3 Proven Strategies for How to Transition from Accounting to Finance

After 3 years in Big 4 public accounting, I was ready to make a switch to finance. Accounting was never the long-term plan. However, for someone with my background as a Certified Public Accountant, jobs in accounting seemed to offer the path of least resistance.

However, I longed to stretch my skill-set by performing more analysis-oriented tasks. I wanted my work to provide strategic insights for my company. Most of all, I wanted to feel like I was providing value to my company.

Accounting just didn’t tick the box for my career aspirations.

After some time working with recruiters, I managed to land a role that valued my accounting background while also helping me develop other skills needed by financial analysts. After spending a couple of years in this hybrid accounting/finance role, I finally made the leap into corporate finance.

For me, public and corporate accounting was not what I expected. Sure, I enjoyed some of the work. However, the part of my work that I enjoyed most skewed towards topics in finance.

I never felt like my accounting-oriented work meaningfully contributed to my employer’s mission. Instead, I felt like a necessary evil – a “bean-counter” who was there for compliance rather than creating value.

By the time the work landed on my plate, the strategic decisions had been made. Our team was left to simply translate the outcomes of management’s decisions for financial reporting.

I knew I had to make a switch from accounting to finance in order to be happier and more fulfilled at work.

And truth is… I couldn’t be more happy with my decision!

Are you looking to make the switch from accounting to finance?

Maybe, you’re an accountant looking to transition from public or corporate accounting to a more “finance-oriented” role. Welcome to the club! Very few of my former colleagues saw accounting as a viable long-term option. It simply paid the bills with stable, uninteresting work.

Many business professionals with accounting backgrounds are looking for ways to re-tool or showcase their skills for interpreting financial data in a role that is more value-add.

Simply, you’re looking to do something that you feel brings more value than recording and reviewing entries or auditing financial statements. Likely, you want to explain the “why” behind trends and metrics. You want to paint the picture of where the business is going and help shape the strategic direction!

Finance can be more lucrative…

If you can develop a deep understanding of the business and help management understand “the why,” you can set yourself up to become an indispensable employee.

This will lead to your employer doing whatever it takes to retain you! Think about it… More interesting work. Greater flexibility. Opportunity to interact with executives and expand your network.

Further, many finance roles are highly valued by employers and command higher compensation.

Let’s be honest for a second, accounting is often seen as the “red-headed stepchild” of the business world.

Are accountants necessary? Absolutely. Is a career as an accountant stable and Can You Get Rich in Accounting as a CPA? You bet you can over your career for the right company.

However, accountants are generally treated like back office employees. The work CPAs do is important for financial reporting and necessary for management to assess business performance. Although, our work doesn’t often impact the long-term strategy of the company.

Often, our work and purpose is only given the time of day when financial errors (or frauds) are discovered.

Many in accounting are perfectly content to stay on the accounting track; however, this article is for those looking to make a switch.

Maybe, your long-term goal is to become Corporate Controller or the Chief Accounting Officer. If so, progressing internally and developing expertise in technical accounting will hopefully help you achieve your career aspirations.

On the other hand, if you’re looking to escape the accounting world, here are 3 Proven Strategies to Transition from Accounting to Finance.

1. Network, network, and network some more!

Expanding your professional circle is both the quickest and most efficient way to achieve the role you want!

In the current labor market, employers must do everything it takes to compete for talent. They WANT to hire you. However, they may just not know it yet because they don’t know YOU.

Can you apply for your dream job through the company’s employment portal? Absolutely. However, with the hundreds of resumes hiring managers must review, chances are yours will be overlooked in the process.

As Ken Coleman, author of The Poximity Principle: The Proven Strategy That Will Lead to a Career You Love explains, it’s not necessarily WHAT you know but WHO you know that can help you land your dream job.

Instead of applying for countless jobs, consider forming a genuine connection with someone in the organization or department you wish to work.

A genuine connection with someone can help you learn what areas you can improve when an opportunity opens up. Plus, a recommendation from someone already in that department can go a long ways in getting your resume to the top of the pile.

Maybe, the relationships you develop will even land you a phone interview. At the very least, this could be a courtesy to the employee who recommended you. However, this provides your opportunity to shine and showcase how you can benefit the organization.

Best places to network

If you’re in the accounting world, chances are that most of your connections are in a similar field or department.

Our natural network is made up of people within our immediate circle. It’s comprised of people we went to college with. It’s people on our immediate team, within our department, or that work on the same floor in the office. This means our connections are probably a lot like us.

However, if you’re wanting to pivot careers into finance, you need to find a way to expand your circle of colleagues beyond other accountants.

Leverage your current network

If you have an established relationship you can tap, offer to take them out for coffee or lunch. Perhaps, meet up for happy hour after work to “catch up.” Then, this will provide ample opportunity to pick their brain on your situation.

The first step can be finding current connections who successfully made the pivot from accounting to finance.

If you are unable to catch up over coffee or lunch, send a short message on LinkedIn explaining your situation. Ask them if they would be willing to talk and provide any insight on how they landed where they are. See what skills migrated from their role as an accountant that helps them shine in their new, finance career. Finally, see what skills they would develop today if they were in your situation.

Tapping existing relationships for people you know who shifted from accounting to finance can be a valuable resource on your career journey.

Join or volunteer with professional organizations

Involvement in groups and organizations outside of work can be a great way to expand your natural network. You probably have friends at church or a volunteer organizations who are working your dream job.

Chances are that they wouldn’t deny your request to meet for coffee or lunch if they know you from their involvement with a mutual organization.

Even if you aren’t yet connected, you can find a wide variety of professional organizations in your city.

Join a local economics or finance club. Join the local society of CPAs. You can even join the local chapter of the AICPA or your state’s society of CPAs. Even volunteering with a charitable organization like a local church, the United Way, or American Red Cross can provide the opportunity to meet other individuals who have the heart for helping people.

Professionals who are involved with these types of organizations obviously have a heart for giving back and helping others. More than likely, they would be willing to go out of their way to help you along your journey.

Identify recruiters who specialize in placing candidates in finance roles

Professional headhunters (i.e. recruiters) can be a great source for introductions to companies. Most recruiters specialize in certain occupations (such as accounting and finance).

Instead of hiring an entire department to identify, recruit, and attract talent, many large companies outsource this legwork to professional recruiters. For their services, recruiters receive a commission paid for completely by the company – NOT you.

These recruiters and firms often have extensive relationships with their clients. The candidate(s) they present are often seen as serious contenders as the recruiter has already vetted that you fit the profile. This can take you from being just a resume in a large pile of similar applicants to getting an initial screening.

However, you’ll want to ensure you connect with a recruiter who has a reputation as a career counselor. Since most recruiters are paid commissions based on the candidate’s base compensation, some recruiters may be incentived to get you placed elsewhere ASAP – even if it’s not a good place for a long-term career.

Finding an experienced recruiter who is genuinely concerned about helping you achieve your long-term career aspirations can be difficult. Consider asking around with colleagues who have made the switch for their recommendations.

Connections are often the best way to move from accounting to finance

Expanding your connections can be a wonderful way to network into your dream role.

The people you know who are working in finance can be a valuable resource to help you on your journey. They can provide introductions to companies or advice on how they landed their current role. If you’re lacking a certain skill-set, your friends and network in finance can offer guidance on how to improve or learn the basic requirements.

2. Find a hybrid accounting & finance role

Finding a role that requires both an accounting and finance background may often be the quickest solution to scratching that finance itch.

While you may still have certain accounting responsibilities or even still be in “corporate accounting,” this could be a reasonable compromise for those with expertise and tenure in accounting.

Instead of reverting to an entry-level finance position, a hybrid accounting role can help you maintain your accounting skills while helping you gain experience in finance. As you progress up the corporate ladder, you can either delegate more of the accounting work or even transition into a pure play finance role. (HINT: This is exactly what I did!)

There are plenty of finance roles that value individuals with an extensive accounting background.

Financial Planning & Analysis (FP&A)

Financial Planning & Analysis (FP&A) groups develop and monitor corporate budgets. Instead of focusing on historical financials, FP&A teams focus on the future performance.

FP&A Analysts provide forecasts to help decision-makers make the best decisions for the business.

A deep understanding of financial statements and accounting is necessary to succeed in Corporate Planning. After all, budgets are typically developed based projections of actual figures.

Further, understanding the relationship between the 3 financial statements (Income Statement, Balance Sheet, and Statement of Cash Flows) is necessary for free cash flow analysis. Managing and improving cash flow metrics is often a top priority of senior leadership.

For many CPAs looking for a more analysis-oriented role, FP&A can be a great segue to a career in finance. While accounting skills and experience is highly desired, you’ll also learn how to expand your repertoire beyond financial reporting.

Instead of living in the rear-view mirror, you’ll learn how to project actual results into the future to help management make strategic decisions.

Even FP&A is not the long-term goal, CPAs can gain valuable finance skills while leveraging their accounting expertise.

Transactional roles and/or valuation

Mergers and acquisitions (M&A) is a coveted role in traditional finance.

However, brokering and financing the deal is reserved for investment bankers who often have a concentration in finance, economics, and sometimes accounting. Many of these professionals also have advanced degrees such as an MBA from a respected program.

However, many accountants find themselves a part of the M&A process.

As part of the financial due diligence, CPAs are often hired for their opinions on the financial records of the company. They perform adjustments to “normalize earnings.” This helps provide a clearer picture of what the business can be expected to earn.

The Big 4 CPA firms also employ many CPAs and finance professionals in valuation advisory functions. These specialists perform valuations of acquired assets by preparing DCF models or by pulling market comparable transactions.

Even if you specialize in accounting, you can land a hybrid accounting/finance role that focuses in M&A.

There are even accounting roles that implement many finance techniques.

For instance, as part of purchase accounting, companies are required to fair value the assets acquired for financial reporting. Therefore, many specialists with an understanding of accounting for business combinations perform valuations internally for corporations. These CPAs specialize in technical and transactional accounting.

Landing a role in financial due diligence, valuation, or technical and transactional accounting can help you progress towards a career in a more finance-oriented role.

Business Analysts

Similar to FP&A roles, business analysts are often responsible for budgeting process within companies.

However, instead of preparing a long-term corporate budget plan, these analysts are often responsible for the day-to-day finances of a particular product or segment.

They perform detailed market research to understand the opportunity of a particular product. Business analysts project sales, provide detailed budgets for particular products and projects, and help manage expenses. They provide variance explanations and analysis to help management understand how a particular segment or product is performing. Business Analysts may put together presentations to explain to management the market opportunity for a particular product or line expansion.

Business analysts may also play an integral role as a liaison between the developers and marketers of a product and the accounting department.

Those that actually make or manufacture the product may not understand the accounting or business side. Similarly, those in the accounting department may not understand the product and its supply chain.

However, business analysts are expected to know the details of a particular product or market and will be able to communicate the business prospects to financial reporting and the finance groups.

Therefore, business analysts are expected to know a great deal about accounting, finance, and the operational side of product development. A role as a business analyst can be a great role for those looking to leverage their experience in accounting while developing other skills.

The bottom line on hybrid roles…

Hybrid roles will often be the fastest ticket to developing skills outside of pure accounting.

Landing the perfect hybrid role may not be immediate. However, your career will likely not be linear. Instead, your progression to achieving your dream job may take a few steps and pivots along the way.

Finding a role that leverages your past experience while helping you grow in an area of interest can be a great compromise as you work towards achieving your career goals.

3. Get Certified!

As an accountant, you may be thinking at first glance that becoming a Certified Public Accountant (CPA) will be the ticket to any job you want in business.

However, becoming a CPA often represents a first step. Employers want to see what other experiences you have when considering you for roles in finance.

Sure, having those three letters behind your name establishes to potential employers that you’re intelligent. Passing the CPA exam means you have an advanced understanding of accounting and financial reporting. You understand tax and the regulatory environment. You have a baseline understanding of business and economics.

These are all wonderful skills and the CPA helps solidify that you are above average intelligence and can conquer a difficult goal.

While passing the CPA exam is certainly the “gold standard” in the accounting profession, it’s also recognized in finance. Even if you have an accounting background, passing the CPA exam may at least get you noticed for certain finance roles. This could lead to opportunities you would not have had otherwise.

However, there are other certifications that can help you stand out when applying for jobs in finance.

Becoming a Chartered Financial Analyst (CFA)

If becoming a CPA is the gold standard for accountants, passing the CFA exam is the equivalent for finance professionals.

However, becoming a CFA cannot be accomplished overnight. Often, it’s multi-year process and can be quite an expensive undertaking.

Source: CFA Institute

However, for those who work in finance and become a CFA Charterholder, the financial rewards are worth the investment.

The average CFA charterholders earns total compensation of approximately $300,000.

Granted, this is after several years of experience and is dependent on industry/employer. Either way, achieving the CFA designation can offer ample opportunity to earn big bucks and further your career in finance.

If you do decide the CFA Exam is an undertaking worth making, showing progress can be a valuable signal to employers that you are serious about a career in finance. Even passing Level 1 of the exam can show commitment.

Potentially, even this could set you apart from other applicants that do not have their CPA license or have made any progress on becoming a CFA.

Achieving the Accredited Senior Appraiser (ASA) designation

If the CFA is too intensive (or unnecessary for your dream career), other designations could help you develop skills and signal to employers that you have potential beyond financial accounting.

Becoming an ASA can lead to career opportunities where assessing fair value is vital.

Valuation professionals are used by government agencies, banking and leasing institutions, financial and insurance companies or wealth management advisors. Virtually any company that needs to employee professionals to assess fair value can benefit from hiring an ASA.

Plus, ASAs earn meaningful wages. According to Payscale, ASAs earn ~$100,000. However, with further experience and seniority, you could expect meaningfully higher wages.

If your dream career in finance centers around appraisals or determining fair value, investing in obtaining a professional credential from ASA will set you apart from other applicants.

Other credentials offered by the AICPA

If you’re already a CPA and are looking for complementary specialties to expand your skill-set, the AICPA offers other designations that may fit your needs.

Source: AICPA

Depending on your area of concentration, you may wish to consider obtaining the Accredited in Business Valuation (ABV).

For CPAs, passing the two-part ABV exam will help you establish your expertise as a trusted valuation professional.

This can lead to lucrative opportunities where valuation and analysis is highly valued.

Bottom line on certifications…

On their own, degrees or certifications will not provide a direct path to landing your dream career in finance.

However, achieving respected certifications can be a great way to prove to potential employers that you have the necessary knowledge and skills to succeed in analysis-oriented roles.

Take Meaningful Action Today!

According to Gallup, nearly 85% of employees say they are not engaged in their work. With the average American spending nearly 90,000 or 1/3 of their life at work, it is simply unacceptable to “settle for a paycheck” in a job you hate.

If you are a current accountant or CPA who doesn’t enjoy their work, take action today that will lead you to landing your dream job.

Remember, your career will almost never be linear. It’s a steady progression and learning process. While your great-grandfather or grandfather likely touted being a “company man,” the job market today is much different. Opportunity abounds if you’re willing to take action – even if it means switching companies.

If you’re an accountant looking to move into the world of finance, you can land the career of your dreams by networking, finding a hybrid accounting/finance role, and expanding your knowledge base by obtaining other certifications.

These three things can prove invaluable to pivoting into financial analysis.