Intro to Accounting

July 17, 2024

Today, in 5 minutes or less:

🧑‍🎓StepStone Live M&A Simulation

🤝Intro to Accounting

📆Free Career Consultation

📺️ Content Picks of The Week

💼 Job Board

We hope everybody had a great weekend!

In today’s newsletter, we’re going to provide an overview of the world of accounting. During last week’s Intro to Accounting event led by Joey Peskin (former KPMG tax associate turned investment banker), Joey covered all things accounting, from the recruitment process to standing out in interviews. If you missed it or want to rewatch, check it out 👇️

StepStone Free Virtual M&A Simulation

📣Calling all students interested in investment banking! This virtual simulation, led by a real-world investment banking professional, will provide you with hands-on experience and a deep understanding of the M&A process.

You’ll earn a credential to boost your resume and gain valuable deal experience to discuss during interviews. Seats are limited and available on a first-come, first-served basis. Pre-register here to reserve your spot before spaces fill up.

Who are the big players?

The major players in accounting can be categorized into three buckets as seen below.

The Big 4

Deloitte, PwC, EY, and KPMG—collectively known as the Big 4—are the titans of the accounting world, delivering premier audit, tax, and consulting services. They offer the ultimate career launchpad for aspiring professionals, providing opportunities to work with Fortune 500 clients, gain global exposure, and build an unparalleled professional network.

The Next 3

The Next Three (a term coined by one of our coaches, Joey), are the next best firms in the accounting world, offering top-notch audit, tax, and consulting services. Although not as globally recognized as the Big 4, The Next 3 are still internationally recognized and regarded as top accounting firms.

Mid-size

Baker Tilly, CohnReznick, CLA, and Crowe are strong contenders in the accounting world, standing out with distinct strengths that give the Big 4 and The Next Three a run for their money. Although these firms may be smaller, they still offer high-quality accounting services and excellent pay for junior accountants.

What do these accounting firms do?

When you think of an accountant, what comes to mind? If the first image that comes to mind is someone buried under a pile of receipts during tax season, you’d be partially correct.

In the grand scheme of things, accounting firms play a much larger role than filing personal taxes. Accounting is a broad field (similar to finance) that encompasses many different verticals, each with different roles and responsibilities. Today, we’ll break down the three most common groups.

Bucket #1: Audit & Assurance

Audit or Assurance consists of the examination of the financial reporting of an organization, (typically presented in an annual report called a 10k), by an entity independent of that organization (the accountants).

The purpose of an audit is to form a view on whether the information presented in the financial report, taken as a whole, reflects the financial position of the organization at a given date.

Bucket #2: Tax

Not only do tax accountants file individuals taxes, but businesses, non-profits, and banks all file taxes and require tax accountants to help with their complicated financial situations. As a junior accountant, your responsibilities primarily will fall into two categories:

Tax preparation and filing

Tax accountants prepare and file federal, state, and local tax returns for individuals and businesses.

This involves gathering financial documents, calculating taxable income, applying appropriate deductions and credits, and ensuring all forms are submitted accurately and on time.

Tax advisory services

Beyond tax return preparation, tax accountants offer broader advisory services. This might include tax implications of business decisions like starting a new company, investing in real estate, or estate planning.

Bucket #3: Advisory

Advisory is typically not “pure” accounting like audit / assurance / tax, but more so accounting adjacent. In other words, professionals with accounting backgrounds work in these roles but some of the work may be outside the scope of traditional accounting. Within advisory, there are three areas accounting students mainly pursue:

Deal Advisory

Deal Advisory services focus on providing strategic guidance and support throughout the transaction lifecycle, including due diligence, M&A advisory, integration, transaction services, divestments, carve-outs, and corporate finance.

Risk and Regulatory

Risk & Regulatory services help organizations manage enterprise risk, enhance control solutions, offer accounting advisory, and conduct investigations and forensic analysis to ensure compliance and mitigate risks.

Valuation

Valuation services offer comprehensive assessments of corporate value, fund valuation, business modeling, economic advisory, and fairness opinions to support strategic decision-making and financial reporting.

Free Career Consultation

If you’re interested in learning more about careers in finance, book a free intro call and see how StepStone can help you discover and land your dream job!

🤝Coaching: Get personalized guidance from real-world professionals in the industries you’re exploring or preparing for

💡Cohort-Based Learning: Receive step-by-step guidance, join a supportive community, and develop essential skills—without the hefty price tag—positioning you as a standout candidate for top-tier investment banks

📖Free Events & Resources: Exclusive events led by professionals, interview guides, templates, and more

💼Direct Job Opportunities: Submit your resume to our talent pool and get noticed by top recruiters

StepStone Free Career Consultation - StepStone

We are excited to discuss how we can assist you in advancing your career. Book some time with us to explore the opportunities and resources we offer to help you achieve your professional goals. We look forward to connecting with you and supporting your career journey!

calendly.com/joinstepstone/consult?month=2024-06

We’ve Helped Students Land Jobs at:

What We’re Reading

What We’re Watching

What We’re Laughing At

Context: Finance bros are a rare breed and DO NOT miss an opportunity to flex. Odds are, if you know a first-year IB analyst who just received their bonus, they’ve treated themselves to something lavish recently.

Job Hub

Investment Banking

Solomon Partners -Summer Analyst | Chicago | Summer ‘25⭐️NEW

Consulting

Equity Research

Sales & Trading

Accounting

Corporate Finance

Rockefeller Capital Management - Summer Analyst, Fixed Income | NYC | Summer ‘25⭐️NEW

Real Estate

Private Equity

Growth Equity

Wealth Management

Diversity Programs