Subject: Seeking Guidance on My Career Path in Small Business Accounting
Hi everyone! I’d like to get some feedback on my current career trajectory.
I’m 26 (will be 27 soon) and have accumulated about five years of experience in Accounting and Bookkeeping. My focus has been mainly on small business accounting—I’ve never ventured into public Accounting and I don’t hold a CPA.
Current Work Situation:
- W-2 Job: I work remotely as a Staff Accountant, managing Bookkeeping, accounts payable and receivable, payroll, and balance sheet reconciliations for about 11 small business clients. The workload is substantial, but I appreciate the variety and learning opportunities it offers.
- Side Business: I also run my own Bookkeeping firm, generating approximately $30K annually from a few clients.
- Total Income: Altogether, I’m earning around $113K gross each year.
Where I Feel Stuck:
- I often come across discussions about pursuing a CPA or transitioning into public Accounting, and I sometimes feel out of place without that conventional background.
- I genuinely enjoy small business accounting and interacting with business owners, yet I wonder if I’m limiting my long-term growth by not pursuing a CPA or more specialized accounting roles.
- While I’m learning a lot in my current job, I know I don’t want to be in this role forever. However, I’m uncertain about when—or if—I should fully commit to growing my business.
Questions for You:
- For those who have experience in both small business and public/corporate accounting, do you think I’m missing out on crucial knowledge and experience by not pursuing the CPA/public path?
- Is there a limit to growth in small business bookkeeping/accounting, or can I scale my firm into a more profitable venture?
- If you were in my position, would you continue in the W-2 role for the experience, or would you fully invest in expanding your own business?
I would greatly appreciate any insights you can offer. Thank you!
One response
It sounds like you’ve put a lot of thought into your career path, and it’s great that you’re seeking outside perspectives! Here are some insights based on the points you’ve raised:
1. Missing Out on Key Knowledge/Experience
While pursuing a CPA can certainly broaden your technical knowledge and open doors in more corporate or public Accounting roles, it’s not the only path to success. Your experience in small business Accounting is valuable and can be very fulfilling, especially if you enjoy working directly with clients. Some small business accountants build incredibly successful careers without a CPA by focusing on what they love and honing their niche. You might not be missing out on essential knowledge if you’re continually learning in your W-2 job and side business.
2. Scaling Your Firm
There is definitely potential to scale your firm. Many small Bookkeeping businesses thrive and can be expanded through offering additional services, such as consulting, tax preparation, or even advising on business strategy. It’s worth considering what you could add or how you could specialize to differentiate your services. Networking with other professionals and leveraging technology can also help you expand your client base and improve efficiency.
3. W-2 vs. Going All-In
This decision largely depends on what feels right for you and your risk tolerance. Staying in your W-2 role can provide stability and valuable experience while you build your business. If your current workload feels sustainable and rewarding, it may be worth it to stay for the time being. However, if you’re feeling empowered and ready to make your side business your main gig, and if you have a plan for transitioning smoothly, then going all-in could be a thrilling next step.
Additional Thoughts:
– Consider setting goals for your Bookkeeping firm. If you’re aiming to grow it substantially, map out how you want to get there—whether that’s acquiring more clients, specializing further, or even recruiting others to help.
– If you have the opportunity, consider seeking mentorship from someone who has experience in both small business and public Accounting. They might offer insights that could help you assess your situation better.
Ultimately, it sounds like you’re in a good position to weigh your options. Trust your intuition and gather as much information as you can to make the best decision for you. Good luck!