Public Vs Private Accounting

Accounting is a hot major choice for college students today. Many students choose accounting as a major but are not sure which avenue of accounting they would like to travel down. The two main sectors of accounting that one can choose from are public and private accounting. Public accountants are professionals who work for a particular accounting firm and serve various clients in ranging fields. Private accountants, on the other hand, work as internal accountants for one company. Choosing between public and private accounting is not easy for young accounting majors but knowing your skill sets and having the right information can help in the process.

Public accounting is the first main sector of the profession. It is a sector of accounting where communication and excellent people skills are a must. Public accountants serve a wide variety of clients; therefore, knowing how to communicate properly with different people is important. Good grades are obviously important but accounting firms are starting to look more towards personality and customer service skills during the interview process.

A recent graduate who decides on public accounting can choose between a national, regional or local firm. There are many regional and local firms across the country but only four national firms. Pricewaterhousecoopers, Deloitte Touche Tohmatsu, Ernst & Young, and KPMG are considered the big four and offer a range of services. These services include advisory, audit and assurance, and tax services. Working for a big four firm is great if you want top notch experience in the field of accounting. Also, plan on working with many other employees in large groups. National and international travel is very common while working for a big four firm if that interests you as well. The demand for accountants is extremely high in today's world so landing an entry level position at one of the big four firms is not easy.

A regional firm may suit you more if you want to stay local but do not want too small of a firm. A common regional firm may have two hundred employees working in auditing, tax services, business advisory and technology services. Professionals working for a regional firm will also serve a wide range of clients. One work day may involve taking a physical inventory for a manufacturing firm while the next day you could be working on an audit for a service firm. A local firm, on the other hand, will usually have a small number of employees that will concentrate on one area of expertise. Again, people skills are highly important for national, regional, and local public accountants. If you plan on working in public accounting it is highly recommended you become a Certified Public Accountant (CPA).

Public accounting is not for everyone with an accounting degree. Some people would be happier working for one particular company instead of serving various firms. These professionals are private accountants. You can work for a company in their internal accounting department or even climb the corporate ladder and become a controller for a company. Reporting and analyzing the companies financial records is the main component of private accounting. Budget planning is also a large part of the workload. A CPA license is also highly recommended if you choose the private accounting path.

When choosing to work towards your accounting degree there is no clear choice in becoming a public or private accountant. If you want to serve various clients and industries, public accounting is the road for you. If your looking to work for one particular company then private accounting may be the right option for you. You will first need to asses your skills and see if they are better suited for public or private accounting. Also, an internship is recommended before graduating. Having an internship will give you a better understanding of working in public or private accounting before accepting a permanent job offer. Whichever career path is right for you, public and private accounting can both be rewarding career choices.