Public vs. Private Accounting: Degrees and Careers

Individuals interested in starting an accounting career typically choose between two options: public accounting and private accounting. But what's the difference between public and private accounting?

Public accountants provide accounting services like tax preparation for various clients, while private accountants manage financial records and more for a single company. Accounting professionals can choose the route that suits them best.

No matter a person's career goal, the proper steps must be taken to secure a public or private accounting job. It starts with picking the right accounting degree program. Meeting additional requirements like licensure for CPA roles is also crucial.

What Is Public Accounting?

Public accounting involves accountants taking on a variety of clients. Duties of public accountants might include:

• preparing and filing tax returns
• providing financial advice on capital investments
• managing income statements, cash flow statements, and balance sheets
• auditing public companies (more common with large accounting firms)

Public accountants often work as certified public accountants (CPAs). They might start their own firm or join a public accounting firm. Some serve as independent practitioners.

What Is Private Accounting?

Private accounting involves staff accountants working in-house. Typically, a private accountant works for a government agency, private business, or nonprofit organization. Job duties of private accountants include:

• verifying billing
• creating internal accounting systems
• performing internal audits
• running accounts receivable and accounts payable
• managing the general ledger

You might find private accountants in entry-level roles within an accounting department. Or you could see them in higher positions as senior accountants or chief financial officers (CFOs). Higher-level accountants often supervise bookkeepers, clerks, and other departmental employees.

Key Differences Between Public Accounting and Private Accounting

Public and private accounting have many similarities�but they also have several differences. Let's see what makes these types of accounting unique.

Work Environment

Private and public accountants typically have different work environments. Private accountants generally work in the same setting every day since they work for a single company. Public accountants are more likely to visit clients in their offices, which might require more travel.

Since public accountants more commonly prepare taxes for their clients, they might work long hours during tax season from January to April. Private accountants are usually busier at the end of each month and fiscal year.

Job Duties

The job duties of public accountants include preparing tax returns for their clients to file with the IRS and managing other financial documents to make sure they comply with the Securities and Exchange Commission (SEC). Their interactions with clients might be ongoing, but not daily as with private accountants.

Private accounting duties include planning budgets with financial managers and analyzing an organization's fiscal performance. They also create audit trails and review journal entries.

Educational Requirements and Licensure

The educational requirements are similar for both public and private accountants. They need a bachelor's degree in accounting or a related field to find job opportunities. Some employers might require a master's degree.

A major difference between these types of accountants is in certification requirements. Any accountant who files reports with the SEC must have a CPA certification. Most public accountants become CPAs. Requirements include:

• completing 150 semester hours of college coursework (30 more hours than the typical four-year degree)
• passing the four-part Uniform CPA Examination from the American Institute of Certified Public Accountants
• getting licensed by your state's Board of Accountancy

Private accountants who want to become certified might consider the certified management accountant (CMA) credential from the Institute of Management Accountants (IMA). Applicants must pass an exam and have work experience in management accounting.

Career Path

After securing their education, private and public accountants have different career paths. Public accountants might become self-employed, start an accounting firm, or join a team of accountants. They handle tax accounting and financial information for multiple clients.

Private accountants search for corporate accounting or similar roles. They manage financial planning and serve as an internal auditor for one business. While public accountants answer to numerous clients, private accountants often answer to a company's stakeholders.

What Type of Accounting Is Right for Me?

Before pursuing an accounting career, you'll want to make sure the career path you take is right for you. How can you know? Start by asking yourself these questions:

• Am I better suited to work in one setting or travel to several locations?
• Would I prefer a busy tax season or busy end-of-month and fiscal periods?
• Do I want to meet the qualification requirements for becoming a CPA?
• Do I like handling the ongoing accounting affairs of one entity or the different accounting needs of multiple clients?

Answering these and other related questions can help you decide whether you're better suited for public or private accounting.

How To Start a Career in Accounting

Becoming a public or private accountant starts with getting the right education. But it doesn't end there. Here are the steps you need to take to start a private or public accounting career:

• Decide whether you want to become a private accountant or CPA.
• Enroll in a college or university offering a bachelor's degree program in accounting. If you want to become a CPA, consider a five-year program that helps you prepare for the CPA exam.
• Consider pursuing a specialization like forensic accounting, internal auditing, or tax accounting.
• Get your CMA or CPA license, if desired. Keep in mind that most credentials require some experience in the field.

After you've obtained the right education and experience, your next step is to pursue accounting roles. According to the U.S. Bureau of Labor Statistics (BLS), more than 126,000 openings are expected for accountants and auditors annually from 2022 to 2032.

Accounting Degree Programs in the U.S.

Numerous schools nationwide offer accounting programs for students seeking bachelor's degrees alone or bachelor's and master's degrees combined. Here are just a few program options.

University of Arizona

The University of Arizona offers a Bachelor of Science in business administration in accounting. This four-year program teaches managerial accounting, business operations management, accounting information systems, analysis of financial statements, and much more. Students must complete 21 accounting units and 30 professional core units. This program is available at the Tucson campus and online.

Louisiana State University

At Louisiana State University, students can enroll in the 100% online Bachelor of Science in accounting program, which teaches emerging accounting techniques. Enrollees of this 120-credit program are prepared to take the CPA exam from experienced faculty � including licensed CPAs. The program offers two concentrations�the first is accounting information systems, and the second is data analytics and fraud and forensic accounting.

University of Missouri

The University of Missouri has a 150-credit program that delivers Bachelor of Science in accountancy (BSAcc) and Master of Accountancy (MAcc) degrees. The BSAcc portion of the program features 120 credits of coursework, while the MAcc portion completes the final 30 credits. Students in the graduate portion of the program can use accountancy electives to take on an emphasis in accounting data analytics, taxation, or assurance.