TaxNewbie wrote:So its more typical for someone to gain a few years experience then either work for the private sector, or go out on their own as a CPA? What about the managers? I'd imagine they stay at firms for years working their way up and eventually becoming partner.
Depends on long-term goals. I never had ambitions of making partner at a firm (never actually wanted to become a CPA, but that is a long story) and entered private accounting figuring I would work myself up the corporate ladder. What a mistake that proved to be, though I gained a lot of valuable experience. At same time, I never figured I would have my own, successful practice at 34 (ok, basically 35--I'm holding onto the 34 as long as I can, which is only through tomorrow!). Life often takes you a very different direction.
Typically, if your intention is to make partner at a firm, you are going to need to start in public accounting and move into various positions. A lot of people start out with this ambition and realize in order for it to ever come to fruition, they need to change firms. Problem is unless firms have mandatory retirement ages for partners, there is little turnover as people love to cling onto the partner title. Others get tired of not having control and choose to go out on their own. Other than having routine access to coworkers to bounce ideas off of, I have ZERO desire to work as an employee--been there, done that, it was not worth the tolls.
A tax partner I know at a regional firm makes about $300k/year. During tax season and dealing with the THOUSANDS of returns they prepare just locally, he tends to hit the office at 3am and often does not leave until 10pm or later. That is asinine. I would rather make half that compensation and have an excellent work-life balance.
TaxNewbie wrote:
All you need for the CPA is a BA and a minimum of 150 units.
It sounds like someone with a masters would be considered before someone without, though experience will play a role.
The reason you see this is that to achieve the 150 credits, it really is not much more effort to obtain a masters and it has a better perception. Think about it..."this candidate only went for the 150 credit hours, rather than doing a bit more effort to obtain a masters. Are they going to be the go getter we need in this firm?" I believe it was six additional courses for me since my university waived some otherwise required courses based on my undergraduate. Realistically and on a resume, it is penny wise and dollar foolish to not just obtain a masters. It is effectively the new bachelors degree, anyway. Hell, admin level positions now want a 4 year degree!