Transitioning from public accounting to finance..advice please

Hi all, I've been checking WSO out for a couple of years now and have seen questions like mine asked before, but I wanted to know if I could get any further clarification or advice.

I graduated from college last year with my bachelors degree in accounting from a top 50 school in the northeast (I guess you could call it a lower end semi target for ONLY back office positions) I knew that jobs in banking would be pretty much near impossible to come by if I went to the university that I went to and majored in finance, so I went the "safer" route and chose accounting. Now I work in New York City at a mid size public accounting firm. I worked in audit and am in tax now. (wanted to try both out even though I realize tax isn;t the route to go now) I just finished my first year and really don't desire to be in public accounting any longer than I have to be. (I'm also studying for the CPA)

I want to break into banking/hf/pe/vc/arbitrage I know I know, so does everyone else, but please bear with me.

In the firm I work at, all of my clients are hedge funds so I have gotten some type of exposure to how they operate etc. obviously this means nothing but it's the only positive thing I have going for me resume wise if at all.

How long should I stick it out? Should I stay 3-4 years and leave? I have ZERO desire to stay till Manager, (I mean literally I'm not doing that) If so, where do I leave to? a Fortune 500 company? Or should I try to switch into my firms TAS group which is as closest to banking as you can get while in public accounting? (But what if I'm not able to switch into the group, then what?)

In terms of F500, I really don't know that I would want to transition there (or anywhere in private industry) because it's not really the environment, it's that I don't enjoy accounting at all, no matter where it would be.

I like finance and the capital markets, and always have since I was a kid. I've always been interested in mergers and acquisitions. Unfortunately I realize that interest isn't experience and thus means nothing at all.

I was planning on staying 3-4 years and getting my MBA. The only thing here is though, that unless i go to an MBA business schools">M7 school program, I will still probably have no shot of breaking in to the bulge brackets, pe, vc, or hf, etc.

Does anyone have any advice or game plan in terms of options?

I would really appreciate it.

 

I'll respond as someone with a similar background who worked at a regional accounting firm (although in advisory) as my first job before transitioning recently to a junior research position at an IM firm. First off, figure out what you want to do. Understand that HF, IB, PE, VC are completely different paths that require different (although sometimes similar) skill sets.

You say that you're interested in mergers and acquisitions and you're right that interest isn't experience. But, if you really are passionate about it, create something concrete (i.e. try modeling out past deals, read and understand the current deal environment). While I was stuck at my account job, I spent time after work and during weekends on creating investment pitches that eventually were sent out to contacts that I made. This especially helped when I finally received interviews and could speak intelligently about companies that I was pitching.

And depending on how far along you are on the CPA exams, you might want to finish them up. I have mine, but it has become largely a sunken cost and is inactive now. However, it was helpful during interviewing as it's another credential.

Finally, if you truly despise accounting, you most likely won't like finance either. Finance positions do not use debits and credits, but accounting is still the basis of finance.

I would suggest you figure out what you want and delve deeper into it. Network with people in the industry. Be prepared to ask intelligent questions rather than just the bare basics. Start applying to positions that interest you. I'm not going to sugarcoat it...you have a long road ahead of yourself. I spent 6 months heavily job searching (driving/flying to major cities to network, applying online, contacting recruiters, etc.) before finding my current position and I consider myself lucky.

 

I'm going to post some things that might sound harsh, but hopefully it will help you out in the long run.

  1. Being at a non Big 4 accounting firm, from a non-target school is going to make your chances of breaking into IB/PE/VC near 0%. Shit theres tons of semi target/target school, Big 4 candidates trying to squeeze in already and most of them still fail.

  2. Having hedge funds as your client does not really affect anything. Are you learning modeling/relevant skills for that HF job? No. The only thing that being the auditor for a HF does is set you up for a comfy BO position at said HF. After a few years auditing hedge funds, you get very familiar with the way they account for things, so most accountants become accounting managers at these HFs.(however even this is mostly dominated by B4 managers+)

As to your options, to be honest I think your best bet is an MBA. That is the safest and most viable choice, but in case you didn't want to drown in a debt there is another way that is a lot more difficult to break in. But shit, it might give you a chance. Become an "industry expert" in some sort of field. So by that, I mean you audit all healthcare clients. This way during your interviews you can say you developed substantial knowledge on how a healthcare firm works, that couple with your CPA gives you a healthy understanding of their financials and the way the industry operates. If you can spin this story well, you might just get extremely lucky and be able to break in. However, chances here are still extremely slim so best of luck.

 
Best Response

BackOfficeLove pretty much covered it. From where you are, you have a few options to move up and out of tax accounting.

1) Get into a F500 position that deals with the budgeting, planning, and strategic aspects, rather than journal entries and reporting. Stay for awhile, learn the business, and transfer to corporate strategy or development.

2) Transfer within your firm or another accounting firm to some sort of consulting/advisory work.

3) Get an MBA. Even if you can't get an M7 MBA, a top 25 program could greatly broaden your options.

Any of these options will be much easier from audit than from tax, so my first step would be to get back into audit. None of this will necessary translate into IB/HF/VC/PE, but it will be moving up. You would have a pretty good shot at tier 2 consulting or something along those lines. From that point, you can keep moving up.

 

I thank you guys for the advice (including the harsh criticisms) I really appreciate the honesty!

The reality is, I just switched into tax so I'm going to have to stay there for at least 1 year before asking to be put into transaction advisory services. (If I got into TAS depending on my performance in tax, I would like to stay there for 2 years and gain experience)

From there on out, I'd try to bust my ass and get as high of a GMAT score as possible and get into a top 25 MBA program.

Honestly, I think that the CPA coupled with 4 years of work experience including 2 years in a transaction advisory services role (coupled with doing deals with HF clients) would help me break in (post potential top 25 MBA).

Maybe I won't get into a BB (or maybe yes who really knows the future) but I think with this plan, I could get some middle market and boutique firm interest and work up from there.

I hope you agree with that view.

This is kind of out there, but I have a few connections at UBS through my family including one really high up connection, but I didn't mention them because I don't want to rely on that and put all my hope into using them to get me to where I want to go. I guess they could always remain a solid back up plan in case my strategy doesn't work out the way I hope it does.

 

Try getting into the advisory/financial services practices in your firm. Problem with some of these accounting firms is they try to keep you within audit/tax as much as possible, so maybe try and get into a Big-4 firm into their financial services or instruments/valuations groups. I think thats your best bet right now. After a few years doing FS/Instruments/Valuations at a big-4, you can try to break into a BB and it'll be much easier. Study for the CFA while you're at the Big4.

 

I don't think an MBA is worth the time. In my experiences, after your first job out of college, no one really cares what degrees you have from which school, the licenses and credentials hold much more weight.

 
FastLaneCPA:

I don't think an MBA is worth the time. In my experiences, after your first job out of college, no one really cares what degrees you have from which school, the licenses and credentials hold much more weight.

This is true within public accounting - the MBA is only marginally beneficial, whereas the CPA is absolutely necessary. However, for the OP to be able to make a switch from a non-Big 4 accounting firm to high finance, an MBA is his best shot.

 
808:
FastLaneCPA:

I don't think an MBA is worth the time. In my experiences, after your first job out of college, no one really cares what degrees you have from which school, the licenses and credentials hold much more weight.

This is true within public accounting - the MBA is only marginally beneficial, whereas the CPA is absolutely necessary. However, for the OP to be able to make a switch from a non-Big 4 accounting firm to high finance, an MBA is his best shot.

Wouldn't studying for and passing CFA Exams be a better shot? I've always looked at credentials/licenses being the "standardized" versions of any degrees you can get in college... most of the time you'll end up having to get the credential anyways - so why bother going back to school and losing the work-experience opportunity?

 

To understand the strategic purpose of different degrees/certifications, I would recommend doing some searches on WSO - these topics have been heavily discussed. The CPA won't be much help to an accountant looking to move into IB/HF/PE/VC/MBB; it will only be useful insofar as it shows that you probably know your way around the financial statements. A CFA may be useful in redefining yourself as a finance professional, rather than an accountant, but in that respect it is inferior by far to the MBA. The main purposes of an MBA are to fulfill an employer requirement, or to hit a one-time career reset button. That reset button is what the OP needs if he wants to move up quickly.

 

I'm planning on getting my MBA 100%. I just hope it ends up being a top 25 program.

I have requested and received work in our transaction advisory services practice today and tomorrow as well. It's actually much more exciting than audit or tax.

I hope this will help me transition there for good after one year in tax.

Again, I appreciate all of the advice.

Do you guys recommend I get my resume redone for MBA purposes in the future to make it look more finance and less accounting?

How good are the resume review guys here at WSO from your opinions?

Thanks!

 

OP, if you like M&A and whatnot, why not just kick butt in audit/advisory (if you can make it into advisory) and then get into a corporate development/strategic planning role post MBA? You can still get a job involving industry analysis/financial modeling in the corporate world post-audit with less stressful hours too potentially (the compensation is likely going to be lower, but that's expected given the lesser hours relative to sell-side IB).

I would try to get to a position where I'm doing that and then use that role to get into a Top 15 MBA/ After doing that, then you can start worrying about IB and the other roles you mentioned and breaking into those. Don't give up on IB, but realize that it's going to be tough currently given the market conditions, etc. It's tough enough for kids at elite schools to break in through OCR, but it'll be even harder for someone with your current background pre-MBA. Who knows, you may even like the corporate world and stay at your company.

Just a thought.

 

Don't have my CPA. I stopped pursuing it once I realized I didn't want to continue with accounting. My logic is it wouldn't hurt if I had it but it's not going to be the deciding factor. I think I could focus my efforts on something more beneficial. What do you think?

 

You don't need to get an MBA just yet. Your gpa is fine. The fact you worked for one of the Big 4 is fine. You aren't from a target, again, no big deal. You need to NETWORK and tell a strong story. Emphasize how you know the nuances of accounting and are intimately familiar with industry A and you think companies X, Y, and Z are going to do great things in the next 12 months,etc.

Is ER your endgame or are you concerned with your exit ops? The CFA could be helpful to communicate your interest and round out some of your knowledge. I have noticed a lot of people in ER have the CFA, particularly those who are interested in transitioning to AM. Just depends on what you want to do with your life.

I would suggest, however, that you try to be more upbeat. You're writing made me think of Eeyore from Winnie the Pooh. ER compliments the sales team and should be a bit more optimistic.

It is unlikely anyone on this board has heard of my school, my gpa sucks, and somehow I have worked in PE and at a HF. You know why? I networked and had a strong story. Do the same.

Quid Spucatum Tauri Est? Illegitimi Non Carborundum.
 

From what I hear from the people here who have made the jump, it is hard but not impossible. Usually they move to the advisory branch of their Big 4 firm or another Big 4's advisory practice. Could always get an MBA from a top school and get in that way. There are many threads here describing this, take a look they are very detailed and I'm sure they would be willing to offer advice if you PM them.

 

As above, accounting ---> finance is a beaten path.

As to whether back office jobs are looked down upon, it depends on your career goals. Many on here covet the IB--->PE/HF path, and therefore sneer at back office jobs because they lack those exit ops. However if you are interested in back office work, you can make good money doing it and maintain a good lifestyle at the same time ---- great long term career if you want to be upper middle class with spare time, essentially.

 

One thing you have to remember about this site is that it is a very small representation of the population, and you will naturally take notice of people saying negative things about back office jobs. There are also a ton of kids who are not old enough to have ever worked a full time job and post condescending things about people who are not in a front office role.

Are there people in high finance that look down on back office jobs? Some do, yes. However, it has been my experience in working in banking that most don't really think anything about it. Negativity towards other jobs can also come from the amount of kool aid you have to drink to give up the majority of your outside life to work in banking. I wouldn't let other people's perceptions of a particular job influence your decisions. There are more people outside of finance that have animosity towards bankers than the other way around. The majority of people will have no clue what your job is regardless.

As far as exit opportunities go, it really depends on what your end goal is. If you want to work in high finance then working a back office job is not going to be the best move. At the same time, if you want a comfortable lifestyle (in terms of how the majority of the world defines comfortable) with less stress and more free time, then working a back office job is a perfectly good choice. They both come with a cost and it's up to you to determine what is best suited for you.

 

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