Want to go into advisory / management consulting. Which is a better stepping stone? Audit or Tax?
Hi. I'm an accounting fresh graduate who is currently trying to complete ACCA. I would like to go into advisory or management consulting but lately there are no responses from Big4 and other consulting firms. Therefore, I might have to start my career in either external audit or tax. Which of these two would be a good stepping stone to help me carve a career in consulting?
#consulting #accountant #career #business #tax
26 answers
John’s Answer
John recommends the following next steps:
James’s Answer
1. External audit gives you direct client-facing roles and this forms a better part of what is required in consulting (speaking with management - CEO, COOs etc.). Based on personal experience and from some of my personal colleagues, tax at the lower levels don't interact face to face with clients as much and therefore you'll be limited in that regard for "client-facing experience"
2. A lot of firms (even some smaller boutique/mid-sized firms) have an advisory service line and it would make for a comfortable transition given you take the initiative to network with associates/managers in the consulting group. I would say give yourself at least 2 years of practical experience in the audit line of service before contemplating switching to build up your rep. During that time you should be initiating conversations to make the transition happen a lot more smoothly (i.e. they'll know who you are)
3. Exposure to project management skills are more transparent to attain in audit than in tax - especially in your second year. Hopefully when you become an experience associate or a senior you have the opportunity to lead an engagement (setting up client/partner kick-off meetings, leading these meetings, coordinating and delegation of work between staff, coaching, audit task management) and overall pushing the audit through. This requires a lot more work than it sounds and having the ability to satisfy all stakeholders is an invaluable skill (managing up and down). I would definitely seek out for these opportunities and be able to exemplify this in your transition to consulting
Dana’s Answer
Not only do you perform process walkthroughs on each cycle (Treasury, Payroll, Stock-based Comp) as a part of every financial statement/integrated audit (to gain the understanding) you then audit each of the relevant ones in detail (to ensure it is correct/compliant with accounting standards).
This will allow you to really learn from the successes/mistakes of other companies - see good practices and bad. No other position will give you this window into confidential info to show you what works and what doesn't - the best way to provide value to advisory clients. You'll develop a preference for certain ERP's, best practices, controls, etc.
I don't have any insight on PwC's recruiting process for advisory, as I believe it requires a few years of experience. But I do know that PwC allows you to move around laterally within the firm to whatever interests you. Audit not for you? Move to tax, recruiting, internal support services, or advisory. All you have to do is ask your coaching network for help and when the opportunity arises they can advocate for you.
Best of luck!
Dana - Senior Associate, PwC
Amin’s Answer
Amin recommends the following next steps:
Kathy’s Answer
Kathy recommends the following next steps:
Jake’s Answer
Devin’s Answer
I'm currently a junior at the University of Northern Iowa, pursuing my Masters in Accounting and my CPA. As a college student, I've had a lot of exposure to what firms are looking for in both incoming employees and students.
The biggest thing for consulting and advisory is that you must have a large variety of knowledge about the inner workings and businesses and different business models. Consulting and advisory takes a large amount of "general" (for lack of a better term) knowledge in order to assist your client and advise them. With this being said, it is extremely hard to get into consulting and advisory right off the bat; instead, many firms are searching for qualified individuals who have been well-rounded in things such as audit, tax, and technology and have experience under their belts.
I'm also interested in topics such as advisory and consultation, specifically forensic auditing and business valuation. I recently had an interview where I expressed that I was interested that specific market and some of the managers at that said firm gave me some advice and some of the best courses of action to get to the positions that I'm seeking.
The best thing for you to do is get experience doing a large variety of things, but also put yourself out there and see what the firms are looking for.
Best,
Devin
David’s Answer
Try to get into advisory to start instead of going through tax or audit. Sometimes, it is difficult to transfer between lines of service especially into advisory. It is a game of balance, where you are good enough to be recommended to advisory, but not so good that your tax/audit team can't afford to lose you. The best way to transfer to advisory from tax/audit is to actually work on an advisory project and knock it out the park, but the opportunity to do so does not happen too often.
David
Eric’s Answer
Yanying’s Answer
Another thing to be mindful about is that Audit can open more doors of opportunities as compared to Tax. You can jump between industry easily and can jump into internal audit, financial reporting, revenue accounting, AR/AP, financial advisory etc. With tax knowledge, your choices are narrower.
Either of them, it's a great start of your career if you don't truly know what you want to do in life or if you don't have any work experience. I hope that gives you some ideas about what audit/tax is. Personally, I would opt for Audit as it's more client facing and it will build your skill sets for consulting/advisory roles.
Yanying recommends the following next steps:
Kori’s Answer
Lina’s Answer
I'll voice a similar opinion to those voiced above me.
As someone who works in advisory at one of the Big4, I highly suggest Audit over Tax. Many of my colleagues had transferred internally from our assurance (audit) group, compared to relatively small portion of colleagues who had transferred from our tax group. As audit is more broad and allows you to see the inner workings of a company, it's extremely valuable in a deals/advisory context. In advisory, we face a number of projects that span across industries, and to have someone who had a background in a specific industry from audit is helpful. Tax is a bit more specialized and can't be applied as well, as Big4 favors the auditors in transferring a little bit more because of that reason. However, not to say that it is impossible to move into advisory/MC if you decide to start with Tax!
Brian’s Answer
Kristine’s Answer
Jennifer’s Answer
I-Wei’s Answer
Michael’s Answer
Don't get too hung on which path you start out as you can always change roles, more important is to identify the skills you want to develop and consider the connections to be made. Long term goals my also change as you get more involved in your career.
Majid’s Answer
In addition, persue the ACCA as the certificate would encourage even the big 4 to hire if you are already taking exams.
Trevor’s Answer
Lauren’s Answer
Orain’s Answer
I hope all is well with you.
Regarding your question, audit would be a great stepping stone to consulting since this will give you client facing information and also allows you to grow in the space of interacting with the client's management team on a frequent basis.
Regarding your comment on the big 4 not responding lately. Do you know someone who is currently working at a big 4? They sometimes can get you connected with recruiters and talent outreach regarding opportunities there and also advice on how to land those opportunities. If you dont know anyone currently working there then you maybe able to reach out to someone in your linkedin contacts who is currently at the big 4 to assist you with that connection.
Please let me know if you have any further questions.
I hope this helps
Thanks
O.M
Andrea’s Answer
Don't rule out tax though! I have coworkers in management consulting now that started in tax and they developed critical thinking skills that are crucial to being an effective consultant. Getting a foot in the door at any larger firm can allow you to connect with other jobs without having to switch companies. Get involved with internal groups at the company to gain exposure to people with different jobs and stay connected!
Robert’s Answer
There are many different areas of tax that you can work in - state tax, federal tax, direct/indirect tax, tax planning, accounting, compliance, etc. Also, many industries have their own different rules when it comes to taxation and how to apply them to your business; therefore you can find many different areas that could be of interest to you. Also, being in a corporate tax department, I can say that you will be exposed to other areas of finance, such as accounting, treasury, audit, etc. It makes for a lot of great learning opportunities and a chance to be challenged along the way.
At the end of the day, do what interests you. I can only speak from a tax perspective because that's been my career to this point.