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Is There Life Outside of the Big 4?

There comes a point in time when all professionals at Big 4 firms wonder if there is a better life for them outside of the Big 4.  I know this first hand, having first pondered this thought back in 1992.  I can assure you there is a whole other world out there for CPAs outside of Big 4, however it’s not for everyone. 

CPAs have to choose between public accounting and private industry.  Most CPAs from Big 4 firms initially think there only other option is private industry.  That is because they don’t always see the benefits of working at a smaller CPA firm.  There are so many quality local and regional CPA firms in the southeast.  Morgan Ross Group only serves public accountant professionals, but even within the public sphere, there are choices to be made between big and small firms. While Big 4 firms can offer great security and the respect earned from working with a recognized and established leader, there are also a great deal of benefits associated with working at smaller and local firms.

Often times working at a smaller firm offers new hires more responsibility, which can be great for those just starting their career or for those looking to learn new skills. For those further along, small offices give employees an opportunity to impact their client’s work and make changes to how their business’ are run.  They are more often viewed as a trusted business advisor by their clients.  Smaller companies can also often offer more flexibility in terms of hours and days off. Many times they are located closer to home, and provide employees with a better work-life balance.

However, this is not to say that a smaller company is definitely the way to go. There are great opportunities for advancement at larger companies too, and I personally had fulfilling experiences when I was working in the Big 4. You will be surrounded by talented colleagues and do work on projects for top clients.

The stigma associated with firms that aren’t one of the Big 4 is that they aren’t quite as good. While the prestige of working at a Big 4 firm can be great on a resume and offer valuable experience, there is much to be said for small firms too. Big 4 firms and small companies serve very different clients, but the work involved is equally stimulating. Salaries for partners at small firms rival those at Big 4, and often time with less strenuous hours. Would you rather be a big dog in a small company, or one of many at a large one?

Posted by David Flax, CPA on July 09, 2008 • Email to a Friend

Comments (7)

Size, is seldom a differentiator.
Culture, vision and values ARE.
Our size, global reach and brand strength, are a reflection of the experience we provide our people.

Andre Schnabl • Posted on Wed, July 16, 2008 - 9:58 pm EST

I found this article way too vague to be of any use to someone attempting to make a decision.  Proofreading would be a good idea as well.  Small firms often times do not offer less strenuous hours, most times they are equal or more than large firms by virtue of the shortened work force.  I am a huge proponent of small firms, but we have to offer candid, authentic information to people making these choices - they will be greatly rewarded working in a small firm, but they MUST be willing to work hard and pay their dues - it does pay off.

Mona Wade • Posted on Thu, July 17, 2008 - 8:36 am EST

Certainly there is life outside the big 4 in national, regional and local CPA firms.  I would make two observations.  First, outside the big 4 there are great firms, good firms, mediocre firms and poor firms.  Generally, the top ten firms are at least good and probably great otherwise they wouldn’t be as large as they are.  There are many small firms that simply don’t have the resources to be anything more than poor and they never will.  Obviously, that is something to avoid.

Second, small firms tend to be a single silo while larger firms tend to have two, three or scores of silos.  In a large firm, if you don’t like the silo you are in, you can perhaps jump to another one.  In a small firm, the only way to get out of the silo is to leave the firm or create a new silo.

I would encourage anyone making a jump between two firms to read True Professionalism by Maister.  The book will help frame the issues to consider as you look at a new firm.

ESA • Posted on Thu, July 17, 2008 - 1:10 pm EST

ESA- I agree with your comments. Well stated.  However, there are some exceptions to the very small firms not leaving you a way to get out of the silo. 

In certain situations there are succession planning concerns by the solo partner or two partners which could leave huge upside for the person who enjoys working with small businesses and is entrepreneurial.

In any event, I appreciate your comment and in general strongly agree with what you said.  I will be picking up True Professionalism by Maister.  I’ll let you know what I think!

David Flax • Posted on Thu, July 17, 2008 - 5:51 pm EST

In regards to Mona’s comments above- my entry was not written to give advice and influence decisions.  I wrote it because too often small public accounting firms are not even considered an option by folks in the Big 4.  They only consider private industry.  I believe public accounting is a wonderful profession and want people out there to know that not all public accounting firms are created equal.

As far as people “paying their dues” and hard work it sounds like I hit a sore spot for you.  Read my blog entry titled Spoiled Accountants?

David Flax • Posted on Thu, July 17, 2008 - 6:08 pm EST

I read your blog entry concerning the benefits of working at a smaller firm.  One benefit you listed is more responsibility for new hires.  I believe that is what I find most appealing about working at a smaller firm.  In my position at Draffin & Tucker, I worked closely with the partners and dealt directly with the firm’s clients.  I also had input into scheduling the completion dates for my projects.  Because of the specialized nature of my work, this increased responsibility and autonomy allowed me to produce top quality work product for the firm.

JLW, Esq. • Posted on Thu, July 17, 2008 - 6:32 pm EST

Your article is good!  As an owner of a small firm, it is nice to see someone sticking up for us!  We do offer a good life/work balance and a great deal of work responsibility to our accountants.

Julie • Posted on Fri, July 18, 2008 - 6:56 pm EST

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