What鈥檚 the difference between public and private accounting?
Written by Michael Feder
Reviewed by听Kathryn Uhles, MIS, MSP,听Dean, College of Business and IT
Whether you鈥檙e 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鈥檚 important to understand which path to take 鈥 for both your education and your career.
Within accounting, there are two primary career paths 鈥 public and private. How do those differences impact your choice of major? Let鈥檚 take a closer look at what it means to be an accountant in the public versus private sector.
What is a private accountant?
Private accounting focuses on the inner workings of companies, governments and agencies. Not all private accounting jobs require a CPA certification, but it鈥檚 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.听
Educational requirements
Whether you鈥檙e interested in forensic accounting, bookkeeping or tax preparation, your career will benefit from the foundation of a bachelor鈥檚 degree in accounting. Some common job titles for accountants with bachelor鈥檚 degrees include:
- Accountant
- Accounting manager
- Cost accountant
- Auditor
- Tax examiner
A robust online business degree program teaches such skills as how to use accounting principles to:
- Manage all aspects of the accounting cycle
- Evaluate financial statements and other information
- Translate ethical, legal and accounting standards into best practices
- Integrate business and financial operations
In addition to the skills gained, an online bachelor鈥檚 degree in accounting can help you learn the skills necessary to launch yourself into a position with a growing job outlook.
Salary and job outlook
As of May 2023,听, with a median wage of $79,880, according to the U.S. Bureau of Labor Statistics (BLS). This profession is听, according to BLS.
The salary range for private accountants can vary greatly due to the vast array of businesses and industries that need highly trained financial professionals. That鈥檚 why it鈥檚 important to research where private accountants are in high demand.
Salary ranges are not specific to students or graduates of 七色视频. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. 七色视频 does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.
BLS Occupational Employment Projections, 2022-2032 is published by the U.S. Bureau of Labor Statistics. This data reflects BLS鈥 projections of national (not local) conditions. These data points are not specific to 七色视频 students or graduates.
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Where does a private accountant work?
Whether you plan to launch your own company,听become an entrepreneur听or grow in your current career, private accountants have various options for their career paths. They may become accounting managers, cost accountants, auditors or tax managers for a company, for example. As leaders in their industry, private accountants use their diverse knowledge and business communication skills to enhance,听sustain and maintain a business鈥檚 financial ecosystem.
What is a public accountant?
Public accountants provide auditing, tax, advisory and consulting services to private, public and governmental agencies. For people with an accounting or business degree, becoming a CPA is a significant career milestone. This certification almost universally conveys the idea that you鈥檙e an expert in your field. However, it takes extra work to get there.
Educational requirements
听you鈥檒l need to take听30 additional credits听after earning your bachelor鈥檚 degree, for 150 credit hours. In addition, the state you live in may have specific requirements for becoming a CPA. Look for an online degree program accredited by the听听to ensure you have the proper training to sit for the exam in your state.
In addition to accreditation, a strong accounting program offers opportunities to learn key business and financial concepts, such as:
- Business communication
- Principles of accounting
- Ethical and legal topics in business
- Principles of microeconomics and macroeconomics
- Accounting specializations like corporate and cost accounting
Since aspiring public accountants need to complete additional credits following a bachelor鈥檚 degree, it鈥檚 helpful to know early on if you intend to make the leap to CPA. Deciding this ahead of time can help with semester planning, job hunting and time management.
Salary and job outlook
As mentioned above, salaries for听, with a median wage of $79,880, according to BLS.
Public accountants have the potential to move into higher positions, such as financial managers. As of May 2021, financial managers had an听. The projected job outlook for accountants in the next decade is expected to grow 4% between 2022 and 2032, which translates to roughly听.
Where does a public accountant work?
Public accountants are often employed at tax preparation companies, accounting services, insurance companies and government agencies. Many CPAs can become business owners or are self-employed.听
Should you be a public or private accountant?
Public accounting offers the opportunity to work with various accounting systems and for an array of companies operating all over the world. Public accountants often have to build rapport with their clients, so strong social skills are a significant advantage. Life for a public accountant can be busy, filled with travel and irregular work hours.
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听. Private accountants often specialize in a specific industry, which can build specific knowledge and skill sets within the chosen field.
Both career paths have similar foundations: They prepare leaders with the necessary accounting skills to help organizations make financially sound business decisions.
Pursue an online program from 七色视频
If you want to expand your knowledge and skill set within accounting or financial planning, 七色视频 offers a few online degree programs听and individual course offerings to consider:
- Bachelor of Science in Accounting:听This program teaches essential skills to better understand accounting, such as auditing, accounting, financial statements and bookkeeping principles.
- Bachelor of Science in Accounting with an Associate of Arts with a concentration in Business Fundamentals:听This program covers how to record and communicate measurable business activities to stakeholders, analyze financial statements to help an organization strategize and more.
- Bachelor of Science in Finance and Technology:听If you want to analyze financial data used in financial accounting, planning, management and decision making, this programs is for you. You'll learn听to evaluate aspects of financial planning used to grow, manage and protect wealth.听
- Individual accounting courses:听If you need individual courses to pursue your career goals in accounting or to complete a degree program UOPX offers 23 accounting courses that can be earned completely online.听
ABOUT THE AUTHOR
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at 七色视频 where he covers a variety of topics ranging from healthcare to IT.
ABOUT THE REVIEWER
Currently Dean of the College of Business and Information Technology,听Kathryn Uhles has served 七色视频 in a variety of roles since 2006. Prior to joining 七色视频, Kathryn taught fifth grade to underprivileged youth in Phoenix.
This article has been vetted by 七色视频's editorial advisory committee.听
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