Differences between IB and Accounting
Writing this post for those in accounting curious about a career in IB
I noticed there's a lot of info about how to move into IB from accounting. So, i wanted to share my experiences in both industries to help anyone determine if the move is all that worth it. A quick intro on me, I worked in audit and transaction advisory before landing an IB offer at a boutique. To those who don't know, transaction advisory is where accountants review and prepare financial statements for Bankers or other end users
Hours
Accounting: In accounting I worked as low as 38 hours and as high as 55 hours. This took time to get used to, but eventually I mentally prepared myself to work between 7am and 6 pm consistently.
IB: In IB, I've worked as low as 35 hours and as high as 80 hours. By the time I got to IB, I had expectations to work long hours so this didn't come as a surprise.
Work Life Balance
Accounting: When I worked my first busy season, I did not have much of a personal life. I dodged calls from loved ones and postponed events for work. When I moved to transaction advisory, the hours were similar, but I had a better grasp on how to manage my time.
IB: Believe it or not I have a slightly better work life balance in IB than accounting. This is due in part to the fact I start my day at 7 am. Also being at a boutique, my hours are more on the low side.
Age of Coworkers
Accounting: The age of the average staff can vary. My starting class was as young as 21 and as old as 42.
IB: The average analyst is between the ages of 22-25.
Types of Coworkers
Accounting: I've found accountants tend to be more attentive, reserved, and realistic
IB: I've found bankers to be confident, charismatic, and sociable
Career Goals
Accounting: In accounting, specifically public accounting, YOU HAVE TO ALWAYS TELL THEM YOU WANT TO HAVE A CAREER IN ACCOUNTING. Even if you don't you can't tell them you have dreams about working in industry or pursuing your own goals. While you may think having career goals out of accounting is good, all your coworkers will think is "This kid doesn't want to be here"
IB: In my experience I've found most bankers know what they want to do after their two years in IB are up. Your MD and your fellow analysts know you either want to do PE or Corp Dev. Unlike accounting, they don't expect you to be there long. In some cases, MDs/Banks take pride that their analysts go onto bigger and better banks.
Friendships at the Office
Accounting: Many accountants accept that their career is demanding. For that, many accountants form close friendships. You will also learn personal details about them like their relationship status or where they live.
IB: Speaking from the perspective of an analyst at a boutique, I've worked with some solid people that I keep in touch with. In my experience, we only ever talk about work and never anything personal.
For anyone considering moving into IB from accounting, I hope this was helpful in determining if IB is something you actually want to do.
Do accountants not know that the people who use the end-product they produce (read: bankers), are getting paid like 3x their salary? Why don't more accountants try to get a seat at the table?
I used to ask myself that question a lot LOL.
1) Accountants are aware that IB Analysts make significantly more money. Accountants aren't always aware the value in the info they work on, in this case the financial statements. Many accountants have a "my work is something that has to get done" not a "my work is valuable to decision makers". attitude. Put another way accountants get in a routine and sometimes forget that there is real value beyond having "the financials audited for client xyz"
2). Speaking from experience, many accountants aren't aware that there is a seat at the table. I had a lot of coworkers who knew bankers made more than they did, but that was that. They weren't aware the responsibilities of an IB analyst and how bankers work. that's been the case 90% of the time. A small chunk is aware that banking is more rewarding but choose not to due to the demanding hours.
Mostly because of risk aversion and cognitive dissonance - I remember hearing "well, we make the same as IB analysts on a per hour basis" during my B4 audit internship during undergrad (starting salaries for B4 audit staff at the time were ~$55k......).
Most of the juniors in the B4 also have never really been exposed to IB largely due to the fact that IB feeder schools are few and far between vs B4 targets, which are generally large state schools (e.g. Ole Miss, Baylor, LSU, etc) but have no IB OCR presence. A good chunk of these kids are coming from parents that didn't attend college or that don't work in finance, so, most of the time, a job in the B4 is the best FT opportunity available from their undergraduate business schools.
Source: worked in B4 audit for 4 years before going to business school and getting into IB
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