Whether you are graduating with a finance or accounting degree, or you have decided mid-career to change accounting firms, there are many reasons that professionals choose a small, mid-sized or large accounting firm.
First, let’s define small, mid-sized and large for the industry. A small public accounting firm is typically under $10 million in revenue and may have 50 or fewer staff. A mid-sized public accounting firm, or middle market as some call it, may be in the $10 million to $1 billion range of revenue and could have 51-500+ staff. A large firm, by contrast, is often what we refer to as the Big Four or the Inside Public Accounting Top 50, with revenues that start at $1 billion with hundreds or thousands of staff across the country and world.
That’s a big difference.
Choosing a firm is no longer about geographic location and compensation. More firms are hiring fully remote employees. This trend opens up more choice to new graduates and experienced professionals.
We won’t dive into work arrangements in this article. You can read about remote accounting jobs here.
Instead, we’ll summarize the common pros and cons when working at firms of different sizes.
Small Firms
Small firms are often focused on fewer niches or service areas, which may be an advantage if you want to dive deeply into tax law, accounting or an industry specialization. They usually have teams working directly with clients, which offers variety and a sense of purpose as you build those client relationships.
Another advantage of small firms is that your work is directly tied to business growth. Being a big fish in a small pond, you can feel a greater sense of purpose and ownership of the firm’s quality and client service.
At a small firm, you may be asked to get involved in networking, business development or technology enhancements. You can sample from a broader table of learning and training, which can give you a better understanding of how a business operates.
All of this may be beneficial if you are undecided about your career specialization. It can also help you understand how businesses operate, which leads to better client guidance. Professionals at small firms may experience a greater sense of autonomy as well as flexibility in their work, compared to mid-sized or larger firms.
The Cons – Small firms may or may not be limiting your accounting career opportunities. Discuss these areas during your interview to confirm or rule out these limitations.
- Resources – slower to adopt new technologies; smaller budgets for requested tools
- Compensation – cap on salary and benefits at certain levels of experience
- Career advancement – more time in between promotions or no option to advance
- Mentorship – fewer opportunities for mentoring by experienced staff
- Prestige – less name recognition for your next career move
Mid-Sized Firms
Mid-sized firms are a great option for your career if you prefer a large team, diversity in practice areas or opportunities to create your own niche career path.
These firms may have more than one location. They offer more resources and have complex clients with multiple needs. If you are assigned to a client, you can play a role in expanding the services to that client and becoming a subject matter expert. This opportunity can support your career advancement in public or private accounting settings.
A more personal work environment with mentoring and close-knit teams, you may feel more valued and supported in your personal life as well as in your career. You also have less competition for career advancement. You may get more flexibility to choose how you work, how many hours, and in what niches or specializations. As a mid-career employee at a large firm, it may be possible to gain a faster promotion by moving to a mid-sized firm.
The Cons – Mid-sized firms may have these drawbacks compared to small or large firms.
- Regional focus – limited by geography, resources and client preferences
- Office politics – internal power struggles or disputes distracting from the work
- Hours – higher demands by clients and deadlines, resulting in more hours
- Policy inflexibility – formal and rigid protocols, leaving less room for negotiation
- Limited global scope – less opportunity to engage international clients and projects
Large Firms
The Cons – Large firms have high expectations and rigid formality, which may lead to these disadvantages.
- Hierarchical – less personal across multiple offices; less contact with owners/partners
- Restrictive - placed on a career track with less opportunity to change course
- Layoffs – frequent hires with filtering process and layoffs for a variety of reasons
- Competitive – many people vying for the same role
- Relocation – required to relocate domestically or internationally for advancement
Overall, there is a lot to consider when choosing a firm, and firm size is just one of them. We hope that this broad overview is a start for your accounting jobs searches. Best of luck and let us know if you have any questions about what it’s like to work at LvHJ!
Next: Changing to Accounting Careers – from Anywhere
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