Considering a career change from public accounting to an industry accounting role? You aren’t alone. According to an Illinois CPA Society survey, 42% of public CPA firms are reporting rising turnover rates. Public accounting opportunities often overshadow industry accounting ones, especially for accountants early in their careers. However, industry accounting offers unique benefits that you may not find in public accounting. Determining if industry accounting is the best fit for you requires an understanding of the job roles as well as the opportunities and challenges of making a career change.
Understanding Industry Accounting Roles
When you think of accounting positions, roles as auditors or tax preparers with the Big Four firms may immediately come to mind. Public accounting, while often stressful during busy seasons with long hours and a difficult work/life balance, offers CPAs a fulfilling career path with opportunities to serve multiple clients across various industries. However, it’s not the only career path open to accountants. Some may find the alternative of working in an industry setting more suitable for their lives and interests.
Industry accounting positions are internal roles within companies that are not accounting firms. Professionals work within the accounting department of companies that range in size from start-ups to large corporations and vary in industries like law, engineering, or healthcare. Examples of industry accounting roles include managerial accountants, internal auditors, or financial accountants.
Typical job responsibilities for industry accountants include preparing financial statements, creating and managing budgets, and providing the company with financial guidance so that company leadership can make strategic decisions. To perform these tasks well, industry accountants require knowledge beyond their specialized accounting skills. They must have a comprehensive understanding of the company's industry and how the company operates.
Commonly, people consider industry accounting roles better for work/life balance as there isn't the stress of meeting client deadlines required in public accounting. However, this can all vary depending on the culture and expectations of the company you work for.
Opportunities in Industry Accounting
It's natural for any employee to want their company to perform well since, in theory, the better the company does, the more the individual can earn. Industry accounting roles are no different in this regard. However, because accountants help manage the company's financials, they have a unique position of holding some influence over decisions that can affect how the company performs. Industry accountants are responsible for budgeting and forecasting and can guide cost-saving decisions or revenue growth. This kind of role can bring a sense of empowerment and purpose to a career that CPAs may find lacking in their public accounting positions.
A private accounting position also presents an opportunity to choose the industry you want to work in and the kind of company you want to work for. In public accounting roles, you are more or less assigned to the teams and clients for whom you perform services. Job opportunities in industries that align with your hobbies can present unique opportunities to spend more time doing something that interests you. A sports fan may consider a role working for the accounting department of a media broadcast company, or someone who loves to read may look for an accounting role with a publishing company.
Challenges of Transitioning to Industry Accounting
Despite the enticing opportunities industry accounting roles offer, there are some challenges accountants must also consider. Most of the time, you're working on a small team where there may be only one or two other accountants. While this offers you the opportunity to take on more responsibility, it can be difficult at first to work without the support of a group of colleagues in the same boat as you. Transitioning from a large team in public accounting to one more isolating may take some time to get used to and can be especially difficult for those early in their accounting career.
Career progression can also be a problem. Accounting roles within companies can be limited, and there may not be space for promotions. You may stay in the same role for longer periods or even your entire career with the company. This is an obvious difference from public accounting, where your career path is basically laid out for you from the start—progressively working your way up the ladder from associate to partner over a career.
How to Succeed in Industry Accounting
CPAs may find that while there are accounting skills that will transfer from their public roles to an industry role, there are some skills they may need to develop more to find success in industry accounting. The learning curve will require experience in the new role and relearning skills you may not have seen since school. Taking the time to refresh your memory of these skills, asking questions of your new colleagues, and not being afraid to admit you don't know something will help you find success.
Beyond accounting skills, professionals must also learn how to communicate and collaborate with company employees working in other departments. Typically, a portion of your responsibilities will require insight and input from other company departments. You will need to consult with these department leaders to learn about their costs and how they generate revenue for the company. Understanding how to communicate with non-financial professionals to garner the data you need is crucial to finding success in industry accounting.
Is Industry Accounting Right for You?
Is industry accounting right for you? This is a question only you can answer. If you are unhappy, stressed, or just looking for a change from your public accounting position, it may be a sign to consider changing careers to an industry role. Before making any changes, though, explore the job opportunities available. Review job opening descriptions, noting the qualifications and responsibilities of the roles to see if they could be a good fit for you.
Reflecting on what you want from your accounting career and deciding if making the switch from public to private can be difficult. Consider the opportunities an industry role can present and weigh those against the challenges you may face in a new position.