Not all public accounting firms come in the same shape & size. There are different kinds of accounting firms based on size and scale which offer key differences when considering a career in public accounting.
What is a Public Accounting Firm?
Public accounting firms are companies that offer certain accounting services to other individuals and businesses. Often these services involve tax preparation, financial statement audits, reviews, consolidations, consulting services, and bookkeeping services. Public accountants, many of which are licensed CPA’s are hired by these firms to serve their many clients and perform these services on behalf of outside businesses, or for individuals.
How large are public accounting firms?
For this purpose, we will define public accounting firms into 3 distinct categories. Each category is defined below:
Local Public Accounting Firms
These firms typically involve 1 office with very few employees. These are the “Mom & Pop” shops of accounting firms. These firms usually a run by a few individuals, with a few employees underneath them.
Regional Public Accounting Firms
Two or more accounting firms may be classified as a regional accounting firm. These firms are stationed only in a specific region such as a specific state, or group of several states. These firms may have numerous partners or other owners and may have numerous employees, offices, and specializations.
National/International Public Accounting Firms
These involve firms that have offices and personnel throughout an entire country or in multiple countries.
Key Differences Between Working At Different Size Public Accounting Firms
The size of public accounting firm that you choose to work at will have a large effect on the type of work that you perform as a public accounting professional. The below list includes general differences when working at different size firms. This list is not all inclusive, and some firms may differ.
| Local CPA Firms | Regional CPA Firms | National/International CPA Firms | |
|---|---|---|---|
| # of Clients Per Year | – Typically work on small clients, which may include working on new clients every couple of days, or weeks. | – Work on a variety of small and medium size clients, which may include working on new clients every week, couple of weeks, or several months | – Work with large corporations typically – Employees may work on one client the entire year, or a few clients throughout the year. |
| Specialization | – Due to small amount of employees, you are likely to become the “jack of all trades”. This might mean working on all areas of an audit, OR working on multiple types of tax returns. | – Will see various areas within work, with some specialization in types of client engagements. | – High Specialization – typically will work in-depth on specific areas of an audit only, or will specialize in a specific type of tax return or other accounting engagement. |
| Industries | – Varies – most likely will include smaller clients in a variety of industries common in location. | – Varies – often firm as a whole will have many different industries – Note: Often, specific offices may focus on a few key industries (i.e 1 office may have a lot of middle market clients, while another office has a lot of construction clients, etc.) | – Varies – often firm as a whole will have many different industries – Note: Often, specific offices may focus on a few key industries (i.e 1 office may have a lot of middle market clients, while another office has a lot of construction clients, etc.)More Publicly Traded Companies |
| Services Provided | – Typically Audit/Tax | – Tax preparation – Financial statement audits – Reviews – Consolidations – Consulting services – Bookkeeping services | – Tax preparation – Financial statement audits – Reviews – Consolidations – Consulting services – Bookkeeping services |
| Work Load/ Average Hours Worked In A Week | – During non-busy times of the year average is 40hrs per week – During “Busy Season” (Jan-Apr typically) the average is still 40hrs per week. | – During non-busy times of the year average is 40hrs per week – During “Busy Season” (Jan-Apr typically) the average is around 40hrs – 60hrs per week. | – During non-busy times of the year average is 40hrs per week – although some firms may offer reduced schedules during the summer. – During “Busy Season” (Jan-Apr typically) the average is around 60hrs + per week. |