Question

Please write a 300 words essay describing the differences between a career in Private Accounting vs. a career in Public Accounting. Describe differences in requirements, job levels, corresponding salaries, work commitment (e.g. hours, travel, continuing education requirements) and any other relevant differences.

Answer 1

There are two main career areas within the field of accounting: public and private. Accountants work with individuals, small businesses, large corporations, non-profits, and government as a professional (Public accounting) or as an employee (private accounting).

Public accounting covers a wide range of services, including preparing and issuing the public financial reports for a company, providing business consulting services or personal financial planning services, and preparing tax returns in a professional manner, whereas, In private accounting, the accountant prepare and analyze financial statements for individuals, small businesses, large corporations, non-profits as an employee.

Differences between a career in Private Accounting vs. a career in Public Accounting-

1. Salary- In private accounting, for example, the average salary for entry-level general accountants in our first year is approximately $49,000. Public accountants in audit/assurance services with up to one year of experience can expect an average salary of $48,750.

For a tax manager in corporate accounting, the midpoint salary is $109,500, and for a tax director, $142,250. Salaries for senior managers/directors in tax services at public accounting firms are $136,750 at the midpoint.

2. Education, licenses, and certificates-

In terms of education, you should earn your bachelor's degree in accounting, finance business to work in either public or private accounting. For CPA jobs, we need to pass one of the most rigorous professional credential examinations in the business.

While private accountants are not required to hold finance and accounting certifications, there are several, including the CPA, that can boost our salary potential and show our commitment to the standards and ethics required by our state board of accountancy.

3. Experience: A public accountant may have experience in multiple industries, depending on their specific clients. A private accountant will probably have knowledge that applies to a single industry.

4. Work Environment: For both public and private accounting, there will be times of the year that are busier than others. For example, public accountants are very busy during tax season, whereas private accountants are very busy at the end of a fiscal quarter. Another difference in the work environment is that public accountants have unpredictable work environments and schedules. Public accountants work with various clients from individuals to big corporations and sometimes the government. A public accountant travels to their clients and is often under stringent deadlines. Private accountants usually work typical business hours.

4. Continuous Education: For both public and private accounting, a bachelor’s degree in accounting is the main requirement. But for a public accountant comparatively more updated knowledge is required as he performs a wide range of services, including preparing and issuing the public financial reports for a company, providing business consulting services or personal financial planning services, and preparing tax returns in a professional manner.

5. Travel and working hours. -Given the nature of work, a public accountant might be required to travel to the site of the client location and work for long hours to meet tight deadlines. On the other hand, the work of a private accountant is relatively stable, with very few to no travel (fixed work location) and regular hours.

Thanks & all the best.....