To advance in the public accounting sector, you’ll have to obtain the CPA certification from a state board by passing the CPA exam. Public accountants undergo training to acquire the skills necessary to analyze the accounting systems and validate their financial disclosures. “Private accountants’ daily activities revolve primarily around management reporting.

• Public accountants typically provide auditing, tax preparation, and financial consulting services.
• The Institute of Management Accountants offers this certification, designed for professionals who work with a company’s financial information to develop strategies for its future success.
• Furthermore, private accountants enjoy a more casual working environment than their public-sector counterparts.
• Prior to joining University of Phoenix, Kathryn taught fifth grade to underprivileged youth in Phoenix.
• According to the most recent data from the Bureau of Labor Statistics, the median annual salary for public accountants was $63,550 in May 2016, while the median annual salary for private accountants was $69,350.
• Take the time to carefully weigh the pros and cons of each path and consider how they align with your goals and preferences.

Diverse experiences

Students with eligible credits and relevant experience on average saved $11k and 1 year off their undergraduate degree with University of Phoenix. University of Phoenix is a terrific online school choice for those who have a busy life, but still want to pursue their career.»

If you’re interested in pursuing a career in accounting and want to learn more about this career path, consider exploring our programs and take the first step toward your future in accounting. However, both types of accounting require knowledge of financial laws and regulations and strong mathematical and analytical skills. They also develop deep financial knowledge of their employer and their industry, which makes them an invaluable part of the team. Are you looking for an oversimplified yet comprehensive comparison on public vs private accounting?

Public Accounting Careers and Salary Expectations

Public accountants work at a third-party firm and work with clients to review and prepare financial documents that are required to be disclosed to the public. At the simplest level, public accountants work to verify financial documents, reports, and disclosures from an outside perspective. They may help prepare tax returns for individuals and organizations, perform audits public accounting for companies, consult, and advise on tax and financial matters. Public accountants work for a third-party firm that is hired out by businesses and organizations to evaluate their finances. Thus, the allegiance of the public accountant actually belongs to the public and to the general ethical and professional standards promulgated by the accounting public vs private accounting profession.

Is there a pay difference between Public and Private Accounting careers?

The work environment is another significant difference between public and private accounting. For those in public accounting, the senior position would be as a business owner or firm executive. The next step in the career trajectory typically involves becoming a manager, overseeing teams, and handling a broader range of clients while ensuring compliance with regulations.

• By understanding these key differences, you can make a more informed decision about your future in accounting.
• This difference means that public accounting requires more technical knowledge than private accounting due to the complexity of GAAP or IFRS reporting.
• Accountants advise on areas such as implementing business strategies, developing a business plan, or expanding an existing business.

To become a full member of AICPA, the applicant must hold a valid CPA certificate or license from at least one of the fifty-five U.S. state/territory boards of accountancy; some additional requirements apply. This 15 course, 45 credit hour program leads to a Master of Business Administration degree with a certificate in public accounting. The Public Accounting concentration is designed for students who are intending to take the CPA exam and practice in public accounting. Employment opportunities include auditing and other attest engagements, taxation, forensic accounting and client consulting.

Other Careers

The good news is that both public and private accounting firms hire similar types of talent. Another key difference is that public accountants are required by law to follow specific regulations and ethical standards, while private accountants are not subject to the same restrictions. This means that public accountants must be detail-oriented and have a strong understanding of the law, while private accountants can be more flexible in their approach. While both public and private accounting have the same goal of providing accurate financial information, there are some critical differences between the two.

Public Accounting Job duties

This is due to the nature of the work, which often involves tight deadlines and a high level of public scrutiny. As a result, public accountants may be more susceptible to burnout than their private counterparts. The public accountant is trained to develop proficiency in the analysis of accounting systems of companies and the validation of their financial disclosures. A public accountant must also be well versed with the accounting standards (GAAP or IFRS) governing the accounting standards followed in the preparation of the financial statements of client companies. On the other hand, a private accountant’s training helps in developing expertise in recording accounting transactions, which may include billings, accounts receivable and accounts payable, etc.

The primary skills for both include self-motivation, integrity, organizational skills, ability to manage deadlines, strong communication skills, and proficiency in new technology. Private accountants are typically employed by a single employer and review internal business documents to plan budgets and evaluate fiscal performance. While working with solely one employer can feel more routine, it often leads to a healthier work-life balance. Private accountants often specialize in a specific industry, which can build specific knowledge and skill sets within the chosen field. Public accountants are often employed at tax preparation companies, accounting services, insurance companies and government agencies. To prepare for the CPA exam, 30 additional credits are needed after earning a bachelor’s degree, for 150 credit hours.

He researches and writes student-focused articles on a variety of topics for Rasmussen University. He is passionate about learning and enjoys writing engaging content to help current and future students on their path to a rewarding education. Your friends are announcing new jobs on social media and your favorite blogs are constantly featuring stories of people who landed the job of their dreams. Knowing which type of accounting is best for you will depend on factors such as size and documentation complexity; however, researching the various available options will likely lead you to the ultimate decision. They have also created special initiatives such as “Building a Better Working World,” which focuses on helping businesses become more successful while addressing global challenges like climate change or inequality. Additionally, they are expected to stay abreast of current financial regulations to remain compliant with governmental regulations.

Both public and private accounting require similar education requirements, as the minimum requirement is a bachelor’s degree in accounting or business. While a bachelor’s degree is an excellent start in the sector, you’ll need additional credentials to become either a public or private accountant. The finance term “Public vs Private Accounting” is crucial as it signifies two distinct sectors of the accounting profession, each with unique roles, responsibilities, and career paths. Public accounting generally involves providing auditing, tax, consulting and accounting services to clients which can range from individuals to corporations. Both public and private accountants have their busy times, whether it’s tax season for public accountants or the end of a financial quarter for private accountants.

From maintaining large portfolios for various clients and auditing financial statements to structuring mergers and acquisitions, public accountants have a wide range of experiences. Conversely, private accounting offers specialization in certain areas and a potential for more career stability due to the long-term nature of client relationships. For example, public accountants may need to travel to meet with various clients, while private accountants may work at fixed locations with minimal or no travel involved.

Furthermore, they will work with financial managers to plan budgets and evaluate their fiscal performance. Among accounting professions—for those who intend to pursue a career in this field—the choice most commonly falls down to two of the most popular branches of accounting, known as public accounting and private accounting. Depending on your personal and professional priorities, working in public accounting may come with both positives and negatives.