[needhelpnow]

So I know there is a lot of us who are strongly rooting for one side over the other. I have heard stay away from tax, but then there are some who love it. What about audit? Here are some questions that I had for anyone to weight in their opinion:

1) Is tax a good field to be in long-term? What is you wanted to open up your own shop one day? Then what?

2) Which one is more profitable (rewarding) in the long-run?

3) What is someone wanted to practice law for instance after going through Accounting career? What is the best route then?

4) Is it a good idea to do Tax for a bit, and then move to Audit, or would you rather do it the other way around?

Speak from your personal experience or from what you know. Thank you!

[kpb]

I'd like to know also!

BEC - 81 4/08/14
FAR - 80 8/25/14 Thank you Jesus!
REG - 69 (Nov 14),80 1/08/15 Thank God!
AUD - 70 (May 14), xx 5/1/15

Becker Online & Becker Flashcards
I definitely wish I was one of those people who got all 4 exams done in 4 months, but unfortunately LIFE (being a newlywed, stress, adjusting to newlywed life and cpa exam study life, as well as starting a job with a Big4 which I am very happy about) got in the way, just happy that I am passing period!!

I can do all things through Christ who strengthens me!

[Anonymous]

If you do tax, then for your whole life you will be doing tax..unless you go to some type of graduate school. In my opinion it takes a special kind of person to want to go the tax route. If you really wish to open up your own shop and perform tax returns, then tax is for you.

With audit/assurance you'll have limitless exit opportunities in various industries and for different types of positions in the accounting/finance world if you go Big 4. I also think it takes a special kind of person to enjoy executing audits. However, I believe the sacrifice is worth it for a few years, but only if you go Big 4 and reap the exit opps.

[Sir Study Alot]

CPAOneDayHopefullay point is valid, but one could also argue that if you choose audit you are going to be doing accounting your whole life. As an ex auditor I don't see auditing experience translating to finance any better than tax accounting. If anything tax accountants deal with financials more than the average auditor. Tax accountants also analyze various components of the financials to minimize liability, while my guess is most people who stay the typical 3 years of audit at Big 4 will not do a variance analysis of financials

A few years in tax accounting, specifically high net worth individuals, can give you the work requirements to sit for the CFP exam. From there you will have access to a whole range of exciting consulting jobs and will have already mastered the hardest part of individual consulting which is the tax component. You could also become a tax attorney if you don't mind making 150k and up a year.

It is easier to bill higher rates for tax accounting services when compared to bookkeeping services, so tax accountants have better opportunities to open their own successful practice. Audit only firms will be more difficult to market and attract clients. Tax accountants have more opportunities to work from home.

If you don't like tax accounting, don't want to be an entrepreneur, then your exit opportunities will be limited if you choose tax. Audit would give access to general accounting jobs which are at least 50 times more abundant than tax jobs. Tax accounting jobs tend to pay more than general accounting jobs. I also think anyone that stays in tax is guaranteed to make over 80k a year after several years, while the auditors will hit more road blocks on salary as the competition is more fierce at higher levels. The Big 4 supplies alot of general accountants to fortune 500 companies, but the Controllers have 10 years of Big 4 experience and the CFO's have a Harvard MBA and sold their first IT company at age 27.

Passed all 4 exams in 2014!

[Anonymous]

I know that many of the members of this forum are strong supporters of auditing over tax, so I wanted to pitch in this once with my reasoning and preference for tax. It's certainly not all I do as I work for a local CPA firm and dabble in many different areas, but it's our major area of focus.

1) I believe tax is a good field to be in long-term, particularly if you do want to open your own business up one day. As I said, I work for a small, local CPA firm and we compete with several other local and regional firms for business and have had no trouble procuring tax clients from others as they appreciate the more personalized attention they get from a smaller firm. So, in my employer's case, tax proved to be the launching pad for his business to grow.

2) I think this question depends a lot on the individual and what they're willing to do to earn that profit and also the area you're in. Though I work in a small city and we offer auditing services to non-public companies, there honestly isn't much interest here when small businesses can benefit just as much for most purposes from having less costly compilations and reviews prepared instead (both of which we do quite a bit more of). If you're attached to a particular geographic area, I would consider what the client populace around you is most interested in in terms of making more of a profit. This is, however, me speaking from small firm experience.

3) Two words: tax attorney. There is still plenty of demand for them where I'm at and it's a very lucrative career. You could also pursue the LL.M. in Tax if you go this route, so tax lends itself well to the practice of law.

4) If I had to go back, I'd choose to do tax first again even if I do decide later on to look more into auditing. I'd much rather deal with a constantly changing tax code while I'm young enough to adapt to needing to keep up with all of the changes. 🙂

All in all, I think tax is a good profession for those who are interested in it. I personally enjoy the planning aspects of it as well as helping both individuals and businesses to save as much money as they can. My firm is starting to branch out into not just offering tax planning, but also financial, insurance and retirement planning since they really all go hand-in-hand at tax time, so I'll be taking more exams after the CPA exam to help my employer start establishing that portion of the firm.

[Lindrobe]

I recommend that you strongly consider the following factors:

1. Area that you live-if you plan on staying there, are there a lot of companies that have their own internal tax department?

2. Are you interested in having your own firm someday?

3. Will the tax position you are considering force you to become highly specialized in one area (NFP, tax credits, etc.) or will it give you experience preparing returns for a variety of entity types?

I have worked in NFP tax at a large, private university for the last five years and found that my experience is pretty specialized for the area I live in. I am currently looking for a new job and have found that my experience does not apply directly to many.

I think that a tax position that gives you the opportunity to work on a diverse array of entity types could be good for some people. I know that tax season at larger firms could be pretty intense, but you could always get your experience and then move to a small firm, start your own firm, or take an internal tax position.

It is great that you are thinking about these thing early on. I graduated with my BS 10 years ago and had never thought much about where the jobs I have taken are going to get me. I really wish I had put more thought into my career choices and career path, but live and learn I guess.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[fuzyfro89]

I don't think anyone says tax is a bad career, only that working in public accounting in tax can be more limiting to your options. This is totally irrelevant if you LIKE the tax field…

1) Is tax a good field to be in long-term? What is you wanted to open up your own shop one day? Then what?

Yes, it's easier to open up your own firm if you do taxes than audits. Technology (i.e. Turbotax) may eat into the basic 1040s, but that only means you'll have to move up-market (i.e. more complicated work), but you'll have to judge that risk.

2) Which one is more profitable (rewarding) in the long-run?

Depends on what you do long term. If you work hard and make partner, then either will be very rewarding. If you are average, then both will be mediocre.

3) What is someone wanted to practice law for instance after going through Accounting career? What is the best route then?

Again, depends on what tax specialty. If you go into tax law, then the point is obvious. If you want to do SEC, transactions, whatever else, than audit may be slightly more helpful, but your law degree will be a much bigger determinant than which area of accounting you worked in.

4) Is it a good idea to do Tax for a bit, and then move to Audit, or would you rather do it the other way around?

Both switches aren't easy, because they don't overlap much. I would say do it sooner rather than later (e.g. within 2-3 years at most), since you'll sort of have to start over at the bottom.

[Anonymous]

FREE ADVICE – Don't be a tax accountant

Enjoy.

[megasaurus]

I'm a tax senior with a big 4 firm and I love it. I feel like the world is my oyster as far as opportunity (whether I want to go industry or smaller firm). I think the best way to decide is to talk to auditors or tax professionals about what they do, how they work, etc and see which one meshes better with your personality.

[Author]

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