Pennsylvania CPA Journal
Four years after releasing his highly regarded book for students preparing for a career in accounting and those in the initial five years of their career, Jerry J. Maginnis has produced an updated second edition with significant new coverage.
Jerry J. Maginnis spent 36 years with KPMG where he was an audit partner serving a variety of clients and specializing in emerging growth companies. He led KPMG’s audit practice in Pennsylvania for five years and served as the firm’s Philadelphia office managing partner for the last eight years of his career in public accounting.
Since retiring from KPMG, Maginnis has served as an independent director and chair of the audit committee for the Cohen & Steers Mutual Fund Complex. He is also a board member and chairs the audit committee of inTEST Corporation, a publicly traded technology company. Additionally, Maginnis is senior adviser, strategy and growth, to the CEO and leadership team of Centri Consulting LLC and serves as the chair of Centri’s advisory board. He also served as president of the PICPA.
When Maginnis wrote, Advice for a Successful Career in the Accounting Profession,1 it was inspired by conversations Maginnis had with students while serving as an executive in residence at Rowan University after retiring from KPMG. He wanted to create a resource that would be helpful to students preparing for a career in accounting as well as those in the initial three to five years of their careers (a group he refers to as “early-career professionals”).
Updates to Match the Marketplace
Four years after releasing his highly regarded book, Maginnis has produced an updated second edition. This review centers on the expanded coverage and other revisions contained in the second edition. Significant changes in recent years have impacted both the accounting profession and the wider business community. Accordingly, there are new chapters that address remote work, artificial intelligence (AI), and the infusion of private equity (PE) in public accounting. The book also features a powerful chapter that explores lessons learned from the history of the accounting profession. The coverage of these topics is consistent with Maginnis’s presentations in the first edition – thoughtful, clear explanations designed to provide practical and actionable guidance.
The first new chapter addresses the evolving marketplace for entry-level accounting talent. Accounting professionals and academics are very aware of the “pipeline crisis” affecting the field, and Maginnis focuses on the period from 2019 to 2024. The demand for entry-level accountants exceeded the supply, and Maginnis details what led to the talent imbalance and explains the steps taken to address the crisis. He also notes trends that may impact future demand for accountants: outsourcing to other countries, using remote specialists, and increased investment in technology, particularly AI.
The chapter “Is Becoming a CPA the Right Path for You” has been updated to address alternative pathways recently adopted in many states. A new section outlines the content and structure of the revised CPA Exam. Consequently, a previous section on The CPA Evolution Project, which was instrumental in giving rise to the new CPA Exam, was removed. Maginnis also has added some practical tips and helpful resources for CPA candidates.
Most accountants were expected to do nearly all their work at the office or at a client’s workplace prior to March 2020 – the onset of the COVID-19 pandemic in the United States. Beforehand, some employers allowed remote work and flexible hours to accommodate younger accountants’ desire for work-life balance, but this was not a widespread phenomenon. COVID-19 altered how and where work is done. Multiple sources report that more than half of employees currently work a hybrid schedule. Of the remainder, there are more people working remotely full-time than those working exclusively on-site.
Maginnis describes the benefits of remote work (primarily from the perspective of employees) and the challenges (primarily from the perspective of employers). He proceeds to identify considerations that early-career accounting professionals should weigh in terms of career growth, and shares that there is an opportunity cost associated with working remotely. He recommends a minimum of three days of in-person work on a weekly basis. The chapter concludes with an abundance of advice, including best practices for remote work and the importance of face-to-face interaction, especially for public accountants working at client locations.
Bringing AI and PE into the Fold
Conversations surrounding AI are ubiquitous. Maginnis looks at the subject and shares how he sees the impact of AI on the profession. I learned much from this chapter, despite all that I have read and heard previously. Among the tips for preparing for and then embracing AI, one vital recommendation is mentioned several times – trust but verify. That is, do not become reliant on AI output without it being confirmed by review. However, he sees how AI can be very useful in validating one’s thinking and whether anything was missed. Maginnis illustrated his point by asking ChatGPT a question:
If I am a student preparing for a career in the accounting field or a young professional who has recently launched my accounting or tax career, what are some strategies and best practices I can implement to enable me to embrace AI tools? I have heard that AI may make some accounting jobs obsolete; how can I avoid that happening to me?
The response from ChatGPT included most of the points Maginnis had already written for this chapter or elsewhere in the book.
The complex and controversial subject of PE investments in accounting firms is a hot topic right now, and Maginnis addresses it with an expertise that provides a balanced analysis of both the benefits and drawbacks associated with PE. Like the chapter on AI, an abundance of background information is provided for readers who may only be casually aware of this trend. Examples include sections on how the PE business model works, the historical model for compensating owners/partners of accounting firms and what is used by PE-owned firms, and exit strategies. Maginnis devotes the remaining sections of the chapter to outlining important considerations for students and early-career professionals. The most prominent in this regard is firm culture and whether PE ownership will affect it. I admit that I approached this chapter with a negative view of PE infusions in accounting, however, I came away with an understanding of why accounting firm leaders might follow this path.
Remembering Our Roots
The full title of the chapter on accounting history is “Lessons Learned from the History of the Profession.” It is a powerful section that highlights accountants’ legal public responsibilities and instances of ethical lapses over time. The lessons to be learned – or relearned – about matters like serving the public interest, earning and maintaining trust and a good reputation, and embracing high standards of ethics and integrity are indeed timeless.
The updates contained in the second edition are not limited to the new chapters. Additional sections have been added in many chapters, especially in part two (Growing in Your Early Career Years by Mastering Important Fundamentals) and part three (Building on Your Success as Your Career Advances). Some of my favorites among these additions are “What about Social Media?”, “A Personal Value-Creation Plan,” “Adaptability: An Essential Success Trait,” “Don’t Waste Your Time Comparing Yourself to Others,” and “Take Your Vacation Time.”
As was the case with the first edition, the beauty of Advice for a Successful Career in the Accounting Profession lies in its format, which presents an easy and enjoyable read. Every chapter begins with a key takeaway, and many chapters address a myth on the topic addressed. Each chapter concludes with a personal anecdote from the author’s life inside or outside of accounting and some “food for thought” – an appropriate, incisive quote from a famous figure.
The newly introduced chapters covering subjects such as AI and PE bring rigor, yet they consistently maintain the formula that makes the book easy to read. In my review several years ago of Maginnis’s first edition, I wrote:
Jerry Maginnis has written a book that should be on the bookshelf of anyone in the accounting profession, from interested students to experienced practitioners. Advice for a Successful Career in the Accounting Profession is a treasure trove of practical advice.
Anyone embarking on or engaged in a professional career will be exposed to valuable insights. Beyond that, the book offers great advice for life in general.
1 Learn more about Maginnis’ book.
David D. Wagaman, CPA, is professor emeritus in accounting at Kutztown University and a member of the Pennsylvania CPA Journal Editorial Board. He can be reached at dwagaman@emeriti.kutztown.edu.