Are you passionate about helping government agencies operate more efficiently so that they can provide better service to the people and communities who depend on them? Consider becoming a CPA or accountant for a federal, state, or local government organization, such as a school district or workers’ comp agency. According to BLS data, government-employed accountants and auditors earn a median salary of $77,290. This piece of ad content was created by Rasmussen University to support its educational programs. Rasmussen University may not prepare students for all positions featured within this content. Rasmussen University does not guarantee, approve, control, or specifically endorse the information or products available on websites linked to, and is not endorsed by website owners, authors and/or organizations referenced.

  • Some accountants may thrive in the demanding, fast-paced environment of a public accounting firm.
  • This role often provides accountants with opportunities to focus on specific business sectors, allowing them to develop a deep understanding and expertise in their chosen industry.
  • The Bureau of Labor Statistics (BLS) reports that postsecondary educators, like college professors, earn a median salary of over $79,000.
  • This specialization allows for a deeper understanding of specific financial functions and can lead to roles that are highly tailored to an individual’s strengths and interests.

This person oversees the company’s compliance with all state and federal laws on wages and manages the related reporting activities. They also make sure the appropriate amount of money is withheld for taxes and prepare annual compensation reports. Both of these financial roles involve working with financial statements and doing audits.

Compensation and Benefits Comparison

Whether you’re drawn to the dynamic environment of public accounting or the stability of private accounting, we will provide you with the insights and information you need to make a well-informed decision. The larger scale of many public clients necessitates onsite visits for specific tasks. On the other hand, private accountants often only need to travel as much of their work can be completed remotely from their offices or homes.

Five Key Differences Between Public and Private Accounting

I understand that consent is not a condition to purchase any goods, services or property, and that I may withdraw my consent at any time by sending an email to email protected. Public accountants have the potential to move into higher positions, such as financial managers. As of May 2021, financial managers had an estimated pay range between $82,870 and $239,200. The projected job outlook for accountants in the next decade is expected to grow 4% between 2022 and 2032, which translates to roughly 126,500 openings each year. “Private accountants’ daily activities revolve primarily around management reporting. This includes recording manual journal entries and performing account reconciliations,” Butts says.

  • According to EMSI, the median advertised salary for CPAs is $90,000 across all accounting functions.
  • Every professional experience you gain is valuable to strengthen your skillsets and build your career.
  • Embracing the diverse clientele and collaborative spirit of public accounting not only cultivates expertise but also enriches one’s professional journey.
  • The Bureau of Labor Statistics (BLS) reports that the top three paying states for accountants and auditors are the District of Columbia, with a mean wage of $110,750, New York, with $110,320 and  New Jersey, $102,040.
  • Public accounting also lends itself to specialization; for example, an accountant working for a public firm might specialize in tax or mergers and acquisitions.
  • Unlike public accountants who serve multiple clients, private accountants become intimately familiar with their company’s industry, business model, and strategic objectives.

Private accountants typically possess different expertise than public accountants regarding more complex financial matters such as tax planning, estate planning, auditing, or forensic accounting services. As such, those requiring specialized services may be better served by relying on experienced professionals from larger public accounting firms specializing in these areas. Private accountants often enjoy a more stable work environment within a single organization.

In this article, we’ll explore ten key differences between public accounting and private accounting, helping you make an informed decision about your career. By comparison, the primary task of public accountants is to audit and assess the accuracy of financial statements reported by corporations, governmental entities, and other organizations. Public accountants also certify tax returns and advise clients on taxation regulations. Private accounting focuses on the inner workings of companies, governments and agencies.

Earn Your Accounting Degree at National University

However, to rise through the ranks, a Master of Science in Accounting or a Master of Business Administration degree can be helpful if you want to further your knowledge in accounting and finance or take on leadership roles. I understand this consent is not a condition to attend Florida Tech or to purchase any other goods or services. According to the US Bureau of Labor Statistics (BLS), there were about 1.4 million accountants working in the United States as of 2018, mostly concentrated in urban centers. It’s a diverse field that presents a lot of options for anybody with the right skills.

Not all private accounting jobs require a CPA certification, but it’s common to see it listed as a preferred qualification. Private accountants help businesses with various accounting responsibilities, such as tax preparation, financial analysis and internal auditing. It’s important to remember that while this is a side-by-side comparison, the path you choose doesn’t have to be permanent. For instance, it’s fairly common to see new accountants begin working for large public accounting firms where they’ll work long hours as they pursue their CPA license. Public accountants are trained to develop proficiency in the analysis of companies’ accounting systems and the validation of their financial disclosures. A public accountant must also be familiar with the accounting rules (GAAP or IFRS) that regulate the accounting practices used to prepare client company financial statements.

Professional Advice & Guidance- The Benefits of Private Accounting

By proactively addressing these challenges and leveraging support systems and resources, individuals can successfully navigate the complexities of public accounting. For those who desire an in-depth understanding of the processes of accounting from a regulatory perspective, public accounting provides invaluable education. Accountants are responsible for preparing financial records, making financial reports, and advising clients on pertinent financial matters.

Public accounting refers to a branch of accounting where professionals provide a variety of accounting services to clients that include individuals, businesses, and government entities. Public accountants work for public accounting firms ranging from large international firms to small local practices. They often travel to clients’ locations to assess and verify financial records, ensuring accuracy and compliance with regulations.

In addition to the skills gained, an online bachelor’s degree in accounting can help you learn the skills necessary to launch yourself into a position with a growing job outlook. Whether you’re interested in becoming a personal accountant or a Certified Public Accountant (CPA), an accountancy career can be a good fit for analytical minds, critical thinkers and problem-solvers. First, however, it’s important to understand which path to take — for both your education and your career. A CPA may be the most commonly known accounting license, but there’s a whole host of certification options for accountants to fit your specific career goals. “The biggest thing you need to know about environments if you’re weighing public versus private accounting is the travel,” says Eric Butts, CPA and advisory manager at PricewaterhouseCoopers. Private accountants are trained to develop expertise in recording accounting transactions, which may include billings, accounts receivable and accounts payable, etc.

Pros of Public Accounting

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. A private accountant’s daily activities revolve primarily around management reporting. Furthermore, they will work with financial managers to plan budgets and evaluate their fiscal performance. Depending on your personal and professional priorities, working in public accounting may come with both positives and negatives.

The accounting job landscape is in demand for public and private accountants due to complex financial regulations, data analytics, globalization, taxation, and auditing. The BLS estimates that employment of accountants and auditors is projected to grow 4% from 2022 to 2023, with about 126,500 openings projected each year. Public accounting is a type of accounting that offers various financial services to external clients, such as auditing, tax preparation, and consulting.

However, a private accountant’s knowledge may be confined to certain areas of accounting exclusively, depending on the nature and extent of the work. According to leading labor market analytics firm EMSI, jobs for accountants and auditors are expected to grow 5% by 2031. Private accountants generally start as staff accountants before moving into management roles, with the capstone management role being that of the CFO.

Both public vs private accounting 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. Choosing between public accounting and private accounting ultimately depends on your career goals, work style preferences, and lifestyle considerations. Both paths offer valuable experiences and opportunities for growth, but they differ significantly in terms of job responsibilities, work environments, and advancement opportunities. By understanding these key differences, you can make a more informed decision about your future in accounting.