What makes public accounting promotions different then other industries and careers?
In most careers and professions, when you are hired on to a specific position, then you will stay at that position until you either a) retire, b) get fired/laid off, or c) apply for and seek after a promotion. Public Accounting works a little differently. You do not need to apply for a more senior position. Promotions are usually awarded based on years of experience, granted that you meet the minimum level of technical and soft skills required for the next climb in the latter.
One of the great benefits of this model is that you can expect a raise every couple of years. Along with added responsibilities and varying opportunities without having to go through an internal interview or other less formal process. You don’t have to worry about fighting with your coworker for that one spot either, there is room enough for everyone. Of course, full disclaimer, public accounting traditionally has a high turnover rate as well which also feeds into making the promotional ladder a bit easier.
Levels of Promotions in Public Accounting
Level #1: Intern
The intern is the first level of public accounting, and you will find it very rare that someone comes into public accounting without first doing an internship, unless they already have several years of industry experience. Accounting interns are usually full-time paid positions that most people either take during the summer, or who take a semester off of school to do an internship, or who even do an internship after graduation as a test run before becoming a permanent employee.
Internships vary in length, but an average internship will at least be around a semester long, so four months or so, however, some internship programs aim to introduce students and graduates to a variety of areas in public accounting and may be 10 months or a year in length depending on the firm and circumstance.
At an intern level, you will be responsible for tasks that new employees are also asked to do. If you work in tax, you will get experience working on a variety of tax returns, most likely less complex returns. For those working in audit, you will work on low-risk areas of audits such as cash or accounts payable. This of course will also depend on the size of the firm that you do an internship for.
Level #2: Associate or Staff
The next level of public accounting would be on the associate or staff level. This stage may last anywhere from 1 to 3 years on average.
At this stage you will be working on a majority of the detail work in your given area of tax, audit, consulting, etc. You will be responsible for working with a team, speaking with clients, and completing a variety of tasks that are assigned to you from your Seniors and Managers.
Level #3: Senior Accountant
The level of a Senior Accountant is a very important milestone in one’s public accounting career. At this level you will begin to oversee other staff. The role of a Senior accountant may include many hats. You may continue to work on some of the items you did as a staff, but you will also be working on more difficult areas of client engagements. You will also be training other staff below you and answering questions that they may have. You will also be dealing with clients on a regular basis, and will generally be in charge of running the jobs that you are working on. You may also be reviewing the work of others below you. Becoming a Senior Accountant usually takes at least 2 to 3 years. Once you become a Senior Accountant, you will stay in this role for another 2 to 4 years on average.
Level #4: Manager
On average, it usually takes at least 5 years to become a Manager in a public accounting firm, although this can often take much longer. At the Manager level, while depending on staff levels which may require you to jump in and help out your team, generally Managers are not doing the majority of the actual work on an engagement. Instead, Managers will oversee the work of seniors and staff. Managers will review their work. They may also work more on the planning phases of a client engagement. They will also work on continuing positive relationships with higher levels of management among clients.
The length of time spent as a manager can vary greatly. Some managers may stay Managers for the rest of their careers, others may work 10 years or so and move on to the next level, that of being a Partner.
Level #5: Partner
Becoming a Partner means that you are now at the top of the food chain in public accounting firm. It takes at least 10 years or more to become a Partner at most firms. Becoming a Partner means being an owner in the business. Therefore, a large portion of what Partners do is they continue to maintain their client relationships, and also work on expanding their book of business.
The level of Partner is one of the few levels that will not just “happen” if you stay in Public Accounting long term. In order to become a Partner, you will normally need to bring in enough clients of your own into the company. It also may require you to buy into the firm.
Becoming a Partner is a significant achievement, but it is not for the faint of heart. It will take years of dedication to reach this level. However, if you are willing to work hard and stick it out, the rewards can be incredible!
Other Public Accounting Roles
The roles mentioned above are going to be your main levels within an accounting firm. However, there are often smaller promotions in between these big milestones, that many firms implement as sort of a training ground for the next role. I like to think of it like Karate for those who are familiar. Along with the main belt colors, some schools will offer a stripe belt system, that include mini mile markers towards the next main goal.
The following are a few of these in between promotions:
Experienced Associate/Staff II: In between associate and senior role. Normally, received after at least 1 year of experience.
Supervisor: Role between Senior and Manager. May begin to oversee planning and review work of staff for less complex jobs. Usually requires being a Senior for at least two years.
Senior Manager: Awarded to those who have been Managers for several years based on expertise and knowledge.
Challenging & Rewarding
The opportunity for advancement within public accounting offers a unique opportunity towards continual growth. Offering both mastery of technical skills, teaching skills, and leadership skills. Best of luck on your journey!