Debits. Credits. Taxes. Journal Entries.
These are just a of the few industry terms that come to mind you may think of accounting. However, accounting CAN BE much more than stereotypical work of booking entries, monthly close, reconciling balances, or preparing tax returns.
Accounting doesn’t have to be boring. However, let’s put this out front…
Accounting is NOT as sexy as some of the most prestigious careers in finance depicted in books or TV.
Most “accountants” are not jet-setting across the country, closing multi-billion dollar deals, or providing consulting services to F500 C-Suite Execs to help guide corporate strategy.
However, becoming a CPA is 100% worth the investment if you want to jump-start your career in accounting or move into finance.
Even though accounting might not be as glamorous as “high finance,” you may be able to find a niche that is both enjoyable and fulfilling. Every path in accounting does not have to be mundane or soul-crushing work.
There CAN BE light at the end of the tunnel for professionals who chose to pursue a career in the accounting profession. Plus, accounting can be a very lucrative long-term career!
First, let’s explore two broad categories of “accounting”
Accounting (like other professions) is a fairly broad vocation.
Just like a doctor specializes in a certain type of medicine or a lawyer focuses on a particular aspect of the law, “accountants” have a similar ability to focus on an array of topics.
For starters, most accountants have the ability to go into either “public accounting” or “industry.”
Public Accounting
Public accountants are like “hired guns.”
Instead of working directly for a company, these accountants work for a firm (or partnership) that provides services to other companies on a contractual basis.
For instance, a company may hire a public accounting firm to audit it’s financials or prepare tax filings. The public accounting firm has an army of professionals on staff that may work on multiple engagements (clients) throughout the year.
This is often a win-win for the public accounting firm and the client company. The company shifts the risk associated with adhering to complex regulations to the service firm. Further, engaging outside experts allows the company to focus on its core competency and avoid the overhead of an even larger accounting or tax department.
Is Public Accounting Boring?
Well… it depends. Public accounting firms provide a variety of services that may interest different people.
Audit
Auditors perform procedures to gain reasonable assurance that the financial statements materially are materially stated. Further, auditors perform testing around the internal control environment of public companies to ensure the processes of the company prevent a material misstatement from occurring.
Is audit boring?
In my years working in “Big 4” audit, I can say there were very few CPAs within the assurance line of business that “loved their jobs.” The pay was generally below industry and the workload required substantial overtime during “busy-season” when corporate filings were due.
For most that enter audit, their time is fairly short. The work quickly becomes repetitive and boring. Often, audit does not feel rewarding enough to develop the passion necessary to pursue a long-term career as an auditor.
However, those that do stay and make “partner” are richly rewarded. Even those who leave audit can find it is often a wonderful stepping stone to fast-track their career.
Audit and attestation will be boring for people who may strive for creativity or driving value in a different way. However, audit may be “the dream job” if you enjoy ensuring compliance and gathering evidence to support financial reports and controls.
Taxation
If you’re an accountant or CPA, chances are you get a ton of tax questions from friends and family around April. As we’ve established, not every accountant is an expert or abreast of current regulations.
Certain public accountants specialize in the tax laws and regulations of states and federal governments.
Not only do these CPAs prepare state and federal returns, they also advise their clients in how they structure transactions or their entity structure to ensure favorable tax treatment.
Is tax boring?
Often, tax professionals focus on both compliance and advisory work.
I would venture to say that most tax accountants enjoy the latter part of helping their clients effectively manage the rapidly changing regulatory environment.
Providing a service to clients that helps shape their strategy and impacts their business decisions can be valuable, interesting work for many who go into the tax profession.
For some tax accountants, preparing tax returns may be the “boring” part of the job.
Consulting
When companies buy or sell companies, they may engage a public accounting transaction group.
These specialized teams help companies with the financial due diligence needed to close a transaction. Once the transaction closes, they also help the acquirer integrate the business. A valuation group will help value the newly acquired assets so the acquirer can record the assets and liabilities at fair value.
Is Big 4 consulting boring?
Personally, this is the “least boring” part of public accounting.
While most of this work is not “management consulting” like you would find at Bain or McKinsey, it is certainly as “sexy” as it gets within accounting. Plus, an expensive MBA is not a prerequisite to break into this world.
As such, these groups tend to get a lot of inquiries from other groups. High-performing auditors often look to transition into one of these groups to move towards finance.
Public accounting consulting can be a happy medium between true “financial analysis” and the fairly mundane nature of accounting/compliance.
Plus, it can be a very easy way to transition from accounting to a lucrative career in finance.
Check out these 3 Proven Strategies for How to Transition from Accounting to Finance!
Industry
Corporations often hire armies of accountants and CPAs to record, analyze, and report on the thousands (or millions) of accounting transactions that take place.
Every time a company pays a vendor or receives a check from a customer, corporate accountants ensure the cash receipts or liabilities are recorded in the general ledger.
Monthly, these accountants prepare reporting packages to management. This allows company executives to assess business performance.
Public companies must issue quarterly and annual reports to stakeholders to allow shareholders to assess the performance of the business (and management). Accountants are integral to ensure the transactions are reported in compliance with Generally Accepted Accounting Principles (GAAP).
Is Corporate Accounting boring?
Much like public accounting, “accounting” within industry can be fairly broad.
Accounts payable clerks are accountants who process invoices all day. Technical accountants research publications and new standards to ensure the company is in compliance with GAAP. Accountants in the reporting group prepare monthly, quarterly, or annual reports.
Depending on your career aspirations, there are certainly differing levels of enjoyment among these roles.
Accountants in the reporting group may enjoy providing variance explanations to management to help them assess issues or improve the business. However, these accountants may cringe at the idea of booking journal entries.
By contrast, those who process payroll or journal entries may be perfectly content. They know their responsibilities and handle their allotment competently and appreciate routines.
Generally, the more complexity and variety, the more interesting
If you’re wanting to pursue a career in accounting but want to avoid boredom, look for more technical roles that help management answer complex issues.
Often, these roles require a fairly high “accounting pedigree.” These roles look for CPAs who have spent 3+ years at a “Big 4 Firm.”
While you may still calculate or submit journal entries (which few people enjoy), technical accountants spend most of their time as “internal consultants” for how to treat unusual, complex transactions. These transactions generally occur as a result of business combinations or changes in accounting pronouncements from the FASB.
In Summary: Is Accounting Boring?
Just like every other occupation, there are pros and cons to accounting. Not every minute of every day will rainbows and sunshine. Not every company will have a culture that promotes intellectual curiosity or offers an interesting work environment.
Plus, professional interests are very personal. This is something you must explore for yourself through internships and other real world experiences.
What one professional may find interesting, another may find boring.
Generally, most professionals go into accounting because it offers a stable, lucrative profession. However, most accountants find a certain level of interest in at least a portion of their work – even if these roles are within traditional accounting.