[Anonymous]

What is the best group to be in within a Big 4 or 2nd tier firm if you ultimately want to open your own tax firm?

I ask because that seems like the best exit strategy when in tax (as that is what I like, believe it or not). But can some A71ers help me decide what group within the larger firms would best suit that end goal.

If you can please be specific. I greatly appreciate all opinions and information.

[Sir Ivalis]

I'm in big 4 tax and I can say that I think it is a pretty terrible place to go if your goal is to open your own firm, unless by “ultimately” you mean after 15 years of experience or so. Big 4 tax practices are huge and therefore almost everyone specializes from day one for efficiency. On top of that, you'll be doing work for mostly very large corporate clients.

From my impression of most single-owner or few-partner tax firms, you'll be taking any work you can get and will need a lot of general experience to do so. You will also probably be financially dependent on doing a lot of individual tax returns. The big 4 tax practices do have individual tax teams which could help train you in this regard, but even then I think it's a bit different.

You'll be a lot better off working in a small CPA firm, tackling everything that comes across your desk, to get that broad experience and to work with the type of clientele you'll actually see in your own practice later. However, like I said, if you commit to putting a lot of years into the big 4, you will probably see enough issues over that time to be good to set up your own shop.

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[Anonymous]

@Sir Ivalis

Thank you for your feedback.

I was thinking the Private Client Services group, High Net Worth group or Estates and Trusts group. I did not think that they would have piece meal input and components like what you are stating. However, you would know more than me and that is why I was posing the question. Thank you very much.

[Sir Ivalis]

Well, I'm not sure we have the same idea of what I'm talking about. If you do high net worth, then you'll deal great with high net worth clients; if you do estates and trusts, same deal. My point is, don't expect to do that and also be able to expertly handle a client's S corp issues.

Anyway, out of those choices, I'd definitely recommend high net worth. That will always be relevant and there are plenty former strictly tax people who become tax/wealth management professionals and have plenty of success there.

REG - 81
FAR - April 13th (73), TBD
AUD - July 6th
BEC - TBD

[SeattleCPA]

You don't say which type of tax practice you want to run… which would seem to me a critical first thing to nail down…

But what I'd suggest is you look through CPA firms for sale someplace like bizbuysell.com. Find some firms that match what you would aspire to own and operate. See what they do (e.g., corporate work for small businesses, or 1040s for real estate investors, etc.) Then get a job at a firm that looks like the sort of firm you would like to operate.

[Author]

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