Industry Accounting Traps

We frequently discuss the benefits of public accounting firms here, and the common wisdom is to start your career in public accounting and switch to industry accounting later on for better pay and work-life balance. But not all industry jobs are created equal and it’s important that you find one that matches your career pace and properly services your career aspirations. Today, we are going to discuss some of the traps that accountants encounter in industry jobs that limit their career mobility. 

Trap #1 - Hyper Specialization

Being a higher level accounting professional is all about finding your balance between specialization and flexibility. Some industry jobs are so niche, that a good portion of the skills would not be transferable to a new position if you were to leave. These more specialized roles tend to pay more than a normal role, but they tend to lock you into a particular type of role or industry, making it harder to find a different type of role without taking a pay cut in the future. Some people like being an SEC reporting manager or a fund accountant, but you need to make sure that you are setting yourself up for future career success. Make sure you do your research before stepping into a role that could be too specialized for your career plans! 

Trap #2 - The Mismatch 

Skills gained in public aren’t always utilized in industry. Sometimes, that’s a good thing because there are many people that want to make a significant change from the work experiences of public accounting. However, it can come as a shock to some former public accountants that some skills that were coveted in the public accounting environment (such as technical accounting and research) aren’t as sought after in the industry world. This difference can lead to regret for some people because some public accountants have spent a lot of time developing these skills, and don’t like the idea of moving to a new environment where the skills they spent years developing aren’t as valued. In my experience, the mismatch is the largest when it comes to technical proficiency versus operational experience. It’s essential that you understand what skills are going to transfer to your prospective industry role and what skills may not matter as much. Once you have this understanding, make sure you do your homework on what skills are needed in the industry role!

Trap #3 - “No More Room” 

Unlike public accounting firms, Industry companies do not scale their accounting staff very quickly, even in the presence of growth. This means that it can be very difficult to find promotion opportunities in the absence of turnover. A lack of immediate promotion opportunities isn’t an issue for some, but it can be a huge issue for others. It’s important that you understand your own career trajectory and make plans accordingly if you find yourself stuck due to the lack of room for promotions at a given company. This trap is especially dangerous when paired with a specialization like those mentioned above, because having fewer external opportunities will just amplify the downsides of working for a Company that won’t promote you unless there is space.

What Should I Do?

Remember, not every accounting job is the same. You need to find one that fits your career path and taking the time to understand some of these potential drawbacks is a critical part of that process. The next time you are looking for a new role, try asking questions during the interview process that address these potential traps, or do your own research to get the answers!