Big 4 question
Ok, so I'm in my last year of high school right now, and I want to study accounting. After researching a bit, I saw that a lot of people said you should work at a big 4 firm for +-5 years, while networking with your clients so you can get a job offer from them for less hours and more money.
Is this a good way of going about it, or is this just all bogus? And if this is what you should do, how much money would you eventually make? (Not that I'm in it for the money, although it is a nice plus.)
Any answers would be greatly appreciated. (I live in The Netherlands, if that helps.)
Untrue. This has SLIGHTLY more truth to it in Europe than in the US but if possible, ALWAYS go straight to the client side. Any job offer you get directly from Big4 will probably be in internal BO/MO finance at a BB which is literally the worst place in the world.
Big 4 in Europe is a slightly different beast, but I can speak to my experience in the States.
Also, I'm not familiar with the Tax practice but I'll offer my insight into the Audit practice.
If you love accounting, then go for it. However, as a High School senior, I wouldn't narrow your choices so far right now. If you do choose accounting, working about 5 years and jumping to industry is common. However, it's not for everyone. Some jump earlier (as a senior associate at 2-3 years) and some jump later (as a senior manager at 7-9 years). It will depend on the offer. You'll hear lots of stories about when is too early and when is too late but the truth is that it is relative for everyone. However, if you want a job as a Controller/Comptroller, you will have to wait a little longer, and if you want CFO, you have to be really good and likely jump later still. However, most common exit opportunities will be strictly accounting related.
To give you an idea of comp, here are some VERY approximate annual figures (read: these aren't exact but they will give you a good enough idea):
Year 1: Associate $45,000 - $55,000 Year 3: Senior Associate $60,000 - $70,000 Year 5: Manager $75,000 - $85,000 Year 8: Senior Manager $95,000 - $115,000 Year 12: Senior Manager $150,000 - $175,000 Partner (after paying back buy-in) $250,000 - $1,000,000
The caveats:
You will work long hours (around 50+ in non busy-season, and 75+ in busy season. Usually not less but often much more). At first your pay will be very low compared to your peers in finance/consulting. No bonuses. Eventually your pay will be comfortable and may rival your peers in industry management, but it will never reach finance/consulting levels, until Partner, but even at that point MD's at Banking/Consulting firms will still make more.
The work is highly regulated, adds marginal value at best, and can be very boring. However, that is my semi-humble opinion. Others love the technical accounting aspect and do it well. Coupled with a type-A personality and lots of motivation, those types usually become Senior Managers or even Partners.
The Big 4 recruiting process can be easy or challenging, depending on whether you are at a target school. Interviews are mind-numbing in their simplicity, which is a distinct point of contrast when compared to finance/consulting.
It believe that the most of the really strong Big 4 candidates would perform well in the recruiting process for finance/consulting fields. In these fields the work is usually more interesting, the exit opportunities are more intriguing, and the pay is much higher (though the hours are usually higher as well).
So, to recap a lot of unsolicited advice, explore your options. I know people that love accounting and would never choose another career and they continue happily at the Big 4 as managers and partners. And there are others who landed in the Big 4 without exploring options and are now trying to break into finance/consulting (like myself).
Good luck!
I can't say that it will be better for you to go directly that direction, but I can definitely say it would have been better for me. And by better, I just mean it would have been more satisfying, enjoyable, challenging, etc.
You will have to make your decision as you research the different options, but getting those jobs is the same as getting Big 4 jobs. Know what they do, network, learn the technical stuff, get a good resume, get applicable internships, network some more, practice as much as you need to for the interviews etc.
If you're still in High School though, work hard but keep having fun and learn about the different careers along the way. That's the key: the more you know about the careers, the better you can position yourself to pursue the career that fits you best.
For reference purposes and again contrasting EU / UK vs US, here are rough figures for pay / promotion:
Year 1 - Associate - $43k Year 2 - Senior Associate - $45k Year 3 - Assistant Manager - $56k Year 4 - Assistant Manager - $70,000 Year 5 - Manager - $88,000 Year 6 - Manager - $100,000 Year 7 - Senior Manager - $110,000
In terms of hours you will do (realistically) 35-40 a week outside of busy season and then 60-80 during busy season (typically January - March).
Do you get paid for working overtime during busy season? And it's illegal to work more than 60 hours a week in my country.
If you know already you want to become an accountant, try to work at a Big 4 firm four days a week and one day a week you study at Nyenrode. The 'randstad' offices have bigger clients than the regional offices. And yes, it's better for your career to work at larger clients.
PM if you want to know more. Did 2 years at a Big4 in Utrecht after high school.
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