Mid-Tier Accounting Firms: Pros and Cons vs. Big 4

When it comes to starting an accounting career, we’ve looked at Big 4 vs. small firms. However, those aren’t your only choices. Mid-tier accounting firms have a lot to offer, both in terms of salary and work-life balance. Additionally, according to the Australian Financial Review, mid-level accounting firms have been growing faster than the Big 4 recently.

Life at Mid-Tier Accounting Firms

Not all mid-market accounting firms are the same. For example, working at RSM, BDO, or Grant Thornton will be quite a bit different from working at a firm with 1,500 employees. However, there are some commonalities to these jobs.

Size

Before we get into details, it’s good to know what is considered a medium-sized firm in accounting. Essentially, the Big 4 are the top-tier firms in terms of size and revenue, and they’re in a field all their own. According to Accounting Today, the smallest of the Big 4, KPMG, had 35,736 employees as of 2019. RSM, the next-largest US firm, had only 9,670 – about a quarter of KPMG’s size.

Thus, you could classify the largest mid-size accounting firms as those with fewer than 10,000 employees. They also offer international services, but on a smaller scale than the Big 4. Additionally, they span multiple geographic regions and work with middle-market companies. If we consider the top 20 or so US firms beneath the Big 4 to be mid-tier, these are firms with between 1,000 and 10,000 employees.

On the smaller end, regional accounting firms typically operate out of one or two regions, though they may have multiple locations. Below that are boutique and local firms. So, medium-size accounting firms are essentially smaller than the Big 4 but larger than regional firms.

Salary

Since larger companies have more resources and tend to pay higher salaries, it makes sense that the average starting salary at a mid-tier accounting firm is less than a Big 4 but more than a small firm. You’ll typically start between $48,000 and $66,000 a year. As a junior CPA with 1-3 years of experience, you can expect to earn between $57,000 and $81,000 a year. At a senior level with 4-6 years of experience, your salary will usually fall between $70,000 and $100,000. Finally, as a manager or director, you can earn between $85,000 and $122,000 at a mid-tier firm.

Here’s a more specific breakdown of mid-tier accounting firm salaries by job title from Robert Half’s Salary Guide. Unfortunately, the guide no longer breaks down salary by firm size, but these represent the 50th to 75th percentile, which is about where mid-tier firms fall.

	Starting salary	Junior	Senior	Manager	Senior Manager
Tax services	$49,000- $57,250	$59,750- $70,500	$73,250- $87,250	$107,000- $127,000	$137,500- $165,000
Audit/assurance services	$49,000- $57,250	$54,500- $64,250	$66,750- $78,500	$93,500- $110,000	$134,750- $161,000

 

As for a medium accounting firm partner salary, that will once again vary based on the size of the mid-tier firm, but it typically ranges from $200,000 to $800,000 a year. In contrast, the typical partner salary of a small firm of 10-50 people is closer to $140,000-$150,000 a year. At the Big 4, however, partner salaries start around $300,000 for the first year and can go as high as $3,000,000 after a decade or more. Once again, a partner’s salary at a mid-sized accounting firm lies somewhere between the small firms and the Big 4.

Type of Work

Unsurprisingly, the biggest international clients and richest individuals go to Big 4 firms for their accounting needs. Thus, you’ll work with slightly smaller clients at mid-tier firms, although they may still be international companies. Additionally, since fewer employees are at a mid-tier firm, you’ll be called on to fill more roles and thus gain a broader range of experience. These firms have fewer resources than the Big 4, so there’s less streamlining and systematization of work processes. Also, you may work with older technology or software.

Hours

The trade-off for the smaller salaries at mid-tier accounting firms is that you’ll work fewer hours than at a Big 4 firm. Indeed, many people choose to leave the Big 4 to find a better work-life balance. You’ll still work longer hours during the busy season, but during the rest of the year, the hours are closer to 9-5. There’s a substantial difference between the normal working hours at a mid to large accounting firm vs. Big 4.

Workplace Culture

If small firms feel like families, Big 4 firms can feel like huge, cold corporate entities. A mid-tier firm is a good compromise. It won’t feel small enough to be claustrophobic, nor is it large enough for you to get lost. You’ll know and develop relationships with your co-workers, but you’ll also get to work with people outside your department.

Plus, employee turnover in medium-sized accounting firms is much lower than at the Big 4 since many people are temporarily working at the largest firms for a resume boost. There’s also the fact that advancement is so important at the Big 4 that it fosters a cut-throat environment. You’ll feel much less of that at a mid-tier firm.

Advancement

Given the size of the Big 4, there are more opportunities for advancement. However, there’s also the expectation that you’ll be more geographically mobile. If the firm has a better job for you in another state or even another country, you’ll be expected to move there. Moreover, since the Big 4 have more partners than mid-tier firms, you stand a better chance of making partner there. However, you will also face fierce competition from your many fellow employees.

Exit Opportunities

Overall, Big 4 firms are still unmatched when it comes to buffing up your resume. Smaller firms prefer to hire former Big 4 employees over those from mid-tier accounting firms. There’s a reason that medium-sized firms are sometimes called “second-tier.” That said, taking a job that doesn’t suit you just because it looks good on your resume isn’t the best career path for everyone.

Working For a Mid-Tier Accounting Firm: Pros and Cons

Ultimately, here’s what it boils down to when it comes to Big 4 vs. mid-tier firms.

Pros of Mid-Tier Accounting Firms

• Better work-life balance. You’ll work less overtime and may not need to work nights and weekends outside of the busy season.
• Less pressure. While you’ll still be expected to produce high-quality work, there won’t be the same high-pressure environment you’d feel at the Big 4.
• Decent salary. Although you won’t make as much as you would at the Big 4, you’ll still make a good salary compared to smaller firms, particularly as you advance.
• Broader practical experience. You’ll work on a greater variety of things and stages in the auditing process, gaining good experience and helping you prepare to take the CPA Exam.

Cons of Mid-Tier Accounting Firms

• Medium-range salary. Mid-tier firms make less revenue than the Big 4 and thus pay their employees less.
• Less chance for specialization. At the Big 4, you may spend a great deal of time with a single client working on a single part of an audit, allowing you to specialize.
• Less chance of making partner. Mid-tier firms have fewer partners and potentially more office politics, making advancement more challenging.
• Fewer exit opportunities. A mid-tier firm, even a large one, doesn’t look as good on your resume as a Big 4 firm.

Mid-Tier Accounting Firms List

If we consider accounting mid-tier firms to be those with between 1,000 and 10,000 employees, here are the 20 firms that fit this bill. This data comes from Accounting Today’s list as ranked by revenue.

Firm Name	Total Employees	Annual Revenue
RSM US	9,670	$2,141,720,000
Grant Thornton	8,556	$1,865,220,000
BDO USA	6,592	$1,470,000,000
CLA	5,521	$954,000,000
Crowe	4,510	$923,900,000
CBIZ & MHM	3,876	$784,910,000
Moss Adams	3,076	$691,000,000
CohnReznick	2,659	$645,000,000
BKD	2,611	$594,620,000
Baker Tilly	2,901	$578,400,000
Marcum	1,784	$549,750,000
Plante Moran	2,495	$542,580,000
Dixon Hughes Goodman	2,001	$430,000,000
EisnerAmper	1,401	$360,000,000
Wipfli	1,819	$323,600,000
Carr, Riggs & Ingram	1,975	$305,970,000
Eide Bailly	2,044	$299,200,000
Citrin Cooperman & Co.	1,045	$270,000,000
Armanino	1,165	$268,000,000
Withum	1,031	$206,200,000

 

Final Word

So, why mid-tier over Big 4? Usually, it comes down to work-life balance. Most people who work at small to medium accounting firms do so because it allows them to spend more time with their families or pursue hobbies. However, a mid-tier firm will still provide a better salary and more opportunities than most small-sized firms. Your choice will come down to your career and lifestyle priorities.

FAQs

What are the mid-tier accounting firms?

Generally speaking, the medium accounting firms size refers to the largest ten to twenty firms below the Big 4. RSM, BDO, and Grant Thornton are the largest and most well-known of these firms

Which are the best medium-sized accounting firms?

The best firm for you is, as always, the one with the work environment that suits your life and needs. You’ll have a different experience at, for example, Eide Bailly, which is headquartered in North Dakota, than you would at RSM, which is headquartered in Chicago. Finding medium-sized accounting firms is easy, so research the firms’ corporate culture to decide which is the best for you.

How many employees are there in a mid-size accounting firm?

Between 1,000 and 10,000 employees are working at a mid-tier accounting firm.

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Accounting Resume Writing 101: Find Your Hook

Drafting an accounting resume should be nothing new for you, but have you ever reviewed a resume on behalf of your company? I have.

I started my job at an investment bank and was part of the team who screened resumes for first-round interviews of the analysts’ program (yes, this was done by junior bankers and not HR professionals). This was typically done after a long day, and the stack was thick, like 3-4 inches, so I must have been reviewing hundreds of resumes in one go.

A Process of Elimination

The most efficient way to process the pile was by elimination. I looked at the GPA. Anything below 3.0 was out. More than 2-3 typos? Out. Ugly formatting? Out.

Then, I skimmed through the text. This was more of a subjective process because we weren’t asked to look for distinctive traits or experiences. We were told to pick the ones we “liked.” I picked my favorites based on:

• Those with higher grades and relevant internships
• Those who had a profile similar to mine
• Those I knew personally (either directly or indirectly)
• Those who had done something so unique that I wanted to meet them in person

It is pretty hard to work on bettering your grades and landing internships once you graduate. Also, it’s challenging to fit your resume to match the profile of your reviewer because you never know who that person will be.

But you can definitely try to make some contact with existing employees and include something unique in your accounting resume so that everyone wants to invite you for an interview.

Find Your Accounting Resume Hook

I have seen quite a few “Miss Texas” and part-time models on accounting resumes. And while this is interesting, you run the risk of being interviewed by people who are only interested in what you look like. In my experience, my peers who selected models had almost no intention of providing the interviewee with an offer, regardless of how well they interviewed.

But if you have done something extraordinary, like you have set up a non-profit organization in Africa, this is a “hook” that almost always works to get people’s attention.

Also, a hook is much more impactful than a resume objective statement; these statements just take up valuable space on your resume, so go against your desire to include one.

Your Accounting Resume at The End Of The Day

We had 4-5 analysts reviewing the same stack of resumes, and our picks were often strikingly similar. That’s why most people either get no follow-up or lots of follow-ups from their resumes.

And if you’re pursuing big 4, discover how to make your big 4 resume shine. (Don’t forget what you learned here though — apply all the tips you can!)

Accounting Resume Objective: Is It Necessary?

The old school approach has always suggested an “objective” at the beginning of your resume, stating your desired job and field.

I am not a fan of this. Let me explain.

3 Reasons Why an Accounting Resume Objective Wastes Valuable Space in Your Resume

1.  No Need to State the Obvious

If you are joining a standard program such as those offered in Big 4, or management trainee program in the Fortune 500 companies, stating the objective is not necessary because, well, there isn’t much to say other than you are interested in joining that particular program.

There is no point saying the obvious and wasting valuable space in your resume.

2. You Said What You Want, But What’s Your Value-Add to the Company?

If you are contacting a recruiter for general positioning in the accounting department, then it *might* be helpful to say what you are looking for. Examples:

• Seeking a job in financial accounting to utilize my audit experience from Big 4
• To obtain an internship to gain experience in governmental accounting where I would like to specialize in

The problem is, while you state what you want from the company, you are not telling the reader why they want you. The recruiter only cares whether you are a good candidate for the company, not vice versa. That’s why I don’t think an objective statement will do you any good.

3. It’s Pretty Lame Anyway

It’s pretty hard to make an accounting resume objective sound impressive no matter how you frame it (because, again, it is a self-centered statement). If you can’t wow the recruiter, don’t bother.

Final Note

I understand that in some culture / country it is customary to put in such an accounting resume objective on your CV. If so, it’s totally fine; but if you are looking for a job in the US, I’d recommend that you skip it.

A cover letter is a much better way to express your interest to the firm. We will go through this in the next post.

Big 4 Hire Only Attractive People? Myths and Facts

Rumor has it that Big 4 hire only attractive people. How true is this?

Research Indicates a Bias

According to a research from the University of Michigan, beautiful people make more money. This “beauty premium” is comparable to the gap between genders and ethnicity. Another research from Australian National University reveals that taller people earn more, because they are perceived to be more intelligent and powerful.

People like to be around attractive individuals because they appear to be more “sociable, dominant, mentally healthy, intelligent and socially skilled” than their less appealing peers. These people have benefited for this bias for years, giving them higher levels of confidence.

Attractive People Perform Better at Interviews

Attractive individuals tend to be more confident, and likely perform better at interviews.

Also, people are naturally drawn to beauty and average looking candidates may be overlooked. Let’s say a recruiter met 100 students at a college fair. If everyone is equally smart, she is more likely to remember the tall, cute guy.

This is human nature and we have to accept this to some degree, not only in Big 4 but in every company in every industry.

What Exactly does it Mean by Attractive?

Let’s define the word “attractive”. It could mean hot-looking, charismatic or presentable.

Big 4 are business service firms. Interacting and soliciting business from clients is an important part of the job. Candidates who are smart, and at the same time good with people, are naturally their top choice. I don’t think Big 4 are looking for hotties. Instead, they prefer presentable candidates.

How to Look Presentable at Interviews

Are there ways to make ourselves more presentable? I think so.

1. Always Take Care of Your Appearance

This applies to the entire recruiting process, from attending the college fair to your final interview. No one expects you to look like an airbrushed model, but it helps to put some time into your appearance. Fair or not, right or wrong, it changes the way you are treated in many ways.

2. Work on Your People Skills

Firms look for people they can be comfortable putting in front of their clients. Think of yourself as the client. Whom do you want to see? Likely a well-groomed, cheerful and outgoing individual who are comfortable talking to different types of people. Does this person need to be physically attractive? It helps, but not a must.

Conclusion

Big 4 aren’t necessary going for good looks, but for those who are good with people.

Attractive individuals have the advantage of attracting people’s attention, but they also need to develop their social and communications skills to become top candidates for Big 4.

Therefore, if your face looks like a brick, you may have an uphill battle but bear in mind that Big 4 aren’t picking up hotties. If you overcome that with solid experience, professionalism, confidence, and great attitude, you can get hired with no problem.

What do you think? Any stories to share? Drop a note below.

CPA vs Accountant: Why the Qualification can Enhance Your Career

You may be wondering about the difference between CPA (Certified Public Accountant) and accountants in general… aren’t they the same?

Well, yes and no.

CPA vs Accountant: What’s the Difference?

Every CPA is an accountant but not all accountants are CPAs. I like to describe CPAs as  “Black Belt Accountants”, meaning that they have achieved beyond what a normal accountant does through advanced education, training, education and high ethical standard.

Let’s compare CPA to accountants in terms of education, experience and opportunities.

1. Education

The CPA educational requirement is the most demanding among all accounting and finance qualifications: you need to be in accounting concentration or have taken enough credit hours to demonstrate the same  level. Also, you must have at least a 4-year bachelor’s degree, and have taken 150 credit hours of higher education.

As a CPA license holder, people have comfort in your education level simply by looking at your title.

2. Experience

CPAs, not normal accountants, fill senior finance positions.

In light of the financial scandals in the past years, corporations have increasing pressure to only hire qualified professionals in order to uphold the accuracy and integrity of the company’s finances.

At the same time, for non-CPA accountants who move up to such senior positions after years of hard work, they are asked by the company’s board to “get the CPA done” within a year or they will be fired. I have more and more readers in this situation.

If you are young and have the time and energy to take on this exam, it is the best time to do it.

3. Opportunities

Your opportunities aren’t limited to CPA firms or auditing. The CPA qualification is the most recognized in the accounting field, so it is applicable and beneficial to any career related to accounting.

It could be the typical Big 4 route towards partnership, or it could be as different as a strategic advisor to an amazing start-up. You could specialize in tax in an investment bank to offer valuable insight in M&A structure, or be the boss by launching your own CPA firm. Sky is the limit in terms of what the CPA qualification can help in your future career.

Because of these reasons, accountants in different backgrounds are considering getting a CPA to enhance their credentials and income generation power. You can learn more about why you may also want to become a CPA here.

How to become a CPA

A CPA candidate has to go through 5 steps in their journey towards a CPA qualification. These steps are proof of their expertise in the following areas:

1. Advanced educational level
2. Accounting knowledge proficiency
3. High ethical standard
4. Working experience in related field
5. Commitment the Accounting industry

Because finding a CPA review course and CPA review discounts may be necessary as part of becoming a CPA, you may want to head over to my sister-CPA site to learn more.

For Your Further Reading

• What can accountants specialize in?
• What is public accounting vs non-public accounting?

Would You Like to Learn More about the CPA Qualification?

You may still be debating whether becoming a CPA is a good idea, but I am more than happy to help you along the way!

If you find this article helpful, please consider signing up to my mini-course, the most effective way for me to send you:

Upgrading Your Accounting Career

So you’ve been chucking along in your accounting career for a while. Things are fine, but you are looking for more… whether it’s more money, more challenges, and more interesting work, your career is probably due for an upgrade. Let’s take a look at how you can do it.

1. Switch to a Bigger Firm

Whether you are an auditor or a financial analyst in a company’s accounting department, you can always jump to a bigger competitor.

For auditors, it would mean switching from local/regional firms to national firms and the Big 4; for those working in non-public accounting, it could mean going from a regional company to a big, multi-national, Fortune 500 corporation.

So What Is The Benefit?

• Better pay and benefits – you can expect a small jump from your paycheck and a considerably better benefits package if you work for the big firms.
• Better job security – nothing is guaranteed, but bigger firms are usually better at riding through financial crises and bad times.
• Greater exposure – everything is bigger, more complex, and (arguably) more interesting. Not everyone likes this, but it is certainly attractive to the more ambitious accountants.
• More opportunities in internal transfer – transfers between departments are common and sometimes encouraged in these firms. It’s a great opportunity to keep your accounting job interesting and greatly enhance your exposure and networking within the firm. For the adventurous lot, you can even apply to an overseas post for a truly special experience.

Regional vs Big 4 Accounting Careers

If you are working in a “hot” industry and Big 4 is looking to expand that division, you have a good chance of success. But is the switching good or bad for you?

Here are the pros and cons of working in a regional CPA firm vs Big 4.

2. From A Public Accounting Career To The Corporates

If you look at the triangular structure of any CPA firm, you will not be surprised that most auditors will end up leaving public accounting and working somewhere else. Most of them will likely work with their former clients or related companies on the business side.

Depending on the size of the company and whether it is a private or listed company, your experience will vary greatly.

It could be a pretty stable job churning out monthly management reports and annual financial reports.

It could also be an exciting and demanding job with handling the books for multiple subsidiaries, supplying data to business units, legal, investor relations, and other divisions, crafting projections, answering questions from senior management, and working on ad hoc financing projects…

General tips are to pick a business sector that (1) you are interested in and (2) has a relatively good future. Then it could be a stable yet interesting job.

3. From Corporates To Public Accounting

The switch from corporate to public accounting is relatively rare. If it does happen, it is most likely at the senior level when the CPA firm looks for expertise in a particular business sector.

Suppose you started with public accounting and switched to corporate in the middle of your career when you accumulated enough experience and connections. In that case, you can certainly think about going back to public accounting by starting your own CPA firm.

As your own boss, there are more flexibility and upside, but it comes with the extra stress and risk that you need to consider as a business owner.

4. Get Into A More Specialized Field

Specialization often requires specific skills, which means that the job nature could be more interesting and likely more pay.

Therefore, as mentioned in point 2, it is important to pick the “right” sector so you can benefit from an interesting and lucrative niche when you gain the necessary experience.

5. Become A CPA!

As an accounting professional, I am sure you know how the CPA title demands respect from your family, friends, colleagues, and business partners. More importantly, as you move up your career path, either in public or non-public accounting, you need the CPA title to secure the job.

If you aren’t a CPA yet, chances are that you’ve thought about becoming one from time to time.

Why CPA?

Besides the respect, a CPA title helps you:

• Earn more – 10% based on a recent recruiter’s survey. Remember, it’s 10% every year
• Break into lucrative and specialized niches that open only to CPAs
• Keep your job – as you get promoted to senior positions such as controller and CFO, you may be asked to get a CPA qualification… or out. You better get it done sooner rather than later.

How Do I Become A CPA?

You can check out this beginner’s guide to pass the CPA Exam or a similar page written for candidates with international backgrounds. Good luck!

Consider Other Accounting Certifications Too

Once you become a CPA, you’ll find that it benefits your career in many unexpected ways. For instance, the IIA (Institute of Internal Auditors) offers the CIA (Certified Internal Auditor) credential. Normally, the path to becoming a CIA is lengthy and requires passing a 3-part exam. However, if you already hold a CPA, you can take the IIA Challenge Exam and take an expedited path. Plus, if you study with a course like the Gleim CIA Challenge Exam Review System you can gain your CIA qualification even easier.

If you don’t meet all the CPA requirements, don’t worry! Several other accounting designations could propel your career, too.

For instance, consider the CFA vs CIA. And if you might be interested in the CFA (Chartered Financial Analyst), you might be interested in the related SIE (Securities Information Essentials) exam. The SIE exam is for professionals interested in securities and financial advising, and candidates can also pass related “Series” exams. Furthermore, the SIE exam has a strong pass rate, especially if you use one of the best SIE exam courses, best Series 9/10 study material, or best Series 99 study guides to prepare.

Or you may also want to check out the Certified Management Accountant (CMA) designation. You can read how to become a CMA, receive CMA discounts, or get exclusive CMA discounts.

And if the CMA designation doesn’t work for you, the Enrolled Agent requirements are some of the easiest to attain. Basically, Enrolled Agents are specialized tax practitioners who have technical expertise in many areas of federal taxation. The IRS bestows the credential, which you can attain after passing a 3-part exam. However, the EA exam pass rates are higher than most other accounting credential exams, including the CPA Exam. What’s more, if you study with a review course, your chances of passing the EA exam increase even more.

To get started, check out Gleim EA vs Surgent EA to learn more about studying for the EA exam. You can also find EA review course discounts and the Gleim EA review discount as well.

Public Accounting vs Private Accounting: What’s the Difference?

Think of public accountants as “external” accountants who provides services to clients such as audit, consulting and tax planning services.

Then, think of private (non-public or corporate) accountants as “internal” accountants who work in a company, non-profit organization or a government agency. You can work in the financial accounting, management (cost) accounting, budgeting, corporate planning, treasury or in the internal audit department within the corporation.

How do I Choose between Public Accounting vs Private Accounting?

It largely depends on your career aspiration, strengths and personality.

For public accounting, you need…

Good People Skills. Public accounting is a client oriented business. This means that you need good interpersonal skill. For example, you’ll need to communicate effectively with your clients. It is also helpful to understand the client’s business and to request information for your analysis.

It may sound easy, but not all clients are willing to release all information. You need to be tactful and consistent to get the data and complete the audit work.

As you move towards partnership, you’ll acquire important skill in how to deal with difficult clients and maintain ethical standards and integrity at the same time.

Good Sales Skills. You need to solicit business for your firm, and this is people skill at the next level. Good sales and marketing skill (while keeping your professionalism) is critical if you aspire to become a partner or launch your own CPA firm

What’s Not-So-Good in Public Accounting

More Stressful Environment. Because you are dealing with a wide variety of people and demands, public accountant’s work is more stressful. On the other hand, private accountants work with the same group of colleagues and tend to have a more relaxed lifestyle.

Longer Hours. Because you work with clients instead of colleagues, the deadlines are often hard deadlines. Over-time and late nights are common especially for junior accountants. Other than the account-closing month, corporate accountants have more or less a 9-5 job.

Less Stability. While accounting job is considered one of the most secure jobs, the boom and bust of economic cycle does affect CPA firms as clients cut budget and corporate finance activities. Within public accounting, audit and tax teams are more secure than advisory teams for this reason.

What’s Great in Public Accounting

Better Exposure. Working in a public accounting firm expose you to a wide variety of projects, possibly in different industries. This is an unrivaled experience when compared to an accounting role in one company.

More Doors Opened. An experience in CPA firm (especially Big 4) is valuable for your resume. It is always easier to go from public accounting to private accounting than vice versa.

Bottom Line

Both public and non-public accounting can offer rewarding careers for students interested in the accounting field. There are lots of interesting CPA career paths as you gain more experience in your niche.

Further Reading

• Big 4 vs local firms: is big necessarily better?
• Is Big 4 experience worth it?