I've got some questions about the prospects of going into corporate finance after getting my accounting qualification at a Big Four.
Anyway my situation is this: I’m starting my job as a trainee in audit in London at one of the Big Four. To be perfectly 100% honest the main reason I’m doing this is to get a springboard into other jobs in finance by doing the qualification, getting experience by visiting different clients, etc. This is because audit really isn’t my passion (don’t think there are many people who can say that it is) but what I do love is corporate finance. More specifically I’m interested in FP&A and financial modeling/forecasting and budgeting, pricing, performance analysis and other management accounting type work.
I got my undergraduate degree in finance at a leading UK university and secured a grad job starting this fall at a Big Four but as I had some time before that started, I went back to the company I interned with after my 2nd year at Uni (this was back home in an Eastern European nation) and worked as a financial analyst. This job is awesome as I get to do very high level stuff: working with financial models for individual investment projects as well as the firm as a whole plus all sorts of other analysis and forecasting. However as the salaries here are awful compared to London and the career development opportunities limited, I’m going to London to work for the Big Four.
Anyway, after getting my accounting qualification I really want to move back into corporate finance (specifically management accounting/forecasting / analysis) and I’m wondering whether this is a realistic hope (also taking into account the fact that in addition to a professional qualification I have relevant work experience)? Do people from audit go into analyst/forecasting roles at companies?
I’m not too big on banking (heard the hours there are horrible and I want to do things other than spreadsheets in my life as well) but am interested in industry, specifically big multinationals, preferably in the energy/natural resources sector (as this is the industry I’ve got work experience in and will be auditing).
I’ve also heard that the demand for finance professionals is so big that a lot of people leave the Big Four even when they’re just part qualified. Does anyone else know how common it is and whether the benefits coming from it outweigh the downside of not completing your qualification fully?
Also would it be advisable (assuming I can find the time for this) to take some advanced financial modeling courses at a reputable institution to help spice up my CV to help me secure a job in a role like those aforementioned?
1) Yes, people move from Big 4 audit to this type of role all the time. I will caution that these roles are more popular than most other industry positions, so it will be significantly more difficult, but it's definitely doable.
2) No, do not leave the Big 4 before you get your CA unless you can still get the CA another way.
3) Advanced financial modeling courses certainly won't hurt, but I don't think it will be your golden ticket either. You should concentrate on your CA and think about other things only after you've passed.
Agree with #s 2 and 3, partially agree with #1.
808 is correct to say that people make that move all the time. However, I wouldn't say it is difficult. I would actually say it's pretty easy. It's a path that myself and many other have taken. Obviously, if you are looking to go to your home country where there may or may not be a lot of opportunity you must factor that in. However, overall - it's pretty easy to go from Big 4 to Corporate FP&A type roles. I think the majority of people that leave Big 4 (and there are a lot that do it every year) go into some sort of corporate role.
OP seems to be describing a part of FP&A that is very strategic and forward-looking in nature - e.g. constructing financial models to evaluate potential investments. A lot of what is called FP&A is more focused on the "analysis" part and includes things like calculating the AR reserve and keeping track of AP turnover, then giving the calculations to the higher-ups who may use them to help make business decisions. The vast majority (90% as an estimate) of Big 4 alumni I know have gone on to FP&A roles, but I would only put a fraction of those (let's say 25% as a rough estimate) in the category the OP is talking about.
as someone who has gone through this process, i can tell you that most of the recruiters and companies will want to push you into an SFA role that is connected more closely to accounting, than a role involving strategic planning or modeling. this is generally more true for larger, established brand-name companies. at smaller businesses, i'm really not sure. if you have 3-4 years of audit experience, you are going to need to put something on your resume or add something to your cover letter that details why you can go from auditing/accounting to a strategy driven finance role. getting the interview is the hard part. once you get the interview, you will then need to be able to sell yourself, because I guarantee you will be competing against non-big 4 people who have more direct industry experience and you will need to convince them to make a bet on a person, and not on work experience.
Thanks for all the input.
The thing is that I do have modelling experience, I really have done this kind of stuff for about 1-1,5 years. The problem is however that by the time I finish my ACA that would have been 3 years ago. Excel functions probably won't change that much over time so I don't think I'll lose my technical skills but I'm wondering whether this kind of experience would by then by a bit too far in the past to be relevant any more.
Also would it be possible (or to be more precise: is this common) to start off in a less glamorous part of FP&A and then after 1-2 years transfer to the financial modelling/forecasting/strategic side of things?
Regardless of what job I get in FP&A, I'm definitely not staying in audit much longer than I need to get my ACA.
Just make sure you remember/document the details of your experience with modeling/forecasting work for personal reference. They can grill you on the inputs/assumptions of your model during the interview and it is easy to forget those things after 1-2 years.
Big4 to Corpfin: How easy is it really? - Auditor (Originally Posted: 03/12/2014)
I'm getting different opinions on this. Say you're a Big4 auditor who has been at the firm 2-3 years, you have your CPA, and you're performing well. How hard is it to transfer to a more finance-oriented role at a F500 company? I've been working in Big4 for almost a year now, and I'm making sure not to bite on the limited-upside fund accounting/reporting opportunities coming my way (like 50% of my class is doing). I'm interested in a more forward-looking finance role at a F500, or even a hybrid role. How difficult is this to do achieve? I was always told that corpfin is a common exit opp from Big4, but after reading other people's comments I'm not so sure. Does anyone know people who have done this?
If you get out early enough, then yes. When you become a senior accountant is when you should ideally jump ship. The longer you stay (especially to manager) the harder it gets to make that switch.
http://tinyurl.com/lv4okvp
Apparently it's good enough experience to get you into Google's M&A group.
Don't believe everything you read on this site.
I've done it know others who have as well.
I would say it's relatively easy, but you do need to be aware of what you're doing. Every recruiter who wants to fill an internal audit role will call you because you have big 4 on your resume. It's easy to jump at the first offer that'll net you $10k, but dont. Wait for the role you want, but know what's realistic.
Most Corp Fin roles are really hybrid roles (unless you're a specific accounting function, tax or treasury) and this is probably where you start. Good companies will keep you in that role for 2-3 years and then the world is your oyster for internal movement. Moving to a hybrid role is a great option. While there's a small chance you could move straight to a strategy role, it's unlikely and I wouldn't advise you to hold out for that type of position.
If you have specific questions, let me know.
Take a look at some of my recent posts, I made it from big 4 to strategic finance/Revenue forecasting at a F100 company. However, I spent 1.5 years in big 4 Transaction services after 2 years in audit. I was luck enough to get hired as a manager as my team doesn't have any senior analysts. I doubt I'm the exception, but I did observe the exit ops of every person who left audit or TS and frankly I may have only seen 1-2 people leave for FP&A Hybrid type roles. Almost everyone left for financial reporting/accounting, and from TS some to Equity research and in house Due diligence for PE firms, as well as some interesting strategic finance roles. Moving over to TS will ensure you can land a more finance oriented role. Otherwise, a straight move can be a bit tuf, though not impossible. Can't tell you the number of folks who took internal audit jobs, which sounds terible to me.
it's very possible to make the jump from big 4 audit to corporate finance. that's not to say you will get an interview for every single corporate finance job you apply to, but if you stick with it i would be surprised if something didn't eventually work out. if you do get to the interview stage, you will need to prove you are a smart, business-minded person. there is no one way to do this, but in general, can you articulate the connection between finance concepts and general business strategy? i've interviewed accounting heavy candidates for corporate finance roles, and some really struggle in this area. you can tell they know debits and credits, how to book an entry, how to close the books, etc., but when you start talking business scenarios and the associated finance implications, they go blank. the expectation is you know how to use excel, know the basics of the financial statements, etc, but can you analyze strategy x vs. strategy y, detail the financial impacts of both, and then articulate what you would recommend and why as the finance partner in the room.
I wouldn't say that it is easy, but it is very common. The posters so far have done a good job of going in to the details, so I will refrain from doing so.
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