Category: Career Center

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Tax Professionals Should Keep One Simple Thing in Mind When Assessing Their Performance

It’s getting to be that time of year, after all:

We’re doing reviews performance reviews, and the first item to assess is, “Knowledge and application of applicable accounting procedures and law.” First you check the appropriate box: Needs improvement; Meets expectations; Exceeds expectations; Far exceeds expectations. Then you have to write a comment. Here’s what I’ve got:

The Internal Revenue Code is 4,212 pages in 2 point font, I think the fact that I know any of it qualifies me to check the box – FAR EXCEEDS EXPECTATIONS

Other responses are welcome. Or send them our way.

How Does an Overachiever Stand Out From Other Overachievers During Big 4 Recruiting Season?

Ed. note: Got a question for Dan Braddock or anyone else on the GC advice team? Email us at advice@goingconcern.com and we’ll get to your query in due time.

Dear Going Concern,

I am currently a sophomore in college and am interested in a Big 4 internship (Chicago) for the summer of 2012. This means that I will be
involved in the heavy recruiting season this coming fall. I have a 4.0 GPA, am on my way to becoming Executive VP of Beta Alpha Psi, am a member of the Accounting Club, and have done some volunteer work. Any tips on how to stand out from the sea of other students just like me? Should I do anything else before recruiting season besides networking? Any advice would be appreciatedver

Big 4 Lover,

Glad to see that GC has some young people in the audience. Take what you read here with a grain of salt and shot of tequila – adulthood makes people cranky, not just public accounting.

Be cognizant of the fact that there are two versions of you that every recruiter sees: the version of you on paper and the version of you in real life. Either version can make or break your candidacy. Let’s break it down:

You on paper: At first read, the “résumé” you describe seems just fine – you’re maintaining strong grades while being involved in extracurricular activities outside of the classroom, even holding a leadership position. I wonder if your “volunteer experience” was only due to the Beta Alpha Psi volunteer requirement or if you do it on your own; either way, this is minor and I’m nitpicking for the sake of nitpicking. Any Big 4 recruiter will have your résumé sitting in their “yes” pile going into the fall recruiting season.

However, your résumé is strong on the “I am just trying to land an internship at a Big 4 firm.” What are your interests outside the realm of debits and credits? Unless you are a living, breathing calculator, I’d like to think that you have hobbies other than what is described above (this is assuming you did not leave any experiences out when describing your background above). I encourage you to diversify your experiences in college – not just for the sake of your résumé but for the sanity as well. VP of the Wiffle Ball Club? Great. Part of the campus sewing circle? Fantastic. Genuine, non-accounting extracurriculars will not only enrich your life but they’ll be great conversation starters when you begin meeting with recruiters and Big 4 professionals on campus.

You in real life: As you mentioned, you’ll be in the thick of the recruiting process this fall. Being that you’re only a sophomore (and probably on the 5 year track due to Illinois requiring 150 credits for the CPA), you’ll be interviewing for the “leadership” programs at the Big 4. These lead to internships which lead to job offers which lead to high-fives and back slaps for everyone. Here’s what you need to do when you meet the firms:

Do not regurgitate your resume – let your strong résumé speak for itself. No one likes a bragger, not even your mother.

Do not be too transparent – 99.99997% of Beta Alpha Psi members join the society because it looks good on a résumé. DO NOT TELL THE RECRUITER THAT. Unless you want to come across as an internship-chasing fool, then by all means go ahead and say so.

Do not suck up – There is a subtle difference between saying, “I’m only a sophomore, but I have heard positive things about your firm from my professors and older classmates and I’m hoping to learn more,” and “OMFG your company is so cool!!!”

Be yourself – you are more than accounting. The best people you’ll ever work with in the industry will also be much, much more than debits and credits.

How Should a Ex-Big 4 Intern Explain That He Snubbed a Full Time Offer?

Welcome to the Animal-Kingdom-to-Win-in-the-Preakness-edition of Accounting Career Emergencies. In today’s edition, a former Big 4 intern who turned down a full time offer wants to know how best to explain this snub to his new prospective employers without dragging his old firm through the mud.

Need help with a busy season break-up? Dealing with some crazies at your job? Do you feel ignored for your effohref=”mailto:advice@goingconcern.com”>advice@goingconcern.com and we’ll help you get some attention (or, at the very least, create a diversion).

Back to the Big 4 snub:

Hello,

I interned at a Big 4 tax recently and got a full time offer. My internship experience consisted of little work aside from fighting boredom and trying to find work. I was very disappointed with my experience, and to an extent, felt cheated. I was not expecting much as an intern, but I was expecting to learn at least a few things. Long story short, against the advice of people who say they have my best interest in mind, I turned down the offer.

I have a bad habit of not using my rear view mirrors when I drive, so I am not seeking advice as to whether I should beg for my offer back. My question relates to how I should approach recruiting in the future. Rule #1 is not to speak poorly of a past employer. Not sure how to get around that. Advice? Also, would saying that I was not happy with my internship hurt future opportunities due to the fact that it seems that few people full time seem to be happy (proven flight risk)? Should I leave this experience off my resume? My mother always told me honesty is the best answer, but then again she has been telling me I am special for the last 22 years of my life. Depends how one defines special perhaps.

Anyhoo, I am confident that I will land interviews in the coming season and I have connections with many firms who had extended me internship offers. I am just unsure how to go about explaining this little snag in a beneficial and professional way.

Thanks for any help.

Dear Momma’s Boy,

This is the first instance that I can recall hearing about an intern turning down a full time offer without another one in place. Your confidence in your decision is impressive but we can’t help but think that you had a slightly itchy trigger finger. But as you said, we’re not looking back. Onward!

You are correct that you should not speak poorly of your previous employer. Slamming your former firm for asking you to spend all day at the copy machine will make you sound petty, unprofessional and any prospects will immediately wonder how you’re talking trash about them once you’re out of their presence. Rather than get all mysterio about the experience, you should listen to your mother and be honest about it. But don’t focus entirely on the negative aspects of the internship; there has to be something you took away from it. Once you’ve described something positive (no matter how petty), you can explain why you turned the internship down. Just be careful to not make the situation personal. “It wasn’t a good fit” or “It wasn’t what I expected” is a far better than saying, “I was bored” or “I was smarter than everyone else” OR “I should be running that firm.” Keep it constructive and thought-provoking in when discussing it. Also, I would not leave the experience off your résumé simply because that misrepresents you. Best to go with honesty all the way.

So just keep your ego in check; did you turn a prestigious firm? Yes. Why? It was a decision made based a variety of factors and it wasn’t an easy one to make (even though it might have been). You’ll come off as contemplative and your integrity will be intact. Those aren’t bad qualities to have.

Big 4 Senior Associate with ‘Offers in Hand’ Wants to Ask for a Raise Without Sounding Like a Greedy Bastard

Ed. Note: Give DWB a warm welcome back to regular posting. If you’ve got a question for the advice column, email us at advice@goingconcern.com.

Good afternoon, everyone. Caleb must have tripped and knocked his sombrero-wearing-head last night, because he has invited me back for a weekly post. Regardless, I’m excited to be back. Let’s knock the rust off, shall we?

I am a 2nd year senior associate at a Big 4 firm. I like doing public accounting but am thinking that at my level and performance I am underpaid. I’ve several offers in hand but I do like what I am doing.

Now this does seem like a silly question – how do I go about asking for a raise without making it sound like that all I care about is money? In this economy…what are the chances that I am gonna get what I ask for?

Thanks a bunch!

You don’t specify whether your “several offers in hand” are for positions in the private sector or with other public accounting firms, so I’m going to address both.

Private sector – why are you interviewing with companies if you “like doing public accounting?” Turn these down.

Public accounting – you should be considering these offers if they are with another Big 4 firm. Do not go from Big 4 to mid-tier. Don’t have any offers with the other Big 4? See your own comments above and interview with the other firms. All four have problematic staffing issues this spring as the young guns continue to burn out. Sure, you’ll receive a nice little bump in pay when you transfer from one firm to another, but remember you’ll be down at the bottom of the networking food-chain.

Considering both the fact that you work at a Big 4 and it’s only a few months away from mid-summer raises and/or compensation restructuring, asking for a raise now will probably not lead to much. You work for an international firm responsible for more than 100,000 employees…you are one person. Granted, you are a second year Senior, which is one of the areas that all firms have a shortage at.

It also depends on your what practice line, your performance rankings and industry, as all of these factors play into how much leverage you will have. If you’re a top-ranked staff member with your CPA and on track to be a lead senior in the fall, your firm may toss you a $1,500 bone to keep you salivating for summer raises. If you’re more of the middle-of-the-road-and-I’m-studying-for-BEC type it would not totally surprise me if you were not given a raise or even shown the door. It would take the length of an episode of “30 Rock” for the word to spread through your office that all it took to get a bump in pay was to claim you had an offer from another firm. Leadership isn’t stupid.

Regardless of where you stand when compared to your peers, be absolutely certain you’re comfortable taking one of the offers you have should the latter situation happen. Your best bet is to wait until summer raises come through. The other firms will still be hiring experience staff in September.

How a Homeless High School Dropout Became an Accountant

Remember the story of the 48-year-old woman who took 19 years to get her bachelor’s in accounting? This is sort of like that except today’s protagonist was the family black sheep, a high school dropout, and lived out of her car.

29-year-old Jennifer Brown dropped out of Clackamas High (OR) her freshman year, spent some months in a group home and alternative school and spent the next several years working crappy jobs, alternating between her then-boyfriend’s house and sleeping in her car. By the time she was 25, she was working at a grocery store and realized she loved keeping the store’s books.

At 25, she got married and quit her job at the grocery store to pursue her educational dreams, enrolling full-time at a community college in San Diego. It took her three semesters before she could take math classes for credit, being placed in remedial math classes until she could be caught up.

Through the support of tutors and professors, she managed to maintain a 4.0 for two semesters before the family moved to Portland to be with her husband’s father, who was dying of bone cancer. From there, she attended Clackamas and Mt. Hood community colleges and Clark College in Vancouver to put together the classes required to transfer to the University of Portland’s accounting program. She kept up a 3.9 GPA, nailing “As” in classes like business calculus, statistics and decision modeling.

Brown will graduate from the University of Portland on May 8th with a bachelor’s in business administration. From there, she’s off to the University of Southern California, presumably for her Masters in accounting. She’s interned at Deloitte and mentored high school students like herself, at risk of dropping out or otherwise veering off the path.

Eventually, she wants to earn a doctorate degree and be a forensic and fraud auditor for the Securities and Exchange Commission.

Commence to calling her an underachiever in the comments, as is your wont, dear Going Concern readers.

As Oregon begins the college graduation season, nontraditional students take a bow [OregonLive]

Small Firm Associate Concerned Her Employer Is Turning into a Mini-PwC

Welcome to the let’s-dig-up-the-waterboarding-debate edition of Accounting Career Emergencies. In today’s edition, a young associate’s small firm is being overrun with PwC alumni. The firm now has a P. Dubs feel sans the P. Dubs prestige and our associate wants out.

Need some career advice? Do you (or a co-worker) need a business casual/professional makeover? Having a disagreement with a client? Email us at advice@goingconcern.com and we’ll send SEALs over to take care of it.

Back to our PwC-adverse associate:

Caleb,

I have been an ongoing reader of Going Concern for a while now. I need some advice and to know my options. I had an excellent internship with PWC alumni which landed me a job in audit at a small local firm the last year of school. I have since graduated college and enjoyed working at the small firm occasionally talking to recruiters but not really giving it much thought on leaving. Why leave 40 -45 hour work weeks non busy season and a 10% contribution to salary? Then my small local firm started hiring a group of PWC alumni to where it is now 75% ex-PWC.

They are taking over and making it feel like big four without the big four caliber of at least getting to list big four on your resume. So now I find myself wanting out of my small local firm and going else where. I still have 2 sections left to pass on my exam and I am not sure 2 busy seasons of experience but not even a year out of school really counts as an experienced candidate. Do you have any suggestions or career advice?

– Desperately wanting out

Dear Desperately,

Your concern feels a little reactionary. Surprisingly, not all PwC people send around misogynist emails, are workaholics or work their staff to death (debatable!). However, you do have a unique problem so I’ll see what I can do.

You are in a bit a jam since you don’t have your CPA and very little experience so I advise you to stay put at least until you get your CPA and you should really stay for at least one more busy season. If you leave, most likely, it will be a lateral move and you’ll be back to cubicle one. Not an ideal situation. Having said that, here’s why I think you should stay:

1. With all this PwC talent around, some of their expertise is bound to rub off on you. Lots of small firms don’t have Big 4 caliber talent at manager or staff levels so you can learn a lot from these people while you’re working with them. If you can’t stand them after one more busy season, at least you’ll have a little bit of their wisdom to take with you.

2. If you ever decide that you want to make a jump to a Big 4 firm (it could happen), these PwC alum are your ticket. They’ll still have friends and former colleagues at PwC and probably elsewhere and they’ll be able to get you in touch with the right people. Don’t forget that, whether you like it or not, these people are part of your network and you need to use that network when you can. If you bail out now, you’ll simply be a blip on their radar.

So get your CPA and stick it out one more busy season. Who knows, you may end up being completed satisfied working for mini-PwC. Good luck.

Hypothetical: Mid-tier Intern Concerned About Breaking News to Her Firm About Big 4 Internship

Welcome to the Justin-Bieber-is-trending-on-Twitter-again edition of Accounting Career Emergencies. In today’s edition, a young collegian has an internship with a mid-tier firm next busy season but still dreams of the Big 4. Currently, she’s in talks with one B4 for a shot at a coveted summer internship. If she lands it, how does she break the news to her firm?

Does your partner get bent out of shape over weddings and other fun things? Are you single, fat and a hypocrite? Looking for a big change in your career? Email us at advice@goingconcern.com and we do know of a terrorist organization that’s probably taking applications.

ANYWAY:

Hi GC,

I signed to do an internship with a mid-tier firm next busy season, and I’m pretty grateful for it. That being said, I still want to go the Big 4 route if possible. I have one recruiting season left before graduation, and I’ve been in some talks with one firm in particular that suggests I might have a chance at interviewing for a summer internship.

Should they make an offer, and I accept, how do I go about sharing (or not sharing) this with the other firm come next January? Should the mid-tier make a full time offer, how long can I wait before telling them yay or nay, just in case the summer one falls through? Am I shooting myself in the foot on this one?

Dear Two-timer,

We should all be so lucky to have a shot at two internships. Although your chances with the Big 4 firm aren’t a lock, this situation could prove tricky so I’ll go on the assumption (per your request) that you get the offer.

Now, then. My inclination is to advise you to not tell the mid-tier firm that you have a summer internship coming up, as it does not really your ability to perform work for them. Plenty of people have done two internships, so your case is not unusual and in my opinion, not necessary to tell them that you’re doing another internship in the upcoming summer.

That said, if you do decide to tell your mid-tier suitor about your Big 4 summer internship (I’m sure my advice has been ignored in the past) it could go one of two ways: 1) The firm likes you and they try hard to convince you choose them over those smug Big 4 bastards; 2) They’re on the fence and they reason “she’s got another opportunity coming up” and you’ll get cut right away.

So assuming you’re a likable, hard-working and don’t look like an absolute troll (you’ve got the internship, so this is unlikely), you’ll be in the enviable position of being able to choose exactly what you want. If the mid-tier firm makes you the offer, you won’t have a lot of time to decide (e.g. 30 days), certainly not before your summer internship is over. So if your experience at your mid-tier firm wasn’t so great, then your decision is easy. If you – gasp – really enjoyed it, then you’ll probably write us another email. And I’ll tell you to read this post.

Are Accountants Willing to Trade Salary for a Four-Day Work Week?

Apparently! Our sister from across the pond has gotten over their Royal Wedding hangover to report that two-thirds of “finance professionals” would take less money if they were allowed to skip one day a week:

It seems that finance professionals are getting a taste for a more balanced lifestyle after the recent spate of bank holiday weekends. According to a recent survey, two-thirds of accountants would be happy to give up some of their salary to enjoy a four-day working week.

A survey of 2,882 finance professionals conducted by recruiter Marks Sattin found that 66% of respondents were more attracted by the prospect of a four-day working week and would be willing to sacrifice up to £11,000 a year [about USD $18k] to achieve a better work-life balance.

Only 6% said they are less attracted to a four day week than this time last year, while just over a quarter of respondents said they felt no differently.

Marks Sattin managing director Dave Way commented, “Appetite for a greater work-life balance is a sure indication that people feel more secure in their jobs. Since the recession, people have had to knuckle down and work harder. But as the economy picks up and there is less pressure on employers to make redundancies, people are increasingly prioritising a work-life balance.

Of course what isn’t mentioned is that even with a four-day work week, a number of people would just end up working longer hours on those four days and would spend a portion of their free day checking email and other various work-related activities. In the Big 4 (and the rest of the top 10-20 firms) however, there are people who are completely satisfied with the status quo and others willing to give their lives for the firm, so there’s little chance that you’ll see a big shift in culture. That said, it’s a question worth putting out there – would you take less money to work four days a week? Tell us below.

Tax Intern Wants the Lowdown on Opportunities After a Stint in Big 4

Welcome to everyone-whip-out-those-birth-certificates edition of Accounting Career Emergencies. In today’s edition, a Big 4 tax intern is thinking about life after public accounting, just in case, you know, he hates it. Are there real options out there or will it be a choice between being a Big 4 partner and opening a H&R Block in a strip mall?

Looking for career advice from a complete stranger who may mock you in the process? Is a co-worker questioning your intelligence? Thinking about taking your talents to an archrival? Email us at advice@goingconcern.com and we’ll help you with your Benedict Arnold impression.

Back in tax:

I’ve accepted an offer for an internship in tax this summer with a Big 4 firm, because I’ve always preferred tax to audit as far as a career within the firm. However, I am starting to have concerns over my potential career outside the firm should I decide that I hate public accounting. Unless I were to make partner, it is likely that I will have to look elsewhere to continue my career.

What are the career options outside the firm for someone working in tax at the manager/senior manager level? What can I do to make myself a more attractive candidate? Should I try to get into a specialty tax group? Would my career in tax give me the skills to open my own CPA firm down the road?

I apologize if these questions have been answered, I’ve spent the better part of two days trying to get answers to some of these questions. Feel free to direct me to the answer if this is the case.

Dear Tax Intern who seems to be getting ahead of themselves,

You’re having career concerns and you haven’t even been shown your cubicle? That makes me think that you might also be stressing over the Mayan calendar but since you mention making partner, I suspect you’re not that crazy (or this crazy).

Anyhoo, I’ve got good news – there are plenty of opportunities for you both inside and outside your Big 4 firm. Hopefully you’ll get exposure to various groups within your tax practice during your internship and that will get you thinking about what aspects of tax you enjoy best. If you like compliance – wow, are you in for a treat. You’ll probably start out there but at some point you may be able to jump into state and local (aka SALT), an international tax group or M&A. There are lots of options, which is why tax is such a great career path. Personally, I feel a speciality group can be great experience but you may limit yourself for opportunities outside the firm. That said, there is something to be said for being considered an “expert.”

As far as opportunities after your career in Big 4, you’ll be able to take any expertise you’ve obtained to clients in their own tax department. Remember GE’s department is the best tax law firm known to man and other corporations strive for similar tax savvy; you could fit in nicely. Similarly, if you’re confident you can go out on your own and start a tax boutique firm, you might be able to provide specialized services for a fraction of the cost of other firms. You’ll probably need a couple of colleagues to take the risk with you and some capital wouldn’t hurt but it could pay off in spades in the long-term.

Any tax mavens with some years behind them are invited to share their experiences. Now if you’ll excuse me, I have to get back to mocking birthers.

Auditor Made Nauseous By Computer Screens Needs Some Options

Welcome to the Trump-backlash-has-begun edition of Accounting Career Emergencies. In today’s edition, a young associate has been humming a long except is have a strange physical reaction to staring at a computer screen (no, seriously) and needs some options. Luckily I can stare at a MacBook screen for about as long as I can gaze at pictures of Minka Kelly. Along with your help, I’m sure we’ll come up with something.

Annoyed with a know-it-all in your office? Looking to step up your competitive poaching? Concerned about disappearing act going on all around you? Email us at advice@goingconcern.com and we’ll explain how this thing called “life as accountant” works.

Back to our patient:

Hi Caleb,

I’ve been lurking on Going Concern for almost a year now. I must say thanks for keeping me entertained during stretches of unassigned time.

About me: I’m a first year auditor at a quickly growing mid-size firm. I’ve passed two parts of the exam, and life would be great if it weren’t for one thing – I’ve become unable to work in front of a computer monitor for long stretches of time. For the past 5 months or so I’ve dealt with daily nausea, dizziness, sweatiness, etc. in front of the screen. It typically begins around lunch time. In the past I’ve had no trouble with long days in front of a monitor, but now even scrolling through a PDF or toggling between excel sheets is too much.

I’ve tried everything I can think of to solve this problem and my doctor is stumped as well. I exercise, eat right (no, really), and have seen two optometrists who both came to the same conclusion – “your eyes are fine, take more breaks.” I don’t believe it’s stress induced, as I get the same effect browsing at home for fun. A weekend away from screens doesn’t help a bit. An MRI of the head/neck turned up nothing.

But I’m not here for medical advice (unless other heavy computer users have experienced this). My question is what the hell to do with my life. Dealing with this daily isn’t possible much longer, and it pretty much guarantees I won’t make it as a senior anyway.

I see lots of career advice on this site, but it’s always people looking for similar work. Do I have any hope of finding a new situation that won’t put me in the poor house? Has anyone made a drastic jump from accounting and landed on their feet?

I know it’s strange to ask about non-accounting careers, but perhaps people with accounting-type personalities have found other niches.

-Nauseous Staff

Dear Nauseous Staff,

This has to be the strangest reaction caused by a spreadsheet allergy that I’ve ever heard. I understand that you’e got a bit of problem though, however, so I’ll cease with the jokes (but no promises).

You say you don’t want to end up in the “poor house” and you’re certainly not doomed but this may take some creative thinking. The first possibility that came to mind is to get a job on your firm’s recruiting team or a professional recruiting job. You know the accounting business, the people and what it takes to be in it, so why not apply that knowledge to those trying to get into or change gears within it? You’d get a lot of human interaction (in person and on the phone) rather than staring at Excel all day and you’d spend a little more time on your feet (especially if you’re in campus recruiting). Obviously as a professional recruiter you’d earn much, if not all, of your comp based on commissions so you have to be cognizant of that change but you already know tons of accountants and so why not use your network to your advantage? You know they’re going to leave public accounting eventually.

The other possibility that came to mind is that of a sales job with a software company that offers accounting/auditing/tax/etc. software. This could range from the enterprise stuff (e.g. Oracle) to the basic (e.g. Intuit). You’ve probably had exposure to a few different applications and again, what you want out of software is probably similar to what other accountants want. Plus you speak their language so there would be very little disconnect when you’re discussing specific needs. Accountants hate amateurs. Because of your work experience, you’re anything but.

Obviously the problem is that these jobs will involve some time in front of a computer but it should significantly reduce the number of staring contests with your computer. If this doesn’t sound like your cup of tea, just go back to school and get liberal arts degree. You’ll meet cooler people and getting high will pretty much be mandatory. You’ll have to get over the money thing but you may end up happy just the same (no, it’s not impossible).

Anyone got experience with a similar malady? How did you deal with it? Are you now a street performance artist or do you simply take 30 minute breaks every 30 minutes which results in 16 hour days? Help this kid out.

Why Is Utilization Such a Big Deal at Public Accounting Firms?

As it’s only been a few days since we learned about the death of Pan Jie, the PwC auditor who died in Shanghai, many people are questioning everything, from high pressure culture within the Big 4 to this most recent contribution from the mail bag wanting to know why utilization is such a BFD:

Hey Caleb,

Been reading all the comments on the Shanghai PDub girl perhaps overworking to death, and everyone seem to have the same opinion on the same thing: overworking, but undercharging. And, this topic of utilization has really been troubling me since the first day I joined public accounting. So can someone care to explain why utilization is such big deal at the Big 4s??

I really don’t get it. Because ultimately, in my opinion it is purely a [key performance indicator] that is on paper, and is not a real depicting of a company’s financial performance. From when I last checked, the concept of OT pay is no longer applicable. So it’s not like by charging more hours, the firms are not paying me more and thus impacting their bottom line. Of course, if I need to bring on more people to the team to complete the audit, it may impact the bottom line for that engagement. And, also maybe there are the out-of-pocket expenses that you need to consider for employees beyond 8 hours. But I am sure [out-of-pocket expenses] during busy season will not break for audit budget. But besides that, everything is pretty much fixed, from the audit fee, staff’s salaries, expenses, etc. So I really don’t get this utilization game that management is playing.

Is my mind too simple, or can someone explain it to me?

Here’s my take on utilization – it partially factors into how firms determine if they’re getting their money’s worth out of employees. Say you’ve got two employees that are effectively the same (hours, performance, etc.) except one takes all five weeks of their PTO while the other doesn’t take any PTO. The difference of two hundred hours – on paper – shows that one employee is one creating 200 additional hours of value for the firm versus their co-worker who does not. If both of these individuals met their utilization goals for the year, then there’s really no issue. But if the five weeks of PTO taken by the first employee causes them to fall short, a friendly HR professional or performance counselor will have an easy decision as who should be crowned a top performer at evaluation time. Regardless of firms saying “we want you to take vacation” they want you to meet utilization goals first.

As for budgeting, depending on the engagement you may have wiggle room and you may not. If you’re serving a small client, regular late-night dinners could easily blow the budget and zap the realization, especially if you’re billing all the hours you’re working. So if you’re trying to make utilization goals but have a tight budget, you may have to cave on either charging all the hours or starving to death. Not an easy choice and is one reason why serving small clients can be a double-edged sword.

So essentially I agree with you, utilization is primarily a performance indicator and not much else. It simplifies the ability to determine someone’s value on paper. Low utilization indicates that you suck at your job or no one likes you. High utilization means you’re a workhorse and a team player. When it comes to cutting the weakest link, the decision is pretty easy. I admit that I’m far removed from the latest trends in determine valuable employees so veterans of the utilization game and people in the know are invited to chime in with theories on utilization and its usefulness (or lack thereof).

Can a KPMG Audit Intern Pull the Switch to Advisory?

Welcome to the tax-day-tease edition of Accounting Career Emergencies. In today’s edition, a young Brit has an audit internship with KPMG but would wants to pull The Switch and work in the advisory practice. Proposing a ménage à trois probably isn’t going to work so what’s the alternative?

Are you tired of being tired? Trying to build a celebrity client practice? Need some gift idea for your new overlords? Email us at advice@goingconcern.com and can recommend something other than a fondue set.

Back across the pond:

Dear GoingConcern Team,

Firstly I have really enjoyed reading your articles and as a budding/ aspiring accountant I was hoping you could help me. I got a internship offer for KPMG in audit which is great, but I think its likely I would feel more comfortable going into Advisory, probably Transactions and Restructuring branch of the Firm. Obviously I have to stick it out in audit for the internship, but is it possible to switch between service lines after, and probably location too?

I know that in the KPMG selection process I still need to go through the Partner Interview, so would you say I am potentially blowing my chances if I switch from Audit to Advisory, or should I play it safe, stick it out with Audit, and the ACA, and then transfer, assuming I passed and survived?

Thank you!

Dear Flip the Switch,

In the words of another, “Well, if I hear you correctly–and I think that I do–my advice to you is to finish your meal, pay your check, leave here, and never mention this to anyone again.”

Now maybe things are a little different in the UK but what you’re proposing is almost impossible to pull off and I’m not sure how you got in this situation in the first place. If the revelation that you’re more interested in advisory just came to you recently, that’s one thing. Your desire to pull a switch may be understandable but that doesn’t make it any more feasible. If, on the other hand, you accepted an audit internship with the knowledge that in reality you wanted an advisory internship, why didn’t you apply for an advisory internship?

On top of that you are also wanting to inquire about a moving to another office before you start full time? Let me see if I understand this correctly: you took an internship in a service area where you have no interest, in a location where you don’t want to live. Do you see why I’m confused? I’m not suggesting that you can’t ask but expect some side-eyed looks after you broach the subject. In other words, you could be “blowing your chances” because you sound like a person who doesn’t know what they want. These firms want people who are ready to hit the ground running, not someone who can’t seem to choose a path. If you can sit still for a year or three, then maybe you can start to inquire about a transfer of service line or location but as an intern-about-to-become-first-year, you’ll just sound like a lost puppy.