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Running Your Own Business: Interview with an Accountant

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Last Updated
26th of July, 2009

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Thank you very much to Avraham Deutsch, CPA, for participating in this interview. If you have additional questions, you can reach Avraham at alan@ardcpa.com.

Please provide a brief description of your field.
I am an American CPA specializing in handling tax returns and tax planning for Americans living in Israel, as well as servicing Israelis (or other non-Americans) who are required to file with the U.S. Government. Generally speaking, American citizens need to file tax returns as long as they have minimal income, while non-U.S. citizens have to file tax returns if they have investment-related income in the U.S.

How long have you worked in this field?
I’ve been working as an accountant for 25 years.

Did you work in this field prior to making Aliyah?
I worked in New York for two large firms (KPMG and Coopers & Lybrand) and then I worked as a senior manager in a smaller firm. When I came on Aliyah in 1993, I first worked for Kesselman & Kesselman (PWC) for a few years, and then I went out on my own.

What education do you need to break into your field?
I have a Bachelor’s of Science in accounting and a Master’s degree in taxation, and I also have an MBA in finance. I feel that the more education you have, the better equipped you are to handle the challenges involved in running an accounting business. Minimally, I recommend that you obtain a Bachelor’s of Science in accounting and a Master’s degree in taxation.

What skills or experience do you need in order to build the business that you have?
Building a business (of any type) involves more than just having the necessary education and understanding the technical aspects that need to be handled. There are a lot of interpersonal skills that are necessary, as well. For example, in order to succeed in the accounting field, you need to have the patience to listen to client’s concerns and deal with their issues.

Most accountants who make Aliyah don’t start their own businesses – most people go to work for accounting firms. Being a business owner requires that you are risk-oriented, and that you deal with a flexible schedule – sometimes 20 hours a day, sometimes 4 hours a day – and not everyone is cut out for that. You also have to be very entrepreneurial. You shouldn’t shy away from it and you shouldn’t be afraid to take a chance. Thank God it worked out for me!

I always wanted to go into my own business. Although I had a small practice in the U.S., I largely developed my business after moving to Israel, and I am grateful that I was able to do that here.

What type of training should someone making Aliyah come with, in order to break into your field?
If you are working for accounting firms overseas prior to making Aliyah, it may be preferable to work for small to medium-sized firms, where you can gain a more well-rounded type of experience. When you’re working in a larger firm you often get stuck in a very specific type of work, and you may not learn about other areas of accounting.

In addition, I believe it helps to come to Israel with prior experience running your own business. While you definitely can run a business in Israel without having similar experience overseas, it is harder.

I also have an MBA, and I learned from my degree that marketing is really essential to the success of a business. I try to use my education in the marketing area to the ultimate.

Does it make any difference whether you studied in Israel or abroad?
If you want to practice U.S. taxation in Israel, it is better to get an American education. However, learning the Israeli tax system is beneficial as well. For example, if you are working with a client who needs assistance with both U.S. and Israeli tax compliance and planning, you really need experience in both areas. A person who is running a business wants to be able to provide services for all types of people and situations.

In contrast, if your interest is in Israeli taxation or accounting as opposed to U.S. taxation, you would have to pursue that on the Israeli track and study here in Israel.

Is your field different here than in the U.S. and if yes, how is it different?
The systems of taxation are very different. The tax authorities are different, the laws are different. However, business is business wherever you go. Besides the technical aspects, the concept of running a business is fairly similar in each country.

A lot of people have fears about running a business because they’ve heard horror stories about Mas Hachnasa (Israel’s Income Tax Authorities). But the same horror stories apply to the IRS.

What is the pay scale one can expect in this field?
Everyone’s heard that salaries are lower in Israel than in the U.S., but how much you earn depends on your level of experience and is a function of many factors. You can make more money being self employed than as a salaried worker, but there is also more risk. It is very hard to start out being self-employed, and a lot of people who have good intentions end up realizing that it’s not for them. There is competition out there and you need to be especially flexible about what you charge.

Are there any upcoming areas of specialty that you would recommend?
I don’t recommend focusing on a specific area unless you are particularly interested in it. When you are running your own business, it is more important to have a wide knowledge base so that you can successfully service your clientele.

As a side note, accountants who are not interested in running their own businesses but who prefer to climb the corporate ladder will find that the opposite is true. It is more beneficial in the corporate world to have experience in large-scale firms where you can gain high level expertise in a very narrow area. You become the expert. For example, if you are interested in being a salaried employee and working in a more specialized area such as bankruptcy or accounting for offshore entities, hone your skills in that specific area.

What recommendations can you offer a student who is interested in working in this field?
I recommend a summer internship in Israel. There are several programs that offer this, and it is something people should look into. You can come on an internship program through Yavneh Olami, the Jewish Agency or by finding a placement on your own. I’ve had several interns work with me over the last few years, and I was able to give them solid work experience over the course of the summer. I’m happy to hear from people who are interested in a summer internship.

How do you feel about working and living here in Israel?
Every day I wake up and I say the prayer “Modeh Ani Lefaneha” expressing how grateful I am that I live in Israel. When I’m driving to different parts of the country, meeting with clients and seeing signs in Hebrew, it is a great thrill. Even 16 years later! If you dream about Aliyah, bring your dreams to fruition. It is not an easy thing to do, but it’s the right thing to do; you can succeed and have a great life here.

Any other advice that you’d like to offer?
Though I primarily speak English throughout the day, it is essential to have a high level of Hebrew. I took an Ulpan when I first came to Israel, and I took a second one about five years later in order to perfect my skills. In addition, my family regularly speaks Hebrew at the Shabbat table. There are a lot of forms in Hebrew that I must read and fill out in order to submit tax returns – for example, documentation from people who have Israeli wage slips, contracts and bank accounts. You have to understand what is being displayed on the statements or contracts.

There are also a lot of Israelis who don’t speak English well and who are more comfortable speaking Hebrew. I work primarily with Americans, but 15-20% of my clients are Israelis – a lot of Israelis have lived in the States and obtained citizenship and have to file in the U.S. I really enjoy speaking Hebrew, and I don’t shy away from it. If you want to be able to engage Israelis as clients, you have to be able to speak in Hebrew.

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