The Ideal Timing to Exit Public Accounting and Achieve Your Dream Role

As a finance professional, the decision of when to leave public accounting can be a critical turning point in your career. Whether your aspirations lie in becoming a Controller or ascending to the coveted role of Chief Financial Officer (CFO), the timing of your exit from the public accounting world can significantly impact your trajectory. In this comprehensive blog post, we'll explore the key milestones and considerations that should guide your decision-making process.

The Invaluable Skills Gained in Public Accounting

Before we delve into the optimal timing for your exit, it's essential to recognize the immense value that a public accounting background can provide. As you navigate the early stages of your career, the experience gained in a public accounting firm can lay the foundation for your future success, regardless of the path you choose.

Mastering Financial Statements and Accounting Concepts

One of the primary benefits of working in public accounting is the opportunity to develop a deep understanding of financial statements and core accounting principles. By immersing yourself in the analysis of balance sheets, income statements, and cash flow statements, you'll gain a comprehensive grasp of how these financial reports are constructed and interpreted. This knowledge will prove invaluable as you transition into roles where you'll be responsible for the preparation, review, and strategic use of these critical financial documents.

Honing Time Management and Discipline

The fast-paced, deadline-driven nature of public accounting also instills a strong sense of time management and discipline. As you work to meet the needs of your clients, you'll develop the ability to prioritize tasks, track your time, and maintain a regimented approach to your work. These skills will serve you well in any future role, as you'll be equipped to handle multiple responsibilities and deliver results under tight timelines.

Mastering Excel and Financial Systems

Another invaluable skill gained in public accounting is proficiency in Excel and financial software. From mastering advanced Excel functions like VLOOKUP, INDEX, and MATCH, to gaining familiarity with enterprise resource planning (ERP) systems, your time in public accounting will equip you with a robust set of technical skills that will be highly sought after in the private sector.

Mapping Your Career Path: Controller or CFO?

Now that we've established the foundational benefits of public accounting, let's explore the optimal timing for your exit based on your desired career path – whether that's becoming a Controller or ascending to the role of CFO.

The Controller Track: Timing Your Exit for a Small or Medium-Sized Company

If your goal is to become a Controller for a small or medium-sized company, the typical career path involves spending around two years in public accounting. During this time, you'll gain exposure to the ins and outs of billing, accounts payable, and other core accounting functions. After this initial period, you can then transition into a Senior Accountant role in the private sector, where you'll have the opportunity to apply your public accounting knowledge and gain hands-on experience in the day-to-day operations of a company's finance department.

By spending just two years in public accounting, you'll have the necessary foundation to excel as a Controller, while also avoiding the potential burnout that can come with prolonged exposure to the high-stress environment of public accounting. This approach allows you to strike a balance between gaining valuable experience and maintaining a sustainable work-life balance as you progress towards your goal.

The Controller Track: Timing Your Exit for a Large Company

If your aspirations lie in becoming a Controller for a large, multinational corporation, such as Johnson & Johnson or Facebook, the recommended path involves a slightly longer tenure in public accounting – typically around five years or more. During this extended period, you'll have the opportunity to deepen your expertise in financial reporting, gain exposure to a wider range of clients and industries, and develop a more comprehensive understanding of the inner workings of a large organization.

After your five-year (or more) stint in public accounting, you can then transition into a Manager or Senior Manager role in financial reporting, which will serve as a stepping stone towards a Controller position at a large company. This additional time in public accounting, coupled with the experience gained in a financial reporting role, will equip you with the necessary skills and credibility to excel as a Controller in a complex, high-profile organization.

The CFO Track: Timing Your Exit for a Small or Medium-Sized Company

If your ultimate goal is to become a Chief Financial Officer (CFO), the recommended path involves a slightly different approach. As a CFO, your role will be more strategic in nature, focusing on financial planning, analysis, and the overall management of the business, rather than solely on financial reporting.

For aspiring CFOs of small or medium-sized companies, the ideal approach is to spend no more than two years in public accounting. After this initial period, you should transition into a more finance-focused role, such as a Senior Financial Analyst or a position in investment banking or equity research. These roles will provide you with the strategic, analytical, and decision-making skills that are essential for a successful CFO career.

It's important to note that the path to becoming a CFO is less common for those who have spent a significant amount of time in public accounting, as the majority of CFOs (around 90%) come from a finance background rather than an accounting one. By limiting your time in public accounting and focusing on developing your strategic finance skills, you'll be better positioned to achieve your CFO aspirations.

The CFO Track: Timing Your Exit for a Large Company

For those who have their sights set on becoming the CFO of a large, multinational corporation, there are a few potential paths to consider. One option is to follow the same trajectory as the small or medium-sized company CFO track, spending no more than two years in public accounting and then transitioning into a finance-focused role, such as a Financial Analyst or a position in investment banking or equity research.

Alternatively, you could also consider becoming a Controller of a large company first, and then transitioning into a CFO role. While this path is less common, it is still a viable option for some individuals. As a Controller, you'll gain valuable experience in financial reporting, asset management, and internal controls, which can then be leveraged to take on the more strategic responsibilities of a CFO role.

Regardless of the specific path you choose, the key for aspiring large company CFOs is to strike a balance between developing your technical accounting skills in public accounting and honing your strategic finance expertise in the private sector. By carefully planning your career trajectory, you'll be well-positioned to achieve your goal of becoming a CFO at a large, prestigious organization.

My Personal Journey: Why I Chose the Controller Path

As the Financial Controller of a software company in New York City, I've had the opportunity to reflect on my own career journey and the factors that led me to this role. For me, the decision to pursue the Controller path was a conscious one, driven by both personal preference and practical considerations.

Firstly, the Controller role aligns more closely with my introverted personality. As a Controller, I spend the majority of my time working with my own team, managing the day-to-day financial operations of the company, and ensuring the accuracy and timeliness of our financial reporting. This suits my preference for a more focused, detail-oriented work environment, as opposed to the more extroverted, client-facing nature of a CFO role.

Secondly, the Controller position generally carries a lower level of stress compared to the CFO role. As a CFO, you are responsible for the overall financial health and strategic direction of the entire organization, with the proverbial "buck" stopping with you. In contrast, as a Controller, my primary focus is on maintaining the integrity of the company's financial records and ensuring the accuracy of our financial statements. While I still have a critical role to play, the weight of responsibility is somewhat lighter than that of a CFO.

In terms of my career path, I followed the typical two-year public accounting route, spending time at PwC and gaining a solid foundation in financial reporting, accounting principles, and technical skills. I then transitioned into a Senior Accountant role in the private sector, where I had the opportunity to apply my public accounting knowledge and gain hands-on experience in the day-to-day operations of a finance department. From there, I progressed into an Accounting Manager position, which served as a stepping stone to my current role as a Financial Controller.

Throughout my journey, I've been mindful of aligning my career choices with my personal preferences and long-term goals. While the CFO path is undoubtedly a prestigious and rewarding one, the Controller role has proven to be a better fit for my individual strengths and aspirations. By carefully considering the pros and cons of each path, I've been able to chart a course that has led me to a fulfilling and successful career as a Financial Controller.

Conclusion: Charting Your Path to Success

In conclusion, the decision of when to exit public accounting and the path you choose – whether it's the Controller or CFO track – is a critical one that will have a significant impact on your long-term career trajectory. By understanding the key milestones and considerations for each path, you can make an informed decision that aligns with your personal goals and preferences.

Remember, your career journey is unique, and the path that works best for you may not be the same as someone else's. By carefully considering your goals, strengths, and personal preferences, you can make informed decisions that will set you up for long-term success and fulfillment in your finance career.