Public Accounting and the Public Accounting and the Indiana University StudentIndiana University Student

September 25, 2003

Indiana University

BKD, LLP

OverviewOverview

I. Public vs. Private Accounting

II. Regional vs. Big Four Accounting Firms

III. What Recruiters Look For In College Recruiting Candidates

IV. Typical First Year Responsibilities

Public vs. Private Accounting

• Public Accountants – Perform a broad range of accounting, audit, tax, and consulting activities for corporations, governments, nonprofit organizations, and individuals.

• Private Accountants – Record and analyze the financial information of the companies for which they work.

• First Job Statistics: (CPA Journal)

– 55.8% Public Accounting– 30.1% Private Industry– 8.2% Governmental and Not-for-Profit Accounting– 5.9% Other Accounting

Public vs. Private Accounting

• Public Accounting– Assurance

– Tax

– Consulting

• Ease of moving from public accounting to private accounting• Occupational mobility• Variety in:

– Type of work

– People you interact with• External• Internal

Public Accounting Career Track

 Partner

 

Staff ConsultantStaff

  

Senior ConsultantSenior

  

Supervising ConsultantSupervisor

  

Managing ConsultantManager

  

Senior Managing ConsultantSenior Manager

  

ConsultingAudit & Tax

  

  

Public vs. Private Accounting

• Private Accounting• Financial Reporting

– Corporate Finance• Treasurer

• CFO

• Controller

• Managerial Reporting– Cost Accounting– Internal Audit– Business Development

Public vs. Private Salaries (Source: Indiana CPA Society)

Regional vs. Big Four Accounting Firms

• Regional Accounting Firms– Client Base:

• 95% medium to small

• 5% large (most SEC)

– Many jobs that are shorter in duration– Wide variety in types of clients– Travel is limited, but available if desired – Making Partner

• Average length of time is 12 years

• Chances are 1 out of 20

Regional vs. Big Four Accounting Firms

• Big Four Accounting Firms– Client Base:

• 85% large corporations (most SEC)

• 15% medium to small

– Fewer jobs that are longer in duration– Less opportunity for exposure to wide variety of clients– Significant travel – Making Partner

• Average length of time is 18 years

• Chances are significantly lower

• Upper level partner’s compensation (Equity and Non-Equity)

Public Accounting Report’s Top 10 for 2003

U.S.

Net Revenue Number Number Revenue Split

Firm (in millions) of Partnersof

Offices A&A Tax MCS

1 Deloitte & Touche (New York) 5,900.0 2,618 81 36 21 34

2PricewaterhouseCoopers (New York) 4,715.0 2,027 113 59 29 9

3 Ernst & Young (New York) 4,515.0 2,118 86 59 38 0

4 KPMG (New York) 3,170.0 1,535 122 63 37 0

5 RSM McGladrey (Minneapolis) 580.0 498 86 40 38 20

6 Grant Thornton (Chicago) 400.0 312 51 50 34 16

7 BDO Seidman (Chicago) 353.0 281 37 41 41 18

8 Crowe Group (Indianapolis) 247.3 104 16 24 19 57

9 BKD (Springfield, MO) 215.7 194 27 42 36 22

10 Moss Adams (Seattle) 175.0 182 24 33 38 29

What Accounting Recruiters Look For In Candidates

• Communication skills• Enthusiasm• Creativity• Problem solving ability• Teamwork skills • Highly motivated• Excited about the firm

Typical First Year Responsibilities

• Audit– Observe inventory test counts– Perform tests of internal controls– Draft financial statements and auditor’s reports– Develop recommendations for improving client productivity – In-charge some smaller engagements

• Tax– Prepare individual, corporate, partnership, estate, trust, and tax-

exempt entity returns– Draft responses to federal, state, and city notices from taxing

authorities– Research tax issues– Prepare tax projections under multiple income and deduction

scenarios

Any Questions?Any Questions?

Tony Gerdt tgerdt@bkd.comSean Barr sbarr@bkd.com

Thank you!