[whopper]

I’m looking to get out of my current job asap and came across two jobs I’m interested in. One is for an accountant at a small CPA firm, the other is for an accountant at a publicly traded company. The small CPA firm offers all services except audit although they do reviews and compilations.

I seem to gravitate more towards accounting systems and would like to get a MIS degree one day. This makes me think I might fit better at the publicly traded company but maybe somehow I could use these skills at a small CPA firm? Anyways, I could use some advice before I send off the resume 🙂

REG - 89, 04/29/13
BEC - 81, 08/06/13
FAR - 84, 12/19/13
AUD - 82, 10/05/13

[Mary 2496]

I run a small (actually mid-sized) public accounting firm. I would suggest that you really consider what you want in the long-term. Because we are a smaller firm (smaller than the big guys!) we offer actually more flexibility when it comes to needing family time and other extraneous benefits. While the bigger firm may be able to end your salary in years to come at a higher level, the closeness of a smaller firm should be considered. Smaller firms are also great for learning experiences and for understanding “how things work,” so to speak, in both the accounting and business world.

Accounting systems and MIS areas apply to both.

Best of luck!

[cool_kid]

How do you categorize a firm as small, mid size, or large?

[Mary 2496]

Based on annual revenue –

small firm – annual revenue under $10 million

medium – annual revenue between $10 million and $1 billion

large firm – annual revenue $1 billion +

[whopper]

Just got an interview at a small firm! What do you think is a reasonable starting pay? I have about 7 years acct experience, mostly process improvement work, I've done zero public accounting. But I am now a CPA. 🙂 the firm is really small, only 1 CPA/owner & 1 bookkeeper.

REG - 89, 04/29/13
BEC - 81, 08/06/13
FAR - 84, 12/19/13
AUD - 82, 10/05/13

[Mary 2496]

I could help with this since I run a small to mid-sized public accounting firm, but you'd have to give me slightly more in detail. You say they're a small public accounting firm. Do you know if they specialize or will you be working in each area? Some small firms “only” practice tax accounting, and similar situations.

If you have no tax accounting experience and that will be the main activity, I'd expect a starting pay slightly lower than average because you need to build your experience in their main specialty area, is what I'm getting at. Our firm, for instance, handles almost every public accounting matter, from taxes to audits to general accounting services year-round. If we hired someone that didn't know the majority of the areas that we do and I – we had to train them in auditing, taxes, etc., I wouldn't start that person at a rate that I'd start someone at with seven years of experience, with experience in the areas that we specialize in, because that person would require less hands-on time from management.

[Tncincy]

@Mary2496

I am looking to convert from bookkeeping after passing the exam, I m looking for business building tips.

Currently it's me and my receptionist. I am also wondering about audit experience. Is it appropriate to approach another local accounting firm to work with them in audit? I've been in business for a while but have so many questions with so much to learn.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Mary 2496]

I would definitely say yes — a lot (not all) firms wouldn't mind you working with them in certain areas. I would just say that you're looking for professional experience in that area and would inquire about working with them, so that you can further develop your practice. Of course, there's always the chance they'd say no but it doesn't hurt to ask. I would probably allow it after determining the motives for the inquiring firm (making sure all is up to par) and then I would say that it would be no problem.

I am short on time right now but will try and comeback to this question and add more, later.

– Mary

[Tncincy]

Thanks Mary. I am willing to email if this is not the place to discuss this.

It begins with a 75
Been here too long as a cheerleader.....time to pass

It begins with a 75
Been here too long as a cheerleader....ready to pass

[nicole2035]

depends on what you're doing in industry. industry can be very, very boring with little variety depending on the actual position you have and the company itself. You'd be surprised what little work or variety you get even at a publicly traded company. I know that CPA firms can be monkey work too, and boring but at least you get some variety and good networking. It's also not as easy to start out industry then go into CPA firms. I know you said you want to do something more IT geared, but is the company for sure the industry you want to be in? that matters too, currently i'm in healthcare and i'm sick of it (no pun)

[whopper]

@mary. The small cpa firm seems very similar to yours except they do not do audits (only review/compilations). I will mostly be doing taxes but will be assisting with the other accounting tasks as well. I dont have tax experience so is asking $25 starting pay per hr too much?

REG - 89, 04/29/13
BEC - 81, 08/06/13
FAR - 84, 12/19/13
AUD - 82, 10/05/13

[Mary 2496]

To be brutally honest (sorry in advance), even if you're a CPA, I wouldn't pay a CPA $25 at our firm if you're doing mostly taxes and have no solid experience in taxes. Other firms may be different. I would seriously start you at no more than $18 – $20 an hour and it would only be that high because you are a CPA. The main issue is that I can't justify $25 due to the amount of time that you'll spend learning in that position, which compromises productivity. After you become more productive on your own (learn all you need to know about taxes), then I'd raise you to your $25.

Just my opinion.

[whopper]

Thank you for the honest response, I really wasnt sure of a reasonable starting pay to ask. You've been very helpful!

REG - 89, 04/29/13
BEC - 81, 08/06/13
FAR - 84, 12/19/13
AUD - 82, 10/05/13

[Sir Study Alot]

Most large/medium firms start entry level employees out at $50,000, which is about $24 an hour not factoring in OT(with OT maybe as low as $18 hour). I am planning to ask small firms for $53,000 and large/medium firms for $55,000 if they are offering salaries. I would probabIy take as low as $20 hourly, but ideally ask for $23 minimum.

I agree with Mary on her reasoning for starting you out at less and then bumping your wage up after training, however if you don't ask for more then that dialog will never become possible. You will accept $20 an hour and then they will give you a $2 raise after a year, then you will reach $24/25 at year 2. However if you start out at $25 they, like Mary, might say something like “We can't start you out that high but maybe after you get your official license and you go through your initial training”. Then in one year you can go back to them and end up having a better chance of earning $24/25 after one year.

If you come in to the negotiation with what you expect to earn then you may end up with less than they are willing to give you. This will effect your earning potential as long as you work for this company. I think $25 is a great strategic number and will probably earn you their max offer of $23(I pulled this from my backside). Also keep in mind that if you come in asking for a low starting wage you may be interupted as a push over. This may affect every wage increase they offer you. Its better to come in confident of your earning potential and show that you are willing to compromise(these traits are sought after by employers).

Passed all 4 exams in 2014!

[Mary 2496]

@ whopper – you're very welcome. It's all just based on my experience as the CEO of a small – med. sized accounting firm. Best of luck to you!

[fuzyfro89]

Mary, are you willing to share client facing (people working and directly supporting client work) head count? No reason other than curiosity. I'm trying to get an idea of what type of revenue per head there is in a small/medium office.

Whopper:

Hard to answer your question without understanding what you want (or might want) to do with your career. Btw, it's okay to be unsure. Large firms do IT audit and IT assurance, systems implementations, and many other things for large clients, while smaller firms also do those things. In a public Company, you'll be on the clients side, and could do anything from network administration to software development… Again depends on your interests.

Which is better? The one that sounds more interesting to you. It will be easier to work hard at it than if you are dragging your feet the whole way.

[Author]

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