4 key questions to ask when considering a public accounting career

If you’re considering a career in accounting and finance or want to know more about the profession, specifically public accounting (accounting’s biggest field), asking yourself several questions is a great way to start.

With insights from accounting expert Grensy Håland, CPA, here are four crucial questions to consider.

1. What is a certified public accountant?

Certified Public Accountants (CPAs) are licensed by state societies of CPAs that exist in each of the 50 U.S. states; CPA licensure is granted to a candidate upon passing the Uniform CPA Exam.

Career opportunities for today’s CPAs are extensive. Some modern-day career routes for CPAs to specialize in include:

• Sustainability accountants — Consider this area a cost-benefit analysis approach to accounting. You’ll consider the trade-offs between an organization’s economic growth and the costs associated with environmental consequences such as pollution, waste, and other impacts.
• Forensic accountants are financial detectives — Their responsibilities include asset tracing in fraud and money laundering investigations and being an expert witness in financial crime and civil disputes.
• Accountants within information technology consult on companies’ digital strategies.
  • This can be through asset management, such as verifying software licenses and evaluating risk on certain IT investments.

To stay current with changing technology and regulations, a CPA’s ongoing professional development is mandatory, with a minimum of 40 hours expected yearly.

Accounting and finance professionals will often take many courses throughout their careers called continuing professional education (CPE). “Once the relevant CPA qualifications are acquired, there are other learning opportunities to acquire more specialized knowledge and credentials in specialized areas,” said Grensy.

“As a tax professional, I recently entered the trust and estate area. I searched for the proper credentials in this area and became a registered Trust and Estate Practitioner, a worldwide professional association for professionals advising families across generations. Having these credentials is fundamental for long-term success and credibility.”

2. How much do you earn in public accounting?

CPA salaries rise with experience, but entry-level positions typically pay between $40,000 and $60,000. A U.S. Bureau of Labor report found that the median accountant’s salary in 2021 was $77,250.

Bonus payments are also common, although they vary depending on your employer. A CPA usually commands a higher, six-figure salary when occupying a more senior managerial role, such as a chief financial officer.

In Grensy’s case, she reached a six-figure salary within the first five years of her career.

“I was hired [by EY] during the financial crisis in 2009. That was $49,000 a year. The cost of living has since increased significantly.

Therefore, I would like to guess that staff-level salaries now hover around $60–65,000. I left for Bermuda with PwC and jumped to 88K in year 4. By year 5, I was a manager in the 100K range.”

3. Is an internship the best way to enter the accounting profession?

Grensy used every opportunity to network and build upon her initial interest in the profession.

“Attending professional conferences allowed me to understand different practice areas, network and gather knowledge as I started my career journey,” she said.

Grensy also recommends online networking opportunities, particularly through LinkedIn.

“LinkedIn was a major resource, though more now than when I was job-seeking. It can assist young professionals in gaining visibility among HR departments, recruiters, and top executives.”

ThisWayToCPA provides several online networking events for aspiring accounting and finance professionals.

4. Should I work for a big firm or a small firm?

Big firms in the accounting and finance profession tend to be associated with the Big 4: Deloitte, Ernst & Young, KPMG and PwC.

Small firms offer personalized experiences for their clients and employees. Working with clients who are also your neighbors may provide a more welcoming, nurturing environment as you begin your career.

At a small company, you’ll probably also take on more responsibility and have more direct access to partners and senior staff who can guide you and maybe even pay you more than you would receive at a larger firm.

Yet this doesn’t always last. “Some smaller firms give you a bit more to start [just to grab you], but then your salary stays flat in later years,” Grensy warned. She sees the meritocratic, long-term career value of working at a more prominent firm.

“Salary is driven by performance in the Big 4. The increases are usually 10–12% in a good year. While the first five years is a time to prove yourself and work hard for less than the senior partners or managers, there is also more earning potential at a large accounting firm than at a smaller one.”

Grensy explains that the deferred level of gratification — or in an accountant’s case, compensation — on offer at the more prominent firms is usually a bigger plus point for younger professionals.

“I was told once that the longer you work in a Big 4 firm after college, the more your market value increases when looking for a less hectic job environment. I fully experienced this. Think about this as deferred compensation.”

Though the initial years may be more about proving your worth than earning your worth in a bigger firm, the opportunity to work with the best and brightest can provide a solid foundation for your later career.

Of course, the best way to find out which environment is right for you is to schedule interviews at various small and big firms and see where your personal values and ambitions align.

Start your accounting and finance journey.

Accounting is an excellent foundation for whatever career you ultimately choose. Countless commercial titans, including Nike founder Phil Knight, were once CPAs.

ThisWayToCPA also offers tailored, free-of-charge advice to young people interested in joining the profession. Email academics@aicpa.org, and one of our professional volunteers will assist you.

In the meantime, explore our inspiring CPA profiles, which feature more of Grensy’s success story.