavior. Private industry accounting can be a tricky thing though, b/c it's easy to get pigeonholed in one area after working there for a few years, and not always easy to escape if you start to feel bored of the industry, or the lack of complexity. For instance, if you're sick of wholesale/retail consumer products, it's easy (especially nowadays when experienced hires are preferred) to be considered unqualified to work in something different, like oil & gas.

I don't think anyone really escapes work politics, although there tends to be less drama, or the drama is a lot more transparent, in smaller places.

You can always do your own thing and open your own business – whether it's professional services or a restaurant. If you are okay with uncertainty, a very varied work schedule, and getting past frustrations, it's very rewarding. It's also good discipline and motivation if you've had a lot of former bosses you weren't crazy about.

Personally:

I think what's not easy about public accounting, besides the long hours, is that very few people know what they are necessarily getting into when they graduate. I had no idea what audit really was, but I started out in it b/c that's what nearly everyone needed as work experience for the license. I thought tax was just doing individual returns and not much more. I think the hours and the (relatively poor) training in audit turns off a lot of recent grads, as it did for me.

As much as I dislike external and internal/SOX audit, it's served me well on the client side b/c I can spot weaknesses, errors in audit test plans, methodology, field work results and challenge reasonableness in conclusions; accounting firms and their audit teams get rather uncomfortable when you question their approach and point out their mistakes. I spend a good amount of time finding and correcting accounting or tax errors made by accounting firms or other vendors.

Currently I'm actually looking to jump to the other side – taxes. I do a lot of the simpler, quarterly sales and payroll taxes, but I also research a lot of other things for work, including healthcare legislation, worker classification, individual international tax.

Couldn't pass again!

[markiux88]

I want to do public accounting so baddddddddddddddddddddddd…………

[Laura]

It's not as easy to move from industry into public but once you have done public you can easily go to industry. Just my 2 cents!

REG-80, 77, 77
BEC-67, 68, 71, 67, 71, 74, 71, 74, 72, 77
FAR- 72, 65,67, 53, 75 (truth be known the 53 was with 4 hours of studying)
AUD-58, 62, 72, 74, 74, 75
took 5 years but I'm DONE!!!!!!!!!!!!!!!

[Herbieherb]

Per hour they make alot less…I could get 2 jobs if I worked 70 a week?

NEW YORK- DONE

[markiux88]

you guys make public acg sound such a nightmare…….Perhaps my job is not as bad as I thought…hmmmmm..I'm making like $110 per hour actually worked…An auditor making 50k and working more than 50 hours makes about $18/hr……Good bye public acg…

[Anonymous]

In this economy, it would be tough not to take an accounting job that is offered. That being said, public firms are notorious for high turnover and spots do open regularly.

I think the experience in public accounting is best part. I feel if I stick it out for 4-5 years, I could literally get a job anywhere I want to move. While the hours are tough, consider it that much more experience you carry to your next job. And in most cases, you get a variety of experience as opposed to industry (this is not always the case).

And politics can suck, more so than other places, especially if you are wanting to make a career in public accounting. As someone who knows I won't stay passed 4-5 years, I don't get to involved and can stay out of the…”waving” contest over hours worked and ass kissing.

All in all, I think public accounting gets put in many peoples mind because of professors and the CPA exam but it is not for everyone. A better work/life balance and pay can be found in industry, just keep looking at both.

[Leviticus]

So to conclude:

In Private Accting I will have an easier time finding a job, less stress, less unpredictability, and a higher hourly wage vs Public Accounting.

If I do Public Acct, the only advantage is that I will get a more varied (and interesting) experience and thus I'll have an easier time switching into any private industry, which ultimately that seems to be the goal anyways?! That everyone in public would like to switch to private after a few years. Hence the fact that from private you cannot switch into public seems to be a moot point anyways.

So, I really dont see why not to just head directly into the private industry now, and get a head start. With of course looking towards the future not to be molded in one specific way. Possibly by moving from one industry to another every 3-4 years.

Is there anyone that disagrees and thinks its still worth fighting and getting into public/big4? I believe i have the skills and talent it takes to do either track. but why bother sweating it out if it isn't even rewarding?!

? FAR - 91 (08/25/11)
? BEC - 79 (04/12/11)
? REG - 89 (07/18/11)
? AUD - 95 (10/18/11)

[kandisjoy]

I wouldn't say that public accounting is more interesting than private. I'm sure that it depends on what you're doing, but I remember having a REALLY hard time staying awake when I was auditing. It was so, so so so so so boring. Taxes were a little bit better but still not thrilling. Every important decision that actually needs to be made is made by the managers – you just put the obvious numbers in as a 1-2 year associate. Pretty dull stuff. I think that it might be better at a smaller firm where you're actually getting to know the clients and getting really involved.. but not so much at bigger firms.

As for industry/private accounting, it's still kind of boring at times, but not half as boring as public was for me. I feel like I'm a private investigator sometimes at my current job (and I think I've seen someone else on here say that recently about private accounting). When something's out of balance, I don't just ask someone else why it's wrong or make a tickmark and call it immaterial (like I would in taxes or auditing). I get to investigate why it's wrong. I get to use my critical thinking skills (horray!) which I felt were grossly underused in public accounting.

I really hate saying all this because I'm afraid someone will read it as the only experience out there. This is just my experience in public and private accounting it. You could have a totally different experience. :0)

And just a note – a lot of private employers are looking for someone who has at least a couple years in public accounting. It may be difficult to get a job in private accounting without that experience. I think that's why a lot of people go into public accounting.

FAR: 71, 77
BEC: 70, 82
AUD: 62, 78
REG: 71, 68, 85

CA Licensed 11/2011

[jelly]

Public accounting is a good base to see everything. If you want to use food as an analogy, public accounting is like going through “The Joy of Cooking” cookbook or Bittman's “How to Cook Everything,” sometimes in a somewhat chaotic manner. Private industry is where you zero in on a specific area, like seafood, desserts, or specific ethnic cuisines or styles.

Moving from one industry to another every 3-4 is not easy in good times, and even less so in lean times, where it's mostly experienced hires sought after. You'll need to show how/why you have some experience in another area, via internship or freelance, i.e. the lingo, the trends, the specific accounting or tax treatments, the legal tricks used, even though you're still dealing with food in the kitchen. It's not impossible to jump from one industry to another, but there tend to be less entry-level jobs in industry during lean times, and the learning curve is sharper and just takes longer.

It's really a personal preference. What industries do you know of, and which do you like? Are you okay with those options? On a cautionary note, if some of those industries went away, are you okay with that?

Couldn't pass again!

[Author]

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