What's Best for Accounting Professionals - Practice or Industry in Canada

Whether you're a newly qualified accountant, a seasoned professional, or interested in getting started in the accounting sector, deciding between industry and practice accounting is a big decision. Both paths have their own unique advantages and disadvantages, so it's important to weigh your options carefully before making a choice. It just depends on the type of person you are, your interests, and what is important to you in your career.

Despite changing economic conditions, demand for qualified accountants continues to grow in Canada despite the difficult economic climate right now. Roles exist in both practice and industry.

Typically, accountants often start their careers working in practice before moving into a role in industry. However, there are many things you should consider before making a choice between practice and industry.

What is Meant by Working in Industry?

Industry accounting is when you work directly for a company, managing its finances and accounting needs. This could be in any sector, from retail to manufacturing to healthcare. Industry accounting roles often allow the opportunity to specialize in areas such as management accounting, financial accounting, and treasury management. This is a major positive for an individual who has identified a specific function they want to focus on. In an industry role, you'll be responsible for a wide range of tasks, including:

• Preparing financial statements
• Managing budgets and forecasts
• Conducting financial analysis
• Providing advice to management on financial matters
• Working with other departments to ensure that the company's financial goals are met

Potential Benefits of Working in Industry

• Variety: Industry accountants have the opportunity to work in a wide range of industries and sectors, so there's something for everyone making it relatively easy to choose a preferred industry, company, and location.

• Stability: Industry roles are generally more stable than practice roles, as you're working for a single company. An opportunity for in-depth involvement in the success of one organization rather than spreading work and expertise across several clients.

• Career progression:  The chance to make a standout contribution to the successful progression of the organization thereby building a reputation that aids career progression. There are many opportunities for career progression in the industry, and you can often move into more senior roles relatively quickly.

• Work-life balance: Industry accountants typically have better work-life balance than practice accountants, as they don't have to deal with the same level of pressure and deadlines

Potential Cons Associated with an Industry Accounting Role

• Progression may not be as easy as in practice which can limit earnings potential depending on the size of the organization you are working in.

• Moving from practice to industry might be a culture shock as it may involve going from being a member of a team of accountants to becoming the only accounting professional in the organization.

What is Meant by Working in Practice?

Accounting practices offer professional services to both public and private sector companies. This could include businesses of all sizes, from sole traders to large multinationals.

Practices range from top multinational firms to tiny firms, sometimes just a single accountant running their own business.

In a practice role, you'll be responsible for a variety of tasks, including:

• Conducting audits.
• Preparing tax returns and tax consultation.
• Providing accounting, assurance, actuarial, and advisory services to clients.
• Keeping up to date with the latest accounting and tax legislation.

Potential Benefits of Working in Practice

The main benefit that accounting professionals, especially newly qualified accountants, get from working in practice is the experience of working with clients across different industries. They gain experience in audit, taxation, and accounting advisory services.

In addition, the main pros of choosing a practice role are:

• Exposure: Practice accountants have the opportunity to work with a wide range of clients, gaining exposure to different industries and business models.

• Challenge: Practice accounting can be challenging and rewarding, as you'll be working on complex projects and solving problems for your clients.

• Learning and development: Practice accountants have access to excellent learning and development opportunities, as accounting firms invest heavily in their staff.

• Strong Networking: Interaction with valuable contacts which enables the creation of long-term relationships and networks.

• Role Variety: Varied roles allow individuals to develop well-rounded experiences and make informed decisions about potential future specialisms.

Potential Cons of Choosing to Work in Practice are:

• It can be difficult to work with demanding clients whilst maintaining polite professionalism.
• A work-life balance may be harder to maintain when working with several clients rather than concentrating on the requirements of one company in an industry role.

What Roles Can You Go Into?

The path you choose determines what roles you can expect to work in, and what work you will undertake.

Every firm and business are different but the following detail outlines what you might typically expect from progression in your accounting career.

Practice

Before qualification, if you work in practice, you will likely be a junior associate who moves into an associate role while you are qualifying.

On average, someone who has been qualified for around three years will move on to be a senior associate or manager. Sometimes you might take on the role of associate first, then be promoted to manager.

Finally, after five years or more, and depending on the firm you work for, you may have the chance to move up to director or partner level.

Industry

Working on the same timelines as in practice, industry accountants will start in the role of accounts assistant. While they are gaining their qualification, their role will be accounts clerk or admin.

During the final stage of qualification, individuals can become financial analysts.

After about three years of being qualified, industry accountants may move into the role of financial accountant and continue to see their salary rise. The next progression stage is the financial manager.

The equivalent of a partner in industry is either the head of finance or the CFO.

What's Best for You? Practice or Industry in Canada?

There is no right or wrong answer when it comes to choosing between industry and practice accounting. It's important to weigh up the merits and demerits of each and decide which best fits you considering your career aspirations, interests, and skills. Ask yourself a series of questions and locate what is important to you; is it the salary or the importance of the work you produce? Is it variety, people, or your day-to-day work-life balance?

If you are looking for a more predictable work schedule and better work-life balance, then industry may be a good choice for you. If you are interested in gaining expertise in a particular industry or advancing to a senior management role, then industry may also be a good option.

On the other hand, if you are looking for a greater variety of work, the opportunity to work with a variety of industries, or the potential to earn higher earnings, then practice may be a better fit. If you are also interested in starting your own business, then practice may be the only way to go.

How to Make a Move Between Industry and Practice?

When you're thinking about making the switch from industry to practice (or vice versa), there are a few things you can do to make the process easier:

• Network: Get to know people who work in the area you're interested in. This could be by attending industry events or connecting with relevant people on LinkedIn.

• Update your CV and cover letter: Tailor your CV and cover letter to the specific roles you're applying for. Be sure to highlight your relevant skills and experience.

• Prepare for interviews: Practice answering common interview questions and be prepared to talk about your skills and experience in detail.

• Consult a recruitment agency: Recruiters can give you advice on how to make the transition.

Final Thoughts

The decision to work in practice or in an industry has to be made based on what you want from your career. Don’t forget that you can always change your mind, although it should be noted that moving from practice into industry is much easier than the other way around. If you want to try both, consider going into practice first.

If you're interested in learning more about progressing in your accounting career, reach out to Get Trained Get Hired to book a free 30-minute career counseling meeting. At Get Trained Get Hired we provide you with the necessary training to learn practical skills to become an accountant and progress. Our training is based on practical real-life cases. After the training, we work on your resume and try to place you in accounting firms through our network. You will also get access to like-minded individuals who are looking for jobs through our WhatsApp group. Please feel free to contact us at [email protected]. Or call us at 647-276-7150.

Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your situation and is not intended to be used without consultation from professionals. Salman Rundhawa and Gettrainedgethired.com will not be held liable for any problems that arise from the usage of the information provided on this page