What’s the hierarchy in public and industry accounting ?

One response

1. In both public Accounting and industry Accounting, there is a hierarchy that typically involves several tiers of roles and responsibilities. Below is a breakdown of common job titles in each area along with a general idea of the career progression and timeframes involved.

   Public Accounting Hierarchy

   1. Entry-Level/Staff Accountant:
   2. Responsibilities: Assist with audits, tax preparation, and financial statement preparation.

   3. Time to promotion: Usually 1-3 years before moving to the next level.

   4. Senior Accountant:

   5. Responsibilities: More complex tasks like leading audits or engagements, supervising junior staff, and directly interacting with clients.

   6. Time to promotion: Typically around 2-4 years.

   7. Manager:

   8. Responsibilities: Oversee multiple engagements, manage teams, ensure deadlines are met, and maintain client relationships.

   9. Time to promotion: Usually 3-5 years, often requiring CPA certification, leadership skills, and significant experience.

   10. Senior Manager:

   11. Responsibilities: Oversee larger client accounts, strategic decision-making, and development of new business.

   12. Time to promotion: Typically 2-4 years.

   13. Partner/Principal:

   14. Responsibilities: Ownership stake in the firm, strategic direction, significant role in business development, and client relation oversight.
   15. Time to promotion: Typically 8-15 years, often requiring a strong track record in business development and leadership.

   Industry Accounting Hierarchy

   1. Junior Accountant/Staff Accountant:
   2. Responsibilities: Handling basic accounting tasks, including Bookkeeping, accounts payable/receivable, and assisting with financial reporting.

   3. Time to promotion: 1-3 years before moving up.

   4. Accountant:

   5. Responsibilities: General accounting duties, financial reporting, and analysis.

   6. Time to promotion: Generally 2-4 years.

   7. Senior Accountant:

   8. Responsibilities: Overseeing certain accounting functions, preparing financial statements, and leading initiatives to improve efficiencies.

   9. Time to promotion: Typically 2-4 years.

   10. Accounting Manager/Controller:

   11. Responsibilities: Managing the accounting department, ensuring accurate financial reporting, and compliance.

   12. Time to promotion: Generally 3-5 years for someone from the senior accountant role.

   13. Director of Finance:

   14. Responsibilities: Supervising the finance and accounting departments, strategic planning, and financial analysis.

   15. Time to promotion: 3-6 years depending on organization size and complexity.

   16. Vice President of Finance/CFO:

   17. Responsibilities: Overall financial strategy, risk management, and executive leadership within the company.
   18. Time to promotion: Typically takes 10-15 years, often requiring extensive experience in leadership roles and a strong record of management.

   Summary

   The timeline to move through these roles can vary considerably based on the individual’s capabilities, the company environment, industry sector, and market conditions. Gaining professional certifications such as a CPA (Certified Public Accountant) or CMA (Certified Management Accountant) can also significantly impact career progression. Networking, mentorship, and continuing education are also critical factors in advancing through these titles.

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