Big 4 --> setting up on your own!
Hi guys, after this year I have a graduate job offer in the UK doing Audit at big 4.
I am very interested in setting up my own practice after a few years at big 4. Here are a few questions:
Are you more likely to make partner at big 4 than making the same money on your own?
Is this move common?
Are there other departments in big 4 that generally have an easier time setting up on their own, such as Tax?
Would anyone like to shed some stories of people who have failed/succeeded in approaching this move?
Appreciate your input guys, thank-you!
Csulcy
IMO, it's way too early to think about setting up your own practice. Try do be the best auditor you can in the coming year, obtain certifications, and network a lot.
To answer your question as a previous Big4 auditor; yes people set up their own shop, but usually they stop auditing and rather start giving advice to big companies or audit (very) small companies. Depending on your preferences (big vs small companies) you can try to position yourself in different departments of the Big4 you are going to work for. Smaller sized companies -> I would say tax experience is pretty helpful, so try to get some experience into this field. Also, most offices have also specialized departments that just focus on SMEs. Large companies, strategy and transaction experience might come in handy.
There are usually two ways to become partner; become a true expert into a certain field or have a large network and be a real salesman. A combination of these two is pretty hard to accomplish and I feel that this is needed when you start for yourself. So depending on your personality, it might be easier to become a partner than to earn the same on your own, because you can just focus on being an expert and do little networking or network a lot and build your client base this way, while if you start for your own you have to do both. Of course, there are a lot of exceptions, but this is mostly the case in what I have seen the last of couple of years.
Thanks for your input!
What sort of advice do Auditors give, is it things like advising on financial controls, or is it more consultancy? Will the training i get at big 4 prepare me for this sort of advising? Do you see Auditors setting up their own practice often? Speaking to someone who works at the office i'll be starting at; he believes that the only contacts you will have you will not be able to take from the big 4 without taking a big hit on fees, making it pointless anyway!
Your comments are very much appreciated sir!
It depends on what level you exit. Often the more early you quit, the more you will advice on internal control, serration of duties, etc. When you are higher up (sr manager, director), you will often advise more on a strategic financial level.
The big advantage of being an auditor is that you see many, many clients in a short period of time (1 per week). That's why you get exposed to a range of different challenges for each client. That said, it is good to see different groups and Big4 makes it easier and easier to switch groups (audit -> transaction services is most common) to stop their employees to leave after a couple of years to the industry.
Most auditors are not that entrepreneurial and value job security more than being your own boss. In my opinion, 'failing' at a start-up in Europe is still be seen as a sign of incompetence and too much risk taking. The combination of this makes it so that you don't see that many (ex-)auditors open up their own shop, due to the risk-averse nature of auditors.
Indeed, most of the time you cannot take your clients with you, but realize that if people think you are good as an auditor, word of mouth will travel quickly and you can leverage you old contacts into new clients.
Even if you put in significant work on the side, you aren't going to be able to build a book of business after a "few" years at a Big 4 firm. It takes years of experience, technical mastery and business development.
If i find post qualification Im interested in setting myself in practice, will there be any significant advantages transferring over to tax for a few years?
You can setup you own shop immediately, but you need to be realistic about the kind of clients/jobs you will be able to pull in. BTW, it's better to have work experience in the type of business you want to start. If you want to start a small shop, you need to work at one for a few years.
Enim corporis ullam ut ad. Atque exercitationem quia illum quos praesentium est accusantium.
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