Big 4 vs. Regional Accounting Firms
So I had a long chat with one of my favorite professors today about what kind of firm I should be looking for. I didn’t tell her that I didn’t get an offer from my internship, but I told her that I felt like I didn’t fit in at my internship and I was considering looking at smaller, regional accounting firms.
Her opinion was that if one Big 4 wasn’t the right fit for me, there was still a good chance that I would like one of the others. I had been thinking that they might have some differences in culture, but would otherwise be about the same to work for. What I got from our conversation is that there are differences, and that there are also differences within any one of the big firms depending on which part of the country they’re located in.
The main selling point of Big 4 seems to be the “opportunities” you get from them. I think that people are referring to opportunities to move to a good job when they say “opportunity,” and are not necessarily referring to opportunities within the firm.
Then again, Big 4 does offer opportunities to re-locate while still working for the same company. That can make life easier if your spouse has to move for work, as you can hope for a transfer, rather than having to quit and find a new job entirely. Also, you can move to a different job within the firm, such as from audit to tax or forensics if you aren’t happy with your job. I don’t think a smaller firm could be so flexible.
Another good point that my professor made was that since there are fewer people at a small firm, then it could be even harder to fit in because there would be less diversity.
I’m not sure what to conclude here. I think a smaller firm could be nicer, but you would need to be pretty clear on what you want. For example, I know there is at least one regional firm that does a lot of forensic accounting, so if you knew that’s what you wanted to focus on, you could go for a job there.
I think I have to really define what I’m looking for before I fling myself into the job search again, so that I can explain to a potential employer exactly why it is I would love to work for their firm.
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Definitely both categories of opportunities, though statistically, the “job outside afterwards” is probably what’s more common for people.
I worked for a 75+ person firm in Birmingham for over five years. I left and went to work for one of their clients for a little while and then came back during a seven year span. I didn’t care for my first boss, and when I decided I wanted back in, I told him I couldn’t work for him. He knew of another partner in the building who needed someone, and it was a match made in heaven as far as work goes.
I haven’t worked in Big 4, but the people I know who have, have all left to do something else. They used it as a stepping stone. If you know you don’t want to do public accounting forever, it’s a good place to start. But if you’ve caught the public accounting bug (I have it, I tried to deny it, but I CAN’T!)starting out at a Big 4 and then moving to a smaller firm will still be ok. Or if you start out at a smaller firm you have more time to establish yourself as a go to person. And the faster you do that, the faster you move up.
You’ll have more client contact and create relationships faster in a smaller firm. You’ll get to travel in a Big 4 firm if you pick auditing. Big four will also give you a wider range of accounting fields to choose from. A smaller firm will give you a diverse background in several industries unless they are extremely specialized.
You just have to decide if you want to sacrifice your outside life for the first couple of years, because most Big 4 firms will work you until you can’t take anymore. Not that a smaller firm won’t work you – they will, but it might be a more relaxed environment. Talk to people at networking events – ASWA and the other women accountants societies all have student memberships. See what their quality of life is like during tax season and what the firm culture is, and know that if you land somewhere and don’t care for it, you can move in a few years, having picked up some valuable knowledge from your coworkers and clients. Use that to get you in the door somewhere else.
From Kelkel:
Thank you for the informative comment! I will try to keep these points in mind, and I will definitely follow your advice about talking to people at more networking events, and I will try to see if I can get in touch with ASWA in this area.
I’m not afraid of long hours, but if I’m going to devote so much of my life to work, I want it to be at the right company!
I worked at a big 4 for many years, and now at a large regional. At the end of the day it about what fits you! At regional firms, you are more involved, work closer with key decision makers, and feel more connected to the clients business. Entrepreneurial sprit is more encouraged and rewarded.
From Kelkel:
Thank you for your comment! It is nice to hear about how the two different settings feel like to work in!
I don’t work in accounting but within my own field I’ve worked for several of the large firms. There is definitely a different corporate culture from one to the next, though all of them tend to treat you like a number not a person. Unfortunately you don’t tend to find these things out until you’ve worked there for awhile. I worked one place that expected you to give up your lunches for work meetings at least 3 days a week, no thanks. When I had a chance I left. There are benefits to a large company, like the ability to transfer to other offices or locations. Good luck!
From Kel:
Thanks for the comment, although I guess it’s not surprising that they all treat you like a number, rather than a person. I think to get that these days I’d have to move to an entirely different country with a different business culture!
Depending on the office, I think you can be treated like a person at any public accounting firm, big or small. I believe most college graduates want to work at large companies because they think they are the “best,” or at least well known (i.e., popular). So if you can make it there, you can make it anywhere. I know I thought that … for me being in HR, I was thinking Big 3 as in GM, Ford, or Chrysler.
Truth be told, there are many firms (and companies) where you can make a great living and get some top notch experience. Here’s the shocker – they don’t have to start with the word “Big.”
In relation to public accounting you can get the same kinds of experience at regional or medium size firms (and some small ones) as you do a Big 4. You want to learn from a technical expert? Chances are a that firm has a former Big 4 principal working there. You want some international experience? I bet that firm has an international affiliation where you could do a “tour” at a sister firm in another country.
Don’t get me wrong. “Big” firms offer great opportunities to grow within their firm, too. But it is not “settling” if you don’t get a job there. Think of your own college. Did you graduate from an Ivy school? Big Ten? Is your education less prestigious just because you went to a mid-tier school or smaller college?
Bottom line – it all comes down to you. If you are good and develop yourself to be a valuable resource, you will be successful anywhere. Attitude is also important.
My advice: Go big then downsize. Experience with a Big 4 firm is recognizable anywhere in the world. The training is unparalleled, and the perks are many starting out e.g. $5k bonus on passing the CPA on the first round. This is a no-brainer. Go for Big 4. You won’t regret it.
I guess this is late for me to post, but when I was going through internship recruiting this spring, I was a lot more attracted to a middle market firm (larger than just regional, but not large enough to be like the GT, McGladrey, BDO, etc.,)…so, even though I knew a lot of friends and professors who pushed solely for Big 4 and looked at mid mkt and regional as a “unfortunate second option”…for me, I was wondering what the big deal was.
In the end, I decided to go Big 4 (based on what many here and elsewhere have said — go big first then downsize)…but I don’t want to feel like I’m betraying values. I’m not in things just to get a few years of experience on the resume and then to skip out (as a plan). Rather, I’m willing to stay in things for the long haul if things go well, but if not, I will be *happy* to look outside of Big 4. It does not in any way seem like a downgrade to me.
I have been in public accounting for six years with the last two years as a manager at Grant Thornton. I started my career at BDO and then my wife and I decided to relocate where BDO did not have an office and so I went over to Grant Thornton. I am now moving to a large local firm that offers greater partnership opportunities and where you are rewarded for growing the practice. I don’t regret not going to the big 4 and I don’t regret being at BDO or Grant Thornton. I think both BDO and Grant Thornton offer very similar experiences to working at the Big 4 especially if you are in a smaller metropolitan area, because they are serving the same type of clients. I loved the culture at Grant Thornton; however, I recognize it does vary from office to office at a large firm.
Right out of college is hard to know what you want to do long-term, unless your one of the lucky few who know exactly what they want to do. My experience with public accounting is it is primarily made up of very smart, motivated people, who are unsure what to do with the rest of their lives. Eventually they figure out it and stay in public accounting or move on.
Unless you really hate public accounting or come across an opportunity to good to pass up I think it is wise to stay and make manager. I have found that I enjoy public accounting far more at the manager level. The dynamic of your job really changes and you start a role in running the office your located in and growing the practice.
In the end your not going to be hurt in your career by not going to a Big 4. They do offer great name recognition, which is primarily valuable if your plan is to get in and get out within 3 to 7 years. The real secret to great opportunities is networking…I would start now to build your network. If you know the right people you’ll have opportunities. I hope this was somewhat helpful.
Klint: Thank you for sharing your thoughts! Your insights are very helpful, and I’m sure they could help some readers with their decisions.
Many disgruntled big 4 employees are surfacing due to the recent economic situation and internal environmental and social pressure faced by each and every employee. Consider long and hard before pursuing a career with any accounting firm.
Talk to people at networking events – ASWA and the other women accountants societies all have student memberships. See what their quality of life is like during tax season and what the firm culture is, and know that if you land somewhere and don’t care for it, you can move in a few years, having picked up some valuable knowledge from your coworkers and clients. Use that to get you in the door somewhere else.