BIG 4 EXIT OPPORTUNITIES FOR TAX

Summary

In this video, Gabrielle, a tax manager at a Big Four accounting firm, discusses exit opportunities for tax professionals. She highlights three career milestones—becoming a senior associate after three years, a manager after five, and a senior manager at eight years or more—each offering unique opportunities to transition to roles like financial analyst, tax analyst, or even starting one's own firm. Gabrielle emphasizes the value of the CPA designation and the potential to reach high-level positions like VP of Finance or CFO, suggesting that broad financial knowledge and business acumen are key.

Takeaways

• 😀 Gabrielle is a tax manager at one of the Big Four accounting firms and discusses exit opportunities for tax professionals.
• 📈 The first critical career milestone is at the three-year mark when one becomes a senior associate, often with opportunities to transition to industry roles like financial analyst.
• 💰 After three years, professionals can expect a 10-25% increase in pay compared to their Big Four salary, but should consider long-term pay progression.
• 🔄 The three-year mark is also a good time to leave if tax or accounting isn't a good fit, as skills are still general enough to transition into other fields.
• 🏆 The CPA designation is valuable and provides core skills like business acumen and problem-solving, recognized in various industries.
• 🚀 The second key milestone is after five years when becoming a manager, which opens up more specialized tax roles and headhunting opportunities.
• 💼 Post-five years, roles like tax analyst, tax manager, or even tax planning specialist at banks become available, often with a significant salary range.
• 🛠 For those deeply specialized in tax, venturing into different fields might require a step back in terms of pay or position to gain pace in the new field.
• 💼 The third career milestone is at eight years or more as a senior manager, where roles like director of tax or partner become more attainable.
• 💰 Senior managers can expect a salary range of $120,000 to $200,000, with the real incentive being the potential to become a partner for higher earnings.
• 🏆 Aspiring to be a VP of Finance or CFO, CPAs should focus on broad financial knowledge and business operations, possibly complemented by an MBA.
• 🔗 For those interested in more information, Gabrielle suggests reading a blog post by Robert Half, a leading recruiter in accounting and finance.

Q & A

What is the main topic of Gabrielle's video?

The main topic of Gabrielle's video is discussing exit opportunities for tax professionals in the Big Four accounting firms.

What is the significance of the three-year mark in a tax professional's career at a Big Four firm?

The three-year mark is significant because it's when a professional becomes a senior associate, has completed the CPA exam, and has enough work experience to be designated as a CPA.

Why is the three-year mark a common time for professionals to leave the Big Four firms?

The three-year mark is a common time to leave because professionals have gained enough experience and there are many opportunities available with greater flexibility and higher pay.

What is a typical job role one might pursue after transitioning from public practice to industry?

A typical job role after transitioning from public practice to industry is a financial analyst position in an accounting or finance-related department within a company.

How much of a pay increase can one expect after the three-year mark when transitioning to industry?

One can expect a pay increase of 10 to 25 percent when transitioning to industry after the three-year mark.

What is the second key milestone in a tax professional's career according to Gabrielle?

The second key milestone is after the five-year mark when one becomes a manager, gaining more specialized skills in tax and becoming highly sought after.

What are some job opportunities available for a tax professional who has reached the manager level in the Big Four?

Job opportunities at the manager level include tax analyst, tax manager, or even tax planning specialist positions in industry, as well as roles in other public practice firms.

What is the salary range for tax professionals at the manager level in the West Coast of Canada according to Gabrielle?

The salary range for tax professionals at the manager level in the West Coast of Canada is around 100,000 to 150,000 dollars.

What is the third career milestone Gabrielle discusses for tax professionals?

The third career milestone is after eight years or more, when one becomes a senior manager or director of tax, with the potential to look towards partner roles.

What is the potential salary range for a senior manager or director of tax?

The potential salary range for a senior manager or director of tax is from around 120,000 to 200,000 dollars.

What is the incentive for a senior manager or director of tax to stay in their role according to the video?

The incentive for a senior manager or director of tax to stay in their role is the potential to become a partner, which can significantly increase their salary and status.

What additional qualification can boost a CPA's chances of becoming a C-suite member?

An MBA, in addition to a CPA, can make a professional invaluable and boost their skill sets to become a C-suite member.