If you receive multiple job offers, you will likely be weighing different salary levels. How does a $45,000-plus-overtime offer compare to a $54,000 set salary? At first glance, $54,000 may sound better. The question is whether you are comparing apples to apples — and that answer generally lies in the issue of overtime.
In the accounting profession, there can be a large discrepancy in real hourly wages. To fairly compare offers, it can take a bit of sleuthing that should begin during the interview process. You need to ask specific questions about each firm's client mix. Talk to the staff level professionals — not just the partners doing the interview or human resources people — about chargeable hour goals and about overtime hours. Ask if overtime is typically during traditional busy seasons or if the firm routinely does special projects that cause overtime during unplanned times. Only after you gather these additional facts can you determine the actual value of your job offer.
In the $45,000 example, additional compensation for overtime means there is less risk in being under compensated for actual work time. If the set salary includes an assumption of a certain percentage of overtime, your additional questions can help you determine if that amount is realistic. Then you'll need to do the math to compare the two offers.
In my experience, there appears to be some trends at work in this industry, and we may now be in a transition period. In the early 1990s, it was common to be offered a base salary plus overtime, but that gradually changed to a higher base salary with anticipated overtime included. Now there is some evidence that the pendulum is swinging back, and a base salary plus overtime is again becoming more common.
After you have been at your job for a year, you should re-evaluate your hourly rate calculations. Were the assumptions you made correct or did you work more overtime than expected? Tracking your actual hourly rate is the only objective way to determine how much you are being compensated for your services. Routinely tracking this information can help you make job decisions throughout your career.
Of course, your job decision will be based on much more than salary.
Tax versus Audit — or Both
In accounting, maybe your biggest decision is selecting between the tax and audit path. Because of the structure of many accounting degrees, future professionals are often asked to make this selection in their sophomore year, when they are interviewing for future internships. This can be difficult because sophomores generally have little knowledge of the actual work and have not always had the chance to take an audit or tax class yet.
While it can help to ask lots of questions about each career path, considering your personality is also critical. For example, one basic difference between tax and audit is time spent in the office. On the tax side, you are generally in the office. On the audit side, you are generally in the client's office. Some people enjoy the camaraderie associated with being in the same office with the same people. Others enjoy working in new locations for each project.
Control over your work schedule also varies. On the tax side, you have more control. If you are a morning person, you may choose to start early and leave work in time to run two miles before dinner. Because of the team structure on the audit side, you have less control. The team leader generally sets the hours for the entire group and controls overtime.
If you simply can't decide between tax and audit, you could work at a smaller firm and do both. That option has become less available, however, as the field has grown more complex. New regulations in both audit and tax have changed the landscape. Most firms find it too difficult to train their staff in both audit and tax. However some firms will allow staff to switch between the groups if they are unhappy with their choice.
In fact, the regulatory environment has changed the balance of power. Historically, the tax side drove profits for an accounting firm. Today, the audit side tends to lead the way in revenue, which is another thing to consider. If you enjoy being "where the action is," then audit may be your best choice.
To Travel or Not to Travel — It's a Vexing Question
Do you like to travel to distant locales? Your job choice may determine how much time you spend on airplanes and in hotels. For young workers, travel can be exciting. There are many wonderful opportunities available for road warriors. I know people who have worked three months in Russia or have spent several months in New Zealand during their first years with a large accounting firm. Of course, most travel opportunities are more mundane.
The specific amount of out-of-town travel depends on the nature of the firm where you work. During your interview, you should ask specifics about how many of the firm's clients are located out of town. If the percentage is high, you can assume that you will be traveling extensively. If you are talking to a large firm, it may have a regional-office structure, so you are nearly guaranteed to be traveling extensively as that firm most likely will cover all the accounting work for an entire region. The type of firm you select and the area in which you practice may dictate your work lifestyle for years.
Finding Jobs with Accounting Firms
Of course, you can't weigh job offers or choose between tax and audit positions unless you are being interviewed. For many students, this means working with their college placement center, attending job fairs, and doing campus interviews. This is a good way to gain exposure, but you will face lots of competition.
If you choose to use the services of a recruiter or headhunter, you may inadvertently put yourself at a disadvantage. I'm willing to pay headhunter fees for candidates with lots of experience, at least four years, but not for inexperienced applicants. If you are inexperienced, your resume may be rejected simply because the firm does not want to pay a fee for an entry-level position. If you submitted your resume through the firm's website, however, you may have been offered a position. Firm websites are now more sophisticated than ever and are an excellent way to get your resume to the right person at the firm.
Accepting a Job is Making a Lifestyle Decision
Selecting an accounting job that will bring you long-term satisfaction involves much more than simply getting a job offer. If you take time to carefully consider your personality traits and your personal circumstances, you are much more likely to accept a position that will align with your goals — both personal and professional.
About the Author
Elizabeth O. Bunk, CPA, CFP is the lead Houston tax partner at Weaver and Tidwell LLP. She has more than 16 years of experience in public accounting, and her practice emphasizes tax compliance and consulting. With offices in Houston, Dallas, and Fort Worth, Weaver and Tidwell is ranked the largest independent certified public accounting firm in the Southwest by Practical Accountant. Bunk can be contacted at 713-850-8787 or by email at eobunk@weaverandtidwell.com. To submit your resume or to learn more about Weaver and Tidwell, visit our website at www.weaverandtidwell.com.
