Training Contract in Practice Almost Complete? Should I Stay or Go?

Congratulations!!! You’re a newly qualified accountant, you’ll soon complete your training contract, the world is at your feet!  So what should you do next? Do you stay and continue your career in practice?  Or, should you leave and make the jump into industry?

With 100’s of newly quals getting in contact with us every year, we see some that would have benefitted from staying a little longer in practice equally, there are plenty who we’ve met who may have benefitted leaving sooner than they did. It feels like you could almost write a 10,000+ word report on what to do next! When considering your future, here are a few points we think you should consider when weighing up your options.

What’s the rush? 

For some, the desire to leave practice and move into industry at the earliest opportunity will be burning. Perhaps you don’t see your long-term future in practice and are bored with the work, wanting to move into the more “exciting” world outside.  If this feeling is familiar, then making a move could be your best option.

On the other hand, you’re only at the start of your career and you’ve got c.40 years of working life ahead of you (don’t let that depress you too much!). Postponing your move by 6-18 months may not be the end of the world, it’s not a great deal of time in the grand scheme of things! Regardless of when you take the leap, wait for the right opportunity. Better to wait and secure the right move, than move too fast and secure the wrong one!

The case to stay (even if only for a little while longer)...

Many newly qualified candidates we meet don’t appreciate the continued development, skills and knowledge they can obtain by staying in practice after qualifying. In our experience, the opportunity to learn is still very good for the immediate 6-18 months. 

You’ll plan and manage more assignments, you’ll get more Partner interaction and you’ll liaise more directly with clients and senior level contacts.  In many respects this develops your management and softer skills more than your technical experience, which is no bad thing and a potential differentiator when you do eventually move.

Other Things to Consider.

Timing: September-December is usually a great time for newly quals to make a move.  Companies are hiring, your workload is more manageable, and it allows you to make your move ahead of the busy season starting early next year.

Development and progression changes in industry. You’ve just completed a very tried and tested route to become qualified.  A structured training programme that provides practical experience, combined with studies that lead to a world-renowned qualification.  The learning and development changes in industry, not necessarily in a bad way, it’s just different. Often, it’s less structured and the promotion path, whilst still there, isn’t always as clear or as neatly outlined.

Don’t Accidently Stay Too Long. Because accountancy and the audit world are very cyclical, time can pass very quickly without you realising.  Before you know it, you’re heading towards the end of the year, another busy season comes along and the search gets put on the back burner.  You then hang on to see what happens with promotions / transfers and before you know it you’re almost through another year!  It’s not easy juggling a job search with the day job, but it will get to a point when you’ll need to make time and secure that move.

Salary expectations. Broadly speaking most newly quals will receive a salary increase to c.£46-48k once you’ve completed your training contract.  The salary you can expect with a move into industry is usually c.£50-55k.  This represents a decent uplift, especially considering your training contract salary.  However, the longer you stay in practice doesn’t necessarily mean your value in industry continues climbing.  Someone with 1-2 years PQE in practice could still be looking at a salary of c.£55k when they move to industry, as you’re still embarking on your first role in industry. 

In summary;

• Don’t be a sheep – just because others are doing it, doesn’t mean you should!
• Better to wait and secure the right move, than move too fast and secure the wrong one.
• Seek advice from knowledgeable sources.  Talk to others; peers, your managers, former colleagues, knowledgeable / trustworthy recruiters etc.
• Consider the medium to long term career plan.  Like a game of chess think 2, 3, 4 moves ahead.
• Don’t move just for more money, take the right opportunity.

There is no set template that you can follow when making important career moves.  It might be easier if there were, but it would also be a lot more boring.  Only you can really decide what feels best and what is right for you.  We’re all individuals after all! 

The vast majority of those who train in practice will usually leave within 0-3 years of qualifying.  And there is always strong demand for you in industry.  When you make that leap is up to you and if you need guidance or advice we would be happy to help.

Get in touch with Director Mark Thomas, Associate Director Liz Wood or Senior Consultant Jonathan Way for more help in your job search as a newly qualified accountancy professional.