Do accountants make good money and lead happy lives?
Photo by Ludovic Migneault on Unsplash
In Part 1 of the 9 Hard Truths About Accountants and Everything You Need to Know About the Philippines CPA, I shared the first four truths of being an accountant*. Here are the remaining five:
- What do accountants do all day?
- How many hours do accountants work?
- Do accountants make good money?
- Are accountants always stressed?
- Are accountants happy?
Truth #5: What do accountants do all day?
For simplicity’s purpose, I will cover only public and private practice here because they are the most common fields that fresh CPALE passers take on.
If you’re in a public accounting practice, the range of activities that you can do all day will vary among levels. In general, this is what you can expect:
If you’re in a private industry, this is what you can expect:
The depth of involvement will vary depending on your level and the complexity of the business. For instance, you can be doing an hour-worth of reconciliation for a simple client or you can be doing a week’s worth of reconciliation for a client with multiple subsidiaries and numerous revenue streams.
Being an accountant exposes you to a flexible range of roles and specialization. Even if you find yourself as an accountant without meaning to, you can pivot to another field depending on your skills and interests.
Accounting work is usually boring yet demanding…the beauty of being in this profession is that you have a lot of fields to choose from when you get bored. – Jasper Jay Rodavia, Filipino CPA (Philippines-based)
Truth #6: How many hours do accountants work?
It vastly differs depending on your position and which line of service and industry you are in. In my case, I am currently working as a Junior Accountant in a BPO firm. Work-life balance is highly promoted in our organization, so we usually have the normal 40-hour workweek. This is [because] we don’t exactly have a ‘busy season’ unlike in audit firms where accountants are expected to work extended hours during that period. – Sofia Pangan, Filipino Accountant (Philippines-based)
A friend once told me that no matter where you fall, whether it’s a busy firm or not, you’ll always find yourself busy if you’re a person who likes to work for long hours.
Historically, cultural norms in firms determine the hours that you work. In a public accounting firm, for example, you spend longer time in the office the higher your level and experience. On average, during busy season, you can expect a minimum of 60 hours a week.
In a private firm or industry, you spend long work hours during monthly closing periods that can vary between 1-2 weeks every month.
Truth #7 Do accountants make good money?
When you’re in the Philippines, a BIG NO, unlike what we usually hear when we’re in undergrad! Especially if you’ll be working in an audit firm. However, if you are planning to practice your career abroad, then enduring 3-4 years of small salary is totally worth it. Once you are an experienced audit senior in the PH, you can be a senior/ assistant manager or even manager abroad! Salary depends on what country you will choose but let’s just say that you can earn 6 digits every month!! So…I can say that accountants really make good money. You just need to have patience and endurance in your early career in the PH.- M**, Filipino CPA (United Kingdom-based)
Salary has always been a tricky topic not just among accountants. If you’re an accounting major expecting to be paid handsomely after gaining your CPA title, you’ll be disappointed. Even if you plan to search the local job boards for salary information, you will not get accurate information. Know that these job boards rely on the inputs of different candidates from varying roles and averages them. For example:
So when you see sites showing this much salary, don’t treat it at face value.
Without enough data, the inputs are not comparable and will often give you a skewed representation. If you want to make good money, you do not depend on the salary information that you see or hear from people. You use your skills to make good money.
With experience and exposure to the right opportunities, you can make good money by following any of these proven paths. It’s up to you how long.
- Stay in a local public accounting firm and get promoted to partnership roles. This still proves your parents’ claims that you’ll get rich by being able to sign audit reports. But being able to sign comes with a lot of risk and responsibilities so it’s not that easy after all.
- Gain international experience, in a public or private company. This is an option to take after gaining a minimum of 3 years of meaningful experience locally. This is the usual requirement by international firms who want to hire expats from another country, apart from your ability to deal with different cultures and nationalities.
- Build your accounting practice or your own business. You don’t have to sign audit reports and you don’t even need a CPA license. All you need are your bookkeeping skills, a business-savvy mindset, and the ability to attract and keep the right clients.
- Become a financial advisor. You will find a lot of accountants moving out into this career or doing it side by side with the profession because insurance and investments are understandable concepts to an accountant. If selling is your biggest skill, the pay-out can be huge.
- Get a side hustle along with your current job. If accounting is not your only asset and you have the time and expertise to start a legitimate side hustle, your earning power also increases.
- Combine one or more of the above.
No matter which you choose, you can start small but build consistently. Compounding does not only work for money. Getting rich as an accountant is a compounded product of your time and skills too.
Photo by Luis Villasmil on Unsplash
Truth #8: Are accountants always stressed?
“No, not all the time, but it will depend on the individual and circumstances. Just like in any other profession, there will [be] happy and triumphant times. There will also be times when you just want to scream at the whole world. Always savor the good and learn the lessons from the bad. Don’t let the past be a heavy anchor, move forward because there are better things that await.” – Auditor K**, Filipino CPA (Philippines-based)
Ask an accountant who goes into the office every day at seven in the morning and stays there until three am the next day. That accountant will give you a yes but he or she will still keep doing the job and practicing the profession.
Is he or she stressed or not?
This mental health article says that stress is triggered by life happenings which involve:
- being under lots of pressure
- facing big changes
- worrying about something
- not having much or any control over the outcome of a situation
- having responsibilities that you’re finding overwhelming
- not having enough work, activities, or change in your life
- times of uncertainty.
Not anywhere on the list above will you find the word “accounting”. But in a way, you’ve been used to tag an accountant’s job as stressful. In truth, any other job will stress you out if you allow your mind to dwell on it and if you experience any of the above triggers.
Accountants can get stressed with their jobs in all sort of ways but so can doctors, lawyers, or the daily garbage collector. It’s not the worst job in the world.
Truth #9: Are accountants happy?
On a philosophical level, being happy does not rely on material wealth. Just like any other person, accountants struggle to find happiness in both their life and their profession.
“The hard truth is, it doesn’t matter whether you’re a CPA, an engineer, lawyer, doctor, or a nurse, other countries seem to always recognize our professional value more than our own country and government ever will.
So my 2 cents advice? Take control of your future and hustle as hard as you can. We don’t get to choose where we are born, but if you work hard enough and create your opportunities, you will get the privilege of choosing where you spend the rest of your adult life and set a better starting point for generations after you. Pay it forward.” – Ex-Big 4 Audit Manager & Filipino CPA (Australia-based)**
Photo by Austin Distel on Unsplash
Final Thoughts
Whether you’re a forced accountant, an accountant by choice, or a temporary accountant, you will find yourself counting all the good stuff about being one. Of course, there’s the hard stuff, too. But whenever you find yourself getting bulldozed by all these hard truths, remain firm and hold your ground.
Through it all, remember:
- An accountant’s job is full of possibilities.
- Earning money as an accountant is a compounding effect of time and skills.
- You can be stressed whether you’re an accountant or not. It’s all in the way you handle your mind.
- An accountant can be happy in his or her own terms.
This article is Part 2 of a 2-part series that aims to provide millennials and gen Z accountants a preview of the Filipino accountant’s life. Read about the other truths in Part 1.
If you’re a university professor, a college senior, or an experienced professional who finds these articles as helpful guides, feel free to share it with your colleagues or students in the profession. Also, if you have questions or story ideas fit for AccounTINSolutions get in touch with tin@accountinsolutions.com.
*Not all accountants are CPAs but all CPAs are accountants. An “accountant” as used in this article refers to a Philippine CPA who is licensed by the Board of Accountancy to perform accounting per Philippine Accountancy Act of 2004.
**These accountants preferred to be anonymous.
