This article is the first of a series that will explore the many aspects of making a successful transition from public accounting to other accounting and finance careers, particularly careers in business and industry.
Employment Trends in the Accounting Profession
A persistent employment trend in the accounting profession is the shift of CPAs and other accounting professionals away from public practice. As of August 2003, regular members of the American Institute of CPAs who were actively employed in public accounting represented less than 40% of all active regular members [see http://www.aicpa.org/members/memstats.htm]. This percentage figure has been declining over time, and has been mirrored in state society membership figures as well.
The remaining active, regular AICPA members work in Industry, Consulting, Education, Government, Law, and various areas other than public accounting. In particular, "Members in Industry" currently represent over 44% of all active, regular AICPA members, clearly outnumbering their colleagues in public accounting. Other statistics point to accounting graduates spending less time in public accounting, moving quickly -- and sometimes immediately -- from college into business and industry.
What's the Attraction?
One of the driving forces behind the trend is that qualified accounting professionals can often advance further in their careers -- and faster -- if they "switch horses" mid-career. CPAs regularly find that becoming a corporate CFO is far more attainable -- and desirable -- than becoming a partner in a public firm. And somewhat ironically, accountants with public experience typically enter the CFO track far sooner than their classmates who shunned public practice.
But there are additional, personal reasons why public accountants switch. Public accounting is a time-intensive career choice, and many professionals today just aren't as willing to sacrifice so much of their time for their careers. Travel demands, "busy season", and other aspects of public accounting work eventually represent too much sacrifice for the accountant who is trying to have a life outside of his/her career.
Help in Making the Transition
Regardless of your motivations for considering a career outside of public accounting, this series will guide you in making a successful transition to business and industry. Upcoming articles will focus on answering the following questions:
- What career opportunities are available for accounting professionals outside of public accounting?
- How do the knowledge, skills, abilities, and tools required for success in business and industry differ from those required for success in public practice?
- What resources are available to transitioning accountants through the professional associations that have traditionally served them, such as the AICPA and state CPA societies?
- What resources are available through other professional associations -- such as the Institute of Management Accountants (IMA) -- to foster successful transitions?
- What additional certifications -- such as CMA, CFM, CIA, etc. -- are available to complement the CPA designation and enhance your career prospects?
- What Continuing Professional Education programs are most helpful for accounting and finance professionals in business and industry and who provides them?
- What advanced degrees might you consider pursuing to further enhance your career prospects?
Watch for the articles in this space every other week. And please feel free to share your experiences with me via my contact information below.
Copyright 2003 Leveraged Logic, All Rights Reserved
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