What Size Accounting Firm Should You Work For?

Kevin RyanAdditionally, there is a very narrow scope to the work
 they perform which generally consists of highly
specialized tasks. The downside of all this specialization
 is that the average staff accountant at a national firm
            Each year, approximately one inwill not get a view of the client's operations as a
four accounting majors enter the field of publicwhole.
accounting. A key decision facing these individuals is            Stress and quality of life are often
whether to work for a local or national accounting firm.key decisions in any individual's career choices.
This is an important decision since, according to oneCompetition at large firms can be stiff and turnover of
2004 AICPA study, national accounting firmsnew staff is high. There is a lot of competition for
experience nearly twice the annual employee turnoverpromotions at these firms and many staff view each
as their local counterparts (20% versus 11%). In light ofother as competition instead of co-workers. In a
these statistics, it is important for prospectivenational firm, a staff accountant's success is based
accounting employees to spend some timeupon his or her ability to rise through the ranks.
researching their different employment options. ThePromotions at the national firms are based on not only
factors of a working environment that should betechnical ability but also an individual's ability to manage
researched before accepting a job include such issuesand motivate a group. Seniors have to be able to deal
as hours worked per week, competition and criteria forwith highly successful and demanding partners and
promotion, variety and scope of work, growthmanagers, as well as maintain a high level of technical
opportunities, and job satisfaction. A propercompetency and supervise the staff under them. In a
understanding of these factors should assist publicrecent AICPA study, only 2% of individuals entering the
accountants and increase the opportunities for jobaccounting profession ended up being promoted to the
satisfaction and promotion.partner level.
           Smaller, local firms are generally            Advancement opportunities at
managed by two or more CPA's along with severalsmaller firms are more limited than at their national
staff accountants and offer a more informal workcounterparts and promotions are generally based on
environment then their larger counterparts. Staffdifferent criteria. In smaller firms, technical competency
accountants in smaller firms typically work alone, withis stressed much more than managerial abilities when
little direct supervision. Additionally, accountants atpromoting staff. Individuals who prefer a quiet work
smaller firms typically spend most of their time in theenvironment and are less team oriented would
office and coordinate most of their work through theprobably be best in a smaller, local firm.
owner of the accounting firm rather than with the            Employees at national firms also
client. Staff accountants at local firms are routinelytend to put in longer hours, frequently between 50 to
involved with many of the day to day accounting60 hours weekly throughout most of the year.
issues faced by clients such as auditing, write-up work,Additionally, that number increases as an individual is
payroll, tax, and management advisory services. It ispromoted. Although this may seem discouraging to
common for staff at a local firm to obtain a broadersome, the work becomes increasingly more interesting
perspective and a better understanding of the dailyand less mundane as an individual's career progresses.
accounting activities affecting a business.In fact, partners at large firms tend to have a higher
            Larger, national accounting firmsjob satisfaction than those working fewer hours
are much more structured and management isbecause of the variety of and independence in their
generally composed of many partners, directors andwork.
managers. These national firms tend to serve larger,            When entering the accounting
corporate clients and staff accountants will spend theprofession, an individual will have to decide between a
bulk of their time out of the office and at the client.local or national firm. There is no objective answer and
Staff at these larger firms will work as part of a teameach person has to decide which one serves them
consisting of seniors and other staff. These teams arebest based on their own personality, ability and goals.
assembled as needed in order to complete specificThe decision should not be made lightly, where you
tasks. As a result, new staff at these firms tend towork will have a dramatic impact on your career.
have very little contact with upper management.