Accounting firms versus Industry accounting

Accountants often come to a crossroads during their career and consider whether to move to industry or stay in the profession. In other words, should I work as an Accountant in a non-accounting business or within a public practice accounting firm?

There are clear pro’s and con’s on ‘industry’ versus the accounting profession, which we have discussed below:

Pros of industry accounting:

• It generally pays more at Accountant level than most accounting firms.
• It can be an easier job with less pressure. Not always, but often can be.
• You could work in an industry that you have a passion for.

Pros of accounting firms:

• With a more client-facing role, you will meet new people all the time, not just the same few stakeholders every day/month/year.
• You are able to directly help people’s livelihoods and get fulfilment from being an important, trusted person in their lives. The more experienced Accountants become, the more this seems to become a motivator.
• The work is generally more exciting and less monotonous or repetitive, you can often find yourself doing exactly the same tasks every month in industry. Every day is different in public practice.
• If your Manager doesn’t plan to leave their job in industry, you could get stuck in your role indefinitely with no chance to progress or develop.
• Partners of accounting firms have no ceiling on their income, while CFO salaries plateau. This can become a significant difference. While this may not affect you now, this could mean tens, or even hundreds of thousands of dollars per year for potentially two decades of your life.

What I hear from people who have already moved to industry from public practice:

Pros: Some Accountants are happy with their choice as they find it less stressful.

Cons: Others find it boring and feel that they will not develop through the rest of their career. Most people can move back to accounting firms but not always at the salary they would want.

What are your options when contemplating a move?

• Stay where you are at your practice – Take the initiative to speak with a Partner to drive more fulfilment in your role.
• Go to industry – This comes with the opportunities and challenges mentioned above.
• Try a different accounting firm – You have a third option. Don’t leave public practice because you don’t like your current firm/boss. Before giving up on the profession, try a different accounting firm that offers you what you aren’t getting now. There are so many different types of accounting firms, there will be one you like. If not, you can always try industry knowing that you are making a more educated decision.

If you are moving to industry no matter what, have a think about the following:

• If you are struggling to make it happen, you could try to focus more of your time in your accounting firm on clients from the particular industry you would want to eventually move to. This will give you relevant insights into what you could be exposed to in the future.
• Work closer with your clients at an accounting firm in an outsourced CFO model. There are already several firms who have embraced this as a service line they want to focus on and grow in the coming years. This will give you direct experience in the job you are considering for your future.

If you do attempt industry and realise it is not what you would want to do for the rest of your career, my advice is to get back into an accounting firm as quickly as possible. If you miss a few years of staying up-to-date with tax, you will then be competing with other candidates who have not missed those years. It gets increasingly more difficult to get the salary you are seeking, the longer you are out. You will also have to explain in future interviews why you chose to leave public practice and convince the interviewer that you genuinely want to come back.

Conclusion – Based on the above benefits of each option, my opinion is that:

• In the short-term, industry can be attractive, especially for those who want an easier option. I am not saying it is a walk in the park, because it certainly is not, but it usually is more repetitive.
• In the long-term, the work at accounting firms tends to be more fulfilling, exciting and pays more at leadership levels. People tend to be more proud of what they achieve.

The right decision for you depends on what you want from your career and what stage of your career you are at. Before such an important decision for your career, it is worth discussing your personal situation and ambitions with a recruiter you trust.

If you’d like to speak about your options in more detail, please contact us on 03 9946 7300 or professionalservices@lawsondelaney.com.au