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In the Moonlight Hours

Welcome to 2009. Though we’re not off to the best of starts, let me first wish you all a healthy and successful new year—and share with you some surprising data on a rewarding opportunity that 66% of accountants are ignoring. 

It’s moonlighting—grabbing some extra billable hours that pay straight into your pocket. 34% of accountants are doing just that, and CPAs are doing it most.  A Bay Street Group survey found that nearly 60% of CPAs surveyed spend at least 11 hours per week in “side businesses”—and half of those are working more than 35 hours a week. And it’s not just about tax returns.  51% of moonlighters are working year-round.

So let’s say…30 hours/week times 48 weeks…that’s 1,440 hours at, say, $50/hr…comes to $72,000 per year. What are the 66% of us who aren’t moonlighting…thinking? 

Sure, those are hours of additional work—not family time, playtime or downtime.  And yes, it does take discipline to turn the home environment into a workplace, especially when there’s family around. Many of the surveyed moonlighters said they had to upgrade their home technology capabilities, so there are financial as well as emotional challenges. 

But those few extra hours a day can turn into a sizable sum.  Why aren’t all of us doing it?  I’d like to believe that 66% of accountants don’t partake in moonlighting because of ethical and loyalty issues.

Is there an ethics issue holding some of you back?  Does it feel not quite right?

If you are moonlighting—does your boss know?  Any sense you’re out of bounds? 

Employers—what’s your take on this?  Do you know who’s moonlighting?  Approve?  Forbid?

Let’s hear from all of you.

Posted by David Flax, CPA on January 19, 2009 • Email to a Friend

Comments (5)

If you are in Public Accounting I think it is a serious ethical issue. In my firm it would be grounds for termination. If the employee would bring that effort to the firm we would be more than Happy to compensate the employee.
This is a firm loyalty issue. This would preclude the employee from ever being made Partner.

James P Winston, II • Posted on Mon, January 19, 2009 - 3:57 pm EST

If someone is in Public Accounting and in the tax department, I’m not certain how that person COULD moonlight between January and April each year.  Even if you are working just a few hours more at the office during the regular work week, you are most likely also working Saturdays during tax season.  How do you find the time to service clients outside of that time-frame?  And just how good of a job are you doing, fitting in the extra moonlighting work at home between 7pm and midnight?  I think life/career balance issues are much too important to ignore in exchange for the almighty dollar.  I have seen many very unhealthy CPA’s in my career because people put their careers, and money, ahead of their own health.

And I also agree that it is an ethical issue.  Are all those moonlighting clients obtained without use of company resources?  And all off the company time clock?  Somehow I doubt it.

No firm I have ever worked for has allowed moonlighting at another job.  Even a job completely unrelated to accounting.

Susan Miller • Posted on Mon, January 19, 2009 - 4:28 pm EST

Moonlighting would be grounds for termination at the firm where I work.  There are certain opportunities where I do not see an ethical issue in terms of conflict of interest but it would only be a matter of time before a conflict arose.  At that point choices would have to be made and likely the pressure for additional income could taint the correct moral and ethical decision.  It is likely best to avoid the situation. In reference to the aforementioned comment of additional compensation for putting the extra effort at one’s current firm, I do not think there is a direct correlation and I seriously doubt much consideration would be given by partners if that topic truly came up as a discussion point.  It is easy to make that statement as an ideal or model leadership style but it would be a rare instance when I think such idealism would ever be acted upon.  This is not to say that that the correct decision should be to try and provide compensation if extra work is truly provided beyond the required efforts to perform one’s agreed upon work load.

H.G. Jenkins • Posted on Tue, January 20, 2009 - 10:13 am EST

I have worked at 3 of the “Big 4,” and this would be something that would get you fired in each firm.

To me the bigger issue is the ethical issue that was brought up earlier.  To me you are stealing from your employer.  Either you are taking clients that they could be serving, or you are not giving 100% to your job.

I could see getting by the first issue with providing services that your employer doesn’t.  However, I would see the second one as nearly impossible to get around (assuming FT employment).

Jim Landrigan • Posted on Tue, January 20, 2009 - 10:46 am EST

I would assume that someone moonlighting while working at another firm would open up the firm the employee is working for to potential lawsuits; therefore, it is probably not a great idea.

Karl Johnson • Posted on Thu, January 22, 2009 - 9:16 pm EST

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