Public vs Private Accounting: Which is the Better Career Path For You?

The largest employers of accountants include tax preparation and accounting services companies, finance and insurance companies, and government agencies. In an interconnected world, the influence of public accounting extends beyond national borders. Multinational corporations and global financial markets require a harmonized approach to accounting and auditing standards. Organizations such as the International Federation of Accountants (IFAC) play a pivotal role in promoting international accounting standards and ethical principles. Public accountants are not mere number-crunchers, they are financial advisors who help businesses chart a course to success.

Required Education for a CPA

• Holding an advanced degree can help accountants boost their earning potential and qualify them for upper-level roles.
• Her copy and content writing experience prior to this role includes education, non-profit, technology, building products, and other industries.
• Unlike public accounting, you do not need a CPA license in order to advance.
• I have been lucky to have a lot of long-standing, wonderful client relationships.
• I also understand that certain degree programs may not be available in all states.

Instead, it’s a professional designation that offers accounting professionals more flexibility and mobility in their career. Not only because it allows them to practice public accounting independently, but because what is public accounting it proves expertise in more advanced accounting areas. For many years, I worked in public accounting as an auditor and consultant. I really enjoyed working on various types of projects with different clients.

• Besides, they have to grapple with the advent of blockchain technology and cryptocurrencies.
• Many of these job opportunities fall within two career paths—public accounting and private accounting.
• Accountants across the U.S. can find available positions, even filtering for remote accounting opportunities by searching «remote» in the location field.
• While the general consensus is that starting out in public accounting to gain a wide base of experience is a smart choice, many accountants begin in private accounting and enjoy long, successful careers.
• By having an accountant do the tax return forms, the business gets some protection in an audit.
• Private accounting, also commonly called industry or corporate accounting, refers to accountants who work for a single organization within its internal finance department.

Pass the CPA exam.

• CPAs must meet eligibility requirements, obtain state licensure, and follow strict principles established by the AICPA.
• The AICPA requires that all CPA designation holders adhere to the Code of Professional Conduct, which lays out the ethical standards CPAs must adhere to.
• 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?
• We’ve included the Canadian average base pay, typical responsibilities, required skills and qualifications, and top companies hiring for each role.
• You could fulfill the extra 30 hours by pursuing a master’s degree in accounting or taking additional relevant coursework at the undergraduate level.

All states require at least one year of accounting experience to obtain licensure. Again, you’ll want to check with your state board of accountancy to see what type of experience you’ll need, the exact amount of hours and if part-time work is accepted. All CPAs must have a bachelor’s degree and 150 semester (225 quarter) hours. However, the specific amount of upper-level accounting courses, business courses, and other requirements are left to individual states. CPAs must meet eligibility requirements, obtain state licensure, and follow strict principles established by the AICPA. Licensed CPAs can perform specialized tasks not allowed for general accountants, like representing clients to the IRS.

How to succeed in public accounting: 7 tips to start your career

Tax Manager (6+ years) directs and reviews Staff and Senior Tax Staff, approves corporate tax returns prepared by Audit Staff, and is available to Audit Staff for consultation. Also performs tax planning and preparation for individuals, estates, trusts, and small businesses and researches unusual tax matters. Achievement of this level is critical to long-term success within a CPA firm, since it is awarded only to those with Partner potential. Public accountants also play a crucial role in assisting companies with mergers and acquisitions, offering insight into the financial health of potential partners or targets.

If you want to learn more about the CPA Exam, download our free 2024 CPA Exam Guide. This ebook includes everything you need to know, including the exam format, types of questions in each section, study tips and practice questions. Core sections test the ability to understand, apply, analyze and evaluate the foundational topics a newly licensed CPA is expected to know. Also, candidates must pass one of three Discipline sections to gain specialized knowledge in more advanced topics. Integrity Network members typically work full time in their industry profession and review content for Accounting.com as a side project. All Integrity Network members are paid members of the Red Ventures Education Integrity Network.

#6: Strengthen your tech skills.

After passing the CPA exams, you need to complete additional 30 units to have a total of 150 credits plus a year of working under a CPA to become licensed as a CPA. This requirement applies in all U.S. states and includes 150 minimum hours of coursework. Kristin Gayoso has more than seven years of professional experience as an accountant and runs the accounting humor account (@Lets_Get_Fiscal) on Instagram. Kristin is a CPA with both a bachelor’s and master’s degree in accounting from Clemson University. Kristin started her career in the audit practice at Deloitte & Touche and later transferred into advisory practice where she specialized in M&A due diligence.

Your passion. Our Programs.

The association’s website includes a job board for accounting professionals. People who successfully pass the CPA exam and meet all other state requirements can apply for licensure. Licensed professionals must complete CPE credits and pay a renewal fee to their state’s board of accountancy.

For that reason, don’t get discouraged when you step into an internship or your first job and feel lost. The downside to public accounting can be the long hours sometimes required to do the work, especially during tax season. They often must market their firm to new clients and may have to travel extensively.

Public vs. Private Accounting: Which is the Better Career Path For You?

In my experience, the best way to learn to audit was to actually be an auditor, which I did for many years out of college working in public accounting. Although tax returns are not open to the public, they fall under the public accounting umbrella due to the legal requirement of disclosing financial information to the government. Public accounting also includes filing corporations’ records with the Securities and Exchange Commission (SEC) and potential investors. Senior Auditor (3-6 years) works under the general direction of an Audit Manager. Responsibilities include the direction of audit field work, assignment of detail work to Staff, and review of their working papers.