I hailed from a large international accounting firm and like most of my coworkers there I became sick of the long work hours and never ending cycle of stress and emotional guilt tripping that comes with trying to justify going home after just ten or twelve hours. Searching for another job was difficult, as I rarely had a minute that wasn’t filled by working, commuting or sleeping. But the most substantial barrier to quitting my big accounting firm job was the myths that circulated concerning small firms.
Most of my former coworkers whispered to each other about quitting from time to time, but someone always piped up with their own assumptions, or tales they had heard from their friend’s cousin’s ex-boyfriend or some other likekind form of twisted communication. I address just one common myth (of many) here:
I heard that working at a small firm would stunt your professional growth, as smaller revenue clients do not face complex accounting issues. HA! In my experience I have seen there is not much a large revenue client can do that a small revenue one can’t, including going public. They mimic their bigger brothers in both use of derivatives, usual debt/equity hybrids, and VIE’s as well as bring you back to old-school accounting practices which us newer accountants currently coming out of college were taught but told we would “probably never use” , such as valuing perpetual inventory and related LIFO challenges.
There are many other myths such as hours, compensation, limited chance for meaningful promotions, etc. which plague the minds of overworked accountants from the staff to manager level when they think of switching to small firms. Keep in mind during your search for a new position that “Big 4” or even the slightly smaller international accounting firms don’t hold all the challenging work in the accounting field. They (and their overworked staff) just like to think they do, which is why they perpetuate such myths.
I agree completely that “smaller revenue” clients face complex accounting issues. In fact, we consider those types of clients to be our niche – as we like to say, companies that are “small in size, big in issues.” The capital structures of smaller public or private clients are often more complex than their larger brethren; small companies need to come up with creative structures and “kickers” to attract investors, whereas a large public company can float basic debt or equity securities. Revenue recognition and software capitalization are other issues that are frequently encountered in the emerging growth companies we serve.
In a smaller firm, staff get to wrap their arms around all of these issues for a given client, and work directly with the entrepreneur, CEO or CFO on those issues, rather than spending six weeks auditing fixed assets or filling out SOX questionnaires.
When considering a smaller firm, do look for one that has specialized practice areas (so that you won’t become a “jack of all trades, master of none” doing both audits and tax returns) and a formal, quality training program. Partners and managers that have Big Four or national firm experience can also be a plus because some of those firms’ business practices can add value in a smaller firm.
Comment by Jim Caruso — July 17, 2008 @ 6:14 am
Surprised no one has mentioned how accounting firms have cyclical workloads. Smaller firms run out of work quicker than big firms. Every fall the axe falls on staff, suddenly you are more likely to be fired and small firms never admit to being slow; it is all your fault and your reputation suffers.
Comment by Kevin Wells — April 9, 2011 @ 10:47 am
Small firms are small for reason- the reason is that they are poorly managed. I work (for now) in small firm and it is run by backwards thinking old men with coffee stains on their cheap shirts, who work arounD the clock, are very miserable AND THEY DON’T MAKE A LOT OF MONEY.
Comment by Jim — August 13, 2011 @ 7:33 pm
Sadly, Jim, there all too many firms that are exactly in the position you describe. They are following a business model learned 30 years ago which has gone unmodified. Their inability to keep up with the changes demanded by our technology and cultural revolutions have rendered them dinosaurs. But there are many exceptional small firms who are leading in innovation. It’s not the Big 4 or the large regionals. They are steeped in bureaucracy and while change is difficult for them, rapid change is virtually impossible. Over the past few years I’ve noted that ‘change’ is being led by the next generation – the ‘thirty somethings’.
As a Practicing Fellow of the Verasage Institute I have regular opportunity to observe the inner-workings of a variety of young, small firms. There are rock stars out their, Jim. Don’t give up. You undoubtedly have some strong feelings about how it could or should be. Find a path and make a difference. In the meantime check out Verasage.com if you haven’t already, and if you want to talk shoot me an email at markbailey@markbaileyco.com and we’ll find a time.
Comment by Mark Bailey — August 14, 2011 @ 12:58 pm