Hey, before you start reading, I just want you to know that this is a two-part entry where we explore the positives and negatives of working at a Big 4 accounting firm right after you graduate. The Big 4 (and some of the other top 10 firms) provide an interesting blend of pros and cons for someone starting their career in accounting. If you're a student reading this, it will be up to you to weigh these pros and cons against your future career goals. For some people, starting a career at a Big 4 firm is the best decision they can make, despite any of the drawbacks. For others, it can be a very costly waste of time and sanity.
With that out of the way, let's talk about why you should work at a Big 4 firm after graduation as an accounting major.
Reason #1 - The Big 4 Prestige / Network
Whether you like it or not, having Big 4 experience on a resume is something that recruiters and Big 4 alumni see as a sign of prestige. I've seen countless job postings that prefer or require Big 4 accounting experience as a prerequisite, even if the job probably doesn't actually need it. For many, working for a Big 4 firm is like a rite of passage and having that experience on your resume really stands out to those who have bought into the brand. Outside of perception, there are practical reasons why Big 4 experience is valuable. They tend to take strong performers right out of school (if they can find them) and give them a lot of training, and a baseline level of competence (or tolerance for working long hours) is often associated with Big 4 experience on a resume. To be clear, having Big 4 experience does not automatically make you a perfect candidate. However, many recruiters and other accounting professionals will put some extra value on the Big 4 brand.
Reason #2 - Early Reviewer Experience
Public accounting firms tend to operate on a progressive leveraged model. This means that most employees will learn how to do their job, move up through the ranks, and begin to oversee and review the work of others as they gain more experience. What makes the Big 4 special in this regard is globalization. Portions of audit and tax work are being outsourced to people overseas because it can be done for cheaper. This means that new associates might be tasked with reviewing the work of an overseas preparer so they can fit that work into their work papers. Work paper review and people oversight is one of the harder things to get on your resume as an accountant and if you're lucky, a Big 4 firm can give you a good amount of experience in your first year or two. You will be able to get this at other firms as you get promoted to senior and manager level positions, but the globalization model that large firms employ will help you get that experience faster.
Reason #3 - Greater Flexibility to Change Service Lines / Industries
The Big 4 are not just big in terms of their clients, but also their service offerings! Many people start out in one service or industry, but want to make a change down the road. While some prefer to change firms when they make this switch, it can also be done while staying at the same firm! Especially now that teams are working remotely, it’s easier than ever to leverage internal resources at a big firm and transfer to maintain your career progression. This is often an underrated aspect of these larger firms because it tends to be taken for granted or not considered until later. Additionally, it is something that is significantly less common at smaller firms.
Reason #4 - Public Company Engagements
I’ve always told people that if you want to work for a Fortune 500 Company, start in the Big 4! This is because the Big 4 conduct audits over many public companies, which require special considerations. These special considerations include:
SOX 404 Internal Controls
SEC reporting requirements (10-K / 10-Q / etc.)
PCAOB Compliance
This experience is incredibly valuable by itself and is even more valuable if you want to continue your career working in publicly traded companies. At a certain level of experience (usually manager and beyond), it can also be pretty difficult to land a job at a publicly traded company without this type of experience.
When you make the decision about whether to pursue a Big 4 position or not, be sure to evaluate these benefits and understand which are most important to you. Personally, I don’t want to work with publicly traded companies so that Big 4 benefit never mattered much to me. These incredible benefits are just a few that you can enjoy by working for a Big 4 firm, but they do come with a cost. The Big 4 tend to have longer working hours and unique work cultures (even when compared to other public accounting firms) that make it hard for many people to last more than a few years in their position. Interested in hearing about the unique cons of working at a Big 4 firm? Check out next week’s blog!
