[cyber]

Hi all, long time lurker. Last month I accepted an auditor role at a small cpa firm that caters to non profits and small government audits. I’ve recently become worried that I may be pigeonholed in this sector, and frankly my goal has been to transition to a large national firm or big 4 in a for profit audit role. If I stay at this firm for a year and complete the CPA exams will I have trouble making such a transition? Thanks

[PianoCPA]

Sounds like you're at a firm similar to mine. We've had a few individuals who get their CPA license and about two to three years of experience, and then head out to large regional firms, working with for-profits. From what I observe, with 2-3 years of experience and the CPA, you'll be able to leverage your current experience to get into a larger firm. Chances are, though, you'll fall into a staff position, but progress a bit quicker than the recent college grads. I suspect a large firm will like that you're devoting time to work, not studying for the CPA, and you'll probably be able to move up a bit faster.

[cyber]

Thanks man, I’m perfectly fine with having to start over again, I think it’s worth it in the end.

Adding to that, how different is an audit for a GASB client versus a FASB client. Is an audit simply an audit, or is it a wildly different process. I imagine there are some differences, like I doubt you’ll be testing time sheets, but the the overall idea of testing is generally the same but the financials just have different titles, no?

[Nate]

I too started with a non-profit firm, no governmental audits though. I'd say if you can, ask to stick primarily with not for profit, cause not for profit is a lot more like the for profit industry rather than the government. IF you are doing municipal audits, you do have the risk of being pigeonholed in that sector, but not for profit is a lot more translatable and most firms of all sizes usually have some not for profit clients so they always like to have employees with that knowledge and experience.

AUD: 54 (10/31/15); 83 (12/02/17)
BEC: 70 (01/31/16); 90 (07/02/17)
FAR: 73 (10/03/15); 88 (02/17/18)
REG: 83 (06/09/18)
AICPA Ethics: 91 (06/28/18)
Licensed: 08/16/18

[cyber]

Will I really be pigeonholed after just 1 year though?

[Nate]

I guess after 1 year you wouldn't be, and there is some good experience that I think you could get from municipal audits, such as testing internal controls. For the most part those should be similar to testing internal controls for a business. So 1 year won't really pigeonhole you, but to be completely honest, I don't think it'd be as valuable as the not for profit experience, so I would try to focus on that more if possible. But, seems like you're approaching this the right way and realizing any auditing experience for 1 year is definitely better than no auditing experience for 1 year, just thought I'd share that the not for profit experience is more translatable, so if possible, I would say focus on that if you don't want to risk getting pigeonholed.

AUD: 54 (10/31/15); 83 (12/02/17)
BEC: 70 (01/31/16); 90 (07/02/17)
FAR: 73 (10/03/15); 88 (02/17/18)
REG: 83 (06/09/18)
AICPA Ethics: 91 (06/28/18)
Licensed: 08/16/18

[cyber]

Thanks Nate.

I also just found out from a co worker the majority of the work in the fall and winter months is not for profit, so I’ll be sure to highlight that in my resume when the time comes.

Any other opinions are welcome!

[oisbuddy]

I have been doing governmental and NFP auditing for 10 years. I now manage 40 of these each year (yes, 40). I have also worked in the for profit sector, and I can say hands down NFPs and governments are the way to go even if you are stuck doing it for the rest of your life. A) this sector most often requires very little out of town travel (good for ppl with families) B) for profits are so stressful, whether it be making ratios, meeting debt covenants, or paying less taxes; their is so much client fightback on everything to help meet all of these. C) NFPs are typically smaller and nonstressful D) Governments are relaxed too, although bigger E) NFP and governmental auditing helps alot on the FAR exam and most importantly F) I have had about 5 coworkers that have gone on to take finance director rolls in Illinois governments, and they love their current jobs with a pension, working 9-5 and less stress. So there is alot of horizontal and vertical movement possible in the sector.

Only downside to both is that the accounting is so much different, but its fun when you understand it completely.

AUD - 81
BEC - 77
FAR - 81
REG - 81

He gone...

[cyber]

I appreciate your post and advice. You are right about the stress. The people who work at my firm are happy and make good money once they put in their time (our senior managers are in their early to mid 30sis making 100k+), which is great. But it is restricting, and as you said the Accounting is different. I don’t want to wake up one day hating what I do and have no way out into the industry, which is why my goal is to go for profit in a year. Thank you for your post and insight though, it’s appreciated!

[Author]

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