Public Accounting vs. Private Accounting: What’s the Difference?

If you’re exploring a career in accounting, understanding the key differences between public accounting and private accounting is important. Each path offers unique responsibilities, benefits, and challenges that can shape your long-term goals and professional growth.

We’ll break down the core differences between public vs. private accounting, helping you decide which route best aligns with your skills, and lifestyle.

Public accounting involves providing financial services to a variety of clients, including individuals, businesses, and government entities. These services typically include:

Preparing and auditing financial statements
Filing tax returns and handling tax-related matters
Consulting on financial systems and strategies

Public accountants usually work for accounting firms, which can range from local offices to global organizations. These firms hire accountants to serve external clients across different industries.

Common Job Titles in Public Accounting:

Auditor
Tax Manager
Staff Accountant
Senior Accountant
Accounting Firm Partner

Note: To perform key public accounting tasks, such as audits or representing clients before the IRS, you’ll typically need a CPA (Certified Public Accountant) license.

While Private accounting on the other hand, refers to accountants who work internally within a single organization. Their focus is on tracking, analyzing, and reporting the company’s financial performance to support internal decision-making.

Common duties in private or corporate accounting include:

Budgeting across departments
Analyzing financial performance
Streamlining internal financial processes
Creating reports for executives and stakeholders

Rather than serving multiple clients, private accountants concentrate only on the needs of the company they work for.

Common Job Titles in Private Accounting:

Controller
Financial Analyst
Managerial Accountant
CFO (Chief Financial Officer)
Internal Auditor

Let’s go over the pros of each one of them!

1. Higher Salary Potential

Public accountants tend to earn more on average. According to industry data:

Public accountants: ~$81,800/year
Private accountants: ~$68,300/year

This gap often reflects the demanding nature of public accounting roles.

2. Greater Networking Opportunities

Working with a wide variety of clients means public accountants build a broader professional network. These connections can lead to career growth, new specialties, and more opportunities across industries.

3. Broader Industry Exposure

In public accounting, you’ll gain experience across multiple sectors. This diverse exposure can help you find your niche or make it easier to pivot to new roles later in your career.

4. Strong Job Security

Accountants, especially CPAs, are consistently in demand. Public accountants often benefit from high job security due to their wide-ranging expertise and ability to adapt to client needs.

While the cons of Public Accounting vs. Private Accounting are:

1. Longer Hours

Public accountants frequently work extended hours, particularly during busy seasons (like tax time or audit cycles). Entry-level roles often involve demanding workloads, which can impact work-life balance.

2. Frequent Travel

Client meetings, audits, and presentations often require public accountants to travel, sometimes extensively. If you prefer a more stable routine, this might be a drawback.

3. Narrow Promotion Paths

Public accounting firms typically have a set career ladder, from staff to manager to partner. If you don’t aim for partnership or want to branch into other specialties, your options might feel limited.

In contrast, private accounting may offer more varied advancement paths within departments like finance, budgeting, compliance, or operations.

But still, which Accounting Path Is Right for You?

There’s no universal answer when choosing between public vs. private accounting. Your decision should reflect your long-term goals, lifestyle preferences, and the type of work that excites you.

Choose public accounting if you want broad experience, strong networking, and are open to fast-paced, high-demand environments.
Choose private accounting if you value work-life balance, stability, and in-depth involvement in a single organization’s financial success.

Remember: You’re Not Locked In

Many accountants transition between public and private roles throughout their careers. Whether you start in a Big firm or join a private company straight away, every experience builds your skills and adds value to your resume.

So to wrap it all up…

Understanding the difference between public and private accounting is key to choosing the right path for your career. Evaluate the pros and cons carefully, and consider what type of environment, tasks, and growth opportunities fit you best.

No matter where you begin, both paths offer rewarding opportunities and the chance to grow into leadership roles in the accounting industry.