Careers advice please - Accountancy profession - choosing between working in practice and industry

ncmscnc

To choose between working in practice and industry.

Please bear with me while I give you some context.

After finishing studies, new junior accountants have the option of either working in an accounting firm or in an industry role with other businesses in their finance team.

I have just acquired MAAT qualification and working on my chartered qualification. (Last few papers left )

I don’t know which one to go for! I have just started with a finance team for a salary just over minimum wages. It’s a glorified bookkeeping job at the end of the day.

File your PDF invoices, track your suppliers orders, manage accounts payable ledger, raise invoices for accounts receivable ledger, organise invoices for calculating input and output VAT etc...

It might not make sense for people not in the sector but it’s basically keeping your company’s books in order. It’s a dirty job at a dirty wage, somebody has to do it.

Accountancy practice work is whole another ball game. Practices range from top multinational firms like KPMG, PwC, Deloitte, and EY to tiny firms, sometimes just a single accountant running their own business. It’s not very easy getting a job in a multinational corporate practice environment. You have to make do with what you get and learn your way to top.
You simply cannot start working on company accounts without a basic appreciation for double entry accounting and standard compliance requirements. It is a skilled job and more demanding than the industry roles.

My requirement here is money.
Salary wise, which of these roles will have a quicker growth to let’s say £32K per annum and beyond.

I am 32 now and haven’t had much luck in terms of my working life till now. I have switched careers several times and would like to start somewhere, earn a little and start my own social enterprise business down the line. (I haven’t worked out which kind of business yet but that’s for another day)

Any suggestions would be helpful.

Brynsam

ncmscnc wrote: »

My requirement here is money.
Salary wise, which of these roles will have a quicker growth to let’s say £32K per annum and beyond.

At the risk of sounding trite, the one where you succeed. Making career choices based purely on cash doesn't always work (look at the number of lawyers who can't wait to go and do something else, despite the six-figure salaries).

Assuming you are in the City(?), £22K is certainly a modest salary, but working hard, fitting in with the culture (despite the politics of an organisation at your own risk) and ensuring that you are seen to add value ought to get you moving up the career ladder reasonably promptly - and where those rungs lead doesn't matter as much as you seem to think, at least in the early stages. Improved experience and qualifications should give you much more choice and flexibility in the future.

JayRitchie

Hi

I'm not sure that you are providing the background required for anyone to advise.

Am I correct that you've passed AAT level 4 but not worked in accounts before?

Do you have A levels (in which case what grades) and / or a degree?

Which professional exams are you taking at the moment? How many papers left?

What work experience do you have from your time prior to accountancy?

How much do you earn at the moment? I'd love to be able to find part qualified accountants who would work for minimum wage!

ncmscnc

Brynsam wrote: »

Improved experience and qualifications should give you much more choice and flexibility in the future.

Thank you. This is definitely a common sense conclusion.

My concern is how I should proceed with this information. Forgive my ranting below. I am just speaking out loud.

My present company where I have just started in a junior accounts position in an industry role is out in the sticks. Away from London in North Hertfordshire by 45 minutes.
I have already not been able to attend few interviews in London because of taking up this role two weeks ago.

I reside in south London and presently commuting all the way there and a bit reluctant in moving locally, as it seems without a car or driving licence, it is impossible to live locally within at least a cycling distance. Also, being not able to attend interviews feels like being stuck in the role already.

Living costs are as expensive if not a tiny bit less compared to where I am staying but if you include the motoring expense, It is the same.

I don't see why I wouldn't be able to find another job in a similar range 22-25k in London if not even more with my qualification. Be it in an industry role or with an accounting firm.

It seems like I have made a mistake taking up this offer with this company.
Still riding the probationary period to find out if there are any prospects of improvement within the company, which I don't see any as there are people in front of me. It's just that this would be the case in any company and I can do this locally in London and don't have to move all the way to middle of nowhere that has no public transport and live miserably.

Sorry about the rant.

JohnDorian

You should do some research on what working in industry and practice means. Your understanding of the two seems to be way out.

Without that there isn’t really you can do in terms plotting your career path.

counterfeit

If it helps I worked in both over a period of about 18 years until I left for reasons of maintaining my own sanity.

Basically, progression through the ranks in practice is fairly straightforward if you are good at your job and the money is excellent. I was earning £45k plus benefits (car, fuel card, phone etc) as a junior manager in 1997 in Reading. However, the constant demand to work until 10pm or until a job was completed didn't fit with having small children and I left to go to an industry role.

I took a small pay cut but enjoyed the work initially, The opportunity for progression was virtually zero as there were only 2 people above me in my firm whereas there were about 200 above me at KPMG.

seatbeltnoob

ncmscnc wrote: »

To choose between working in practice and industry.

Please bear with me while I give you some context.

After finishing studies, new junior accountants have the option of either working in an accounting firm or in an industry role with other businesses in their finance team.

I have just acquired MAAT qualification and working on my chartered qualification. (Last few papers left )

I don’t know which one to go for! I have just started with a finance team for a salary just over minimum wages. It’s a glorified bookkeeping job at the end of the day.

File your PDF invoices, track your suppliers orders, manage accounts payable ledger, raise invoices for accounts receivable ledger, organise invoices for calculating input and output VAT etc...

It might not make sense for people not in the sector but it’s basically keeping your company’s books in order. It’s a dirty job at a dirty wage, somebody has to do it.

Accountancy practice work is whole another ball game. Practices range from top multinational firms like KPMG, PwC, Deloitte, and EY to tiny firms, sometimes just a single accountant running their own business. It’s not very easy getting a job in a multinational corporate practice environment. You have to make do with what you get and learn your way to top.
You simply cannot start working on company accounts without a basic appreciation for double entry accounting and standard compliance requirements. It is a skilled job and more demanding than the industry roles.

My requirement here is money.
Salary wise, which of these roles will have a quicker growth to let’s say £32K per annum and beyond.

I am 32 now and haven’t had much luck in terms of my working life till now. I have switched careers several times and would like to start somewhere, earn a little and start my own social enterprise business down the line. (I haven’t worked out which kind of business yet but that’s for another day)

Any suggestions would be helpful.

How did you just finish your MAAT and have last few papers left to become chartered. Correct me if I'm wrong but to be chartered you need to have completed all exams in ACCA or similar organisations. You can consider yourself part qualified if you complete half the papers IIRC.


It's entirely your choice, accountancy is a safe choice, and if you can build your own accountancy business you can make a lot of money, but working as an accountant won't net you much.. £32K isn't much, to buy a house, start a family etc it's not workable.


There seems to be a big income disparity between accountants in small practice and corporate accountants working for big firms. I know a few corporate accountants who earn 6 figures, and accountants who work for a small practice doing small business accounts who dont seem to earning modest incomes.


If money is a motivator and want something to make you money fast to fund a business. I would suggest becoming a plumber. Become an on-call emeergency plumber, some of them working for pimlico plumbers earn 6 figures. You can raise the money you need fast.


Accountancy is very slow progression, it's slow, steady and stable. I wouldn't use it as a springboard to start a business. Only if you want to start your own accountancy practice.


I considered the profession, but I found the effort and time required in order to become chartered did not pay off with sufficient remuneration (only the brightest accountants recruited by top firms got paid well). Even living in the outskirts of London, zone 3-4, a modest home will set you back £400K. Currently mortgage providers want massive deposits, some wanting 30%. That's £120K cash you'll need to put out to buy a house. 32K will take you forever to save up that much. If you want to live in London comfortably, you need to earn 60K minimum.



Add to that, if you have to become bankrupt or get a criminal record you will be kicked out of the ICAEW and can no longer consider yourself chartered.


You can be forced to be bankrupt for various reason, set up a business that goes south where lenders require you to be the personal guarantor. Messy divorce with spiral legal costs can do this. Being sued for whatever reason.


You can get a criminal record over a drunken fight, even defending yourself where the courts deem you to not be acting in self defence.