Pros and cons of working in public accounting vs. private accounting

If you’re considering a career in public accounting vs private accounting, it’s important to understand the details of each. It’s also necessary to consider the benefits and disadvantages you may experience when working in private vs. public accounting. 

With all the facts, you can make a plan that leads you to achieving your career goals. 

Public accounting vs private accounting: What’s the difference? 

While many of the same tasks and skills are required in all types of accounting, there are also big differences in private vs. public accounting. 

What is public accounting? 

Public accounting firms provide this service and hire accountants to work directly with their clients. Firms range in size from very small with just one or two individuals to extremely large, global organizations with hundreds of thousands of employees. 

Examples of public accounting firms include Deloitte, PWC, EY, and KPMG, collectively known as the Big 4 accounting firms, mid-tier firms like RSM and Grant Thornton, and small local firms with just a handful (or fewer) of CPAs and support staff. 

Public accounting services include:

• Preparing financial statements 
• Auditing financial statements 
• Preparing tax returns and handling IRS-related issues 
• SEC reporting  
• SOC audits 
• Consulting on anything from system implementation to litigation support, and more 

Note that there are many tasks in public accounting that you cannot legally complete without a CPA license, which authorizes you to conduct essential responsibilities like external and SOC audits, IRS proceedings, and SEC reporting. 

Job titles you may hold in public accounting:¹ 

• Auditor 
• Tax Manager 
• Staff Accountant 
• Senior Accountant 
• Firm Partner 

What is private accounting? 

In private vs. public accounting, individuals do not work for a firm, but rather, directly within the structure of a single organization. Likewise, their work is used for internal purposes only, rather than public reporting and diligence. 

Private accounting services include:

A private accountant’s primary duties may cover a range of tasks, depending on the employer’s size and industry. However, some common jobs include:  

• Analyzing financial processes and suggesting changes to promote efficiency 
• Forecasting and budgeting for projects and departments across the organization 
• Evaluating past fiscal performance and suggesting insights for future improvement 
• Creating financial reports to present before internal decision-makers and stakeholders, often including analysis and suggested changes 

Job titles you may hold in private accounting:¹ 

• Staff Accountant  
• Controller 
• Financial Analyst 
• Managerial Accountant 
• CFO 

Pros of public accounting vs. private accounting 

1. Higher average salary 

Public accountants report an average annual salary of $81,814,² compared to the private accountant’s annual average salary of $68,326.³ 

2. Great networking  

Working with a public accounting firm, you meet lots of professionals both within the accounting industry and across the board through your clientele. This networking can help you advance professionally, as well as expose you to new areas of specializations that may interest you and which you may choose to pursue as you grow your career. 

Working in private vs public accounting, on the other hand, will expose you to fewer individuals, especially clients with whom you could build future career opportunities. 

3. Diverse experiences 

Because you serve a variety of clients in public accounting, you learn about several different industries and the idiosyncrasies that come with accounting for each one. The diversity in experience that you gain in public accounting is extremely valuable if you choose to advance your career into a specific area of interest. 

If you’re working for a single organization in private accounting, however, you will likely build deep expertise only in a specific industry, for a specific organization, making it a longer journey to diversification later in your career. 

4. Job security 

Accountants, in general, are in high demand—especially qualified CPAs who can work in a variety of services for a number of clients. Choosing to work in public accounting will give you very high job security and ample room for career advancement.⁴ 

That said, private accountants likewise have good job prospects, as industries of all kinds become increasingly reliant on accountants to help inform their decision-making.⁵ 

Cons of public accounting vs. private accounting 

1. Long hours  

Public accountants stay busy managing many clients and, at least in entry-level positions, doing a lot of time-consuming grunt-work. This means that you work long hours that may not be ideal for your work/life balance.⁵ 

Though it depends on the organization, private accounting often offers more flexibility in your schedule, with a workload more conducive to a 40-hour work week. 

2. Frequent travel 

If you’re a public accountant, you work for many clients across the country or even globe. You will likely have to travel to see them, present reports, perform audits, etc., and could get sick of the frequent travel if it doesn’t fit in your lifestyle. 

Private vs. public accounting, however, offers you the chance to work for a single organization, where you’ll likely be much more stable. 

3. Less opportunity for diversification 

Working in public accounting vs. private accounting generally has a single path upward, through the corporate ranks to senior accountant, senior manager, and eventually (hopefully) partner. However, you aren’t guaranteed a climb to the top and don’t have many other options if you stay with a public accounting firm. 

Private accounting, on the other hand, may open doors to a number of other specializations within accounting, or different financial roles altogether. 

Public accounting vs. private accounting: Which is better? 

There’s no right or wrong answer to this question, which entirely depends on your career goals and your lifestyle needs. We recommend that you weigh the pros and cons of public accounting vs private accounting carefully and consider which fit is best for you. 

And remember, you’re not stuck! If you’re working in one area and it’s not right for you, you can switch to the other. Every professional experience you gain is valuable to strengthen your skillsets and build your career. 

Download our FREE CPA Exam Guide 

No matter your career choice, Becker can help you achieve your goals! Learn how earning your CPA license can open career opportunities. Get started when you download our 2024 CPA Exam Guide and learn everything you need to know about the exam.