What You Should Learn Before Moving into Public Accounting

The good news is that it's possible to boost your salary when you move between corporate accounting and public accounting. The bad news is that without the right credentials and experience, this can be a lot harder than you might think. Many people have to deal with a reduction in pay when they become public accountants, since those without any previous experience in the area have to start out as entry level. Even if you have a lot of professional knowledge, the lack of technical experience can be a real problem.

Now, your experience isn't going to count for nothing. Accountants from the corporate world who don't have a CPA but have some good experience are going to make more than accountants who just got out of school. However, the rates aren't competitive with people who have a CPA and some public accounting experience to throw in with their corporate work history. The fact of the matter is that credentials make a difference.

Fortunately for those who don't currently have a CPA, but really want the kind of advantages that come with one, there are options. If you already have the education required for the CPA in your particular state, you can find out if sitting the exam before you have the experience is an option. Once you pass that exam, your chances of convincing a public accounting firm that you're a good choice go way up. Remember - they'll be investing in your training and education in the field, so they want to make sure you're in it for the long haul.

That means they'd like to know why you want to go into public accounting. After all, many people think of it as a step sideways, or even a step backwards, not a climb up the ladder. Things they'd like to hear include a realization of what a background in public accounting has to offer you, boredom with your old corporate position (it happens surprisingly often), an interest in more diverse clients or a desire to specialize in a field that requires this shift. Don't let them hear that you got laid off and you thought you'd work in public accounting until a better corporate job comes along!

Remember - if you don't currently have a CPA or other public accounting experience, and you don't have the education required to earn your CPA right away, you might want to think hard before you try making the switch. It can be really rewarding, but there are some downsides. If you're thinking about moving from corporate to public accounting, you'll need to expect to enter at the salary that others in the firm are receiving.

This means that if you're currently working at one lower than made by others in your prospective firm, you'll be looking at a pay raise. But if your old job rewarded you handsomely, don't expect your new one to match your salary - you don't have the experience to justify it. Of course, if you have some public accounting history, and you're interested in coming back, capitalize on that - you could improve things a great deal.

The good news is that in a tight hiring market, even famous firms are willing to hire accountants in the middle of their careers who want to move to a public arena. Some of their best hires have been people who want to change their whole focus, and with the right amount of passion, you can get an impressive job. Layoffs can mean that a job in the public field is a better choice, as more financial companies get rid of employees to save money. The hours are harder in the busy season, and you have to prove yourself in public accounting, but if you have your CPA, things get a lot better.

Of course, there's more to it than just salary. People who've worked on both sides of the public/corporate accounting divide actually often keep moving back and forth. The hours aren't as difficult for corporate accountants in many cases, particularly compared to tax season in public accounting, but it can get boring. There's a balance between too much stress and downright boredom, and you may end up moving back and forth between extremes over the course of your life. Public accounting can be a great option for people who want something different or want to change fields after a career in corporate accounting, but it's important to look before you leap.