There was an unexpected error with the form (your web browser was unable to retrieve some required data from our servers). This kind of error may occur if you have temporarily lost your internet connection. If you're able to verify that your internet connection is stable and the error persists, the Franklin University Help Desk is available to assist you at helpdesk@franklin.edu, 614.947.6682 (local), or 1.866.435.7006 (toll free).
Just a moment while we process your submission.
Accounting is a dynamic industry full of career opportunities. According to leading labor market analytics firm EMSI, jobs for accountants and auditors are expected to grow 5% by 2031.
Many of these job opportunities fall within two career paths—public accounting and private accounting. While public and private accounting are two distinct paths, it’s common for accountants to switch between them during the course of their careers. That’s why it’s important to understand both paths at the outset, so you can identify which path is best suited for you now and in the future.
Let’s dive into what defines public vs. private accounting and the pros and cons of choosing to work in either sector.
Public accounting refers to a business or individual accountant who provides services for multiple clients, which can be individuals or large corporations. Whether public accountants work in private practice or for an international accounting firm, they are responsible for understanding every client’s unique needs and helping them make the best financial decisions.
Public Accounting Education and Credentials
To join the ranks of public accountants, the minimum education is a bachelor’s degree in accounting. While a bachelor’s degree will get you in the door, becoming a Certified Public Accountant (CPA) is essential to advancing in this sector. Accountants earn their CPA license from a state board, which sets standards for education and experience. Accountants must also pass the rigorous CPA exam before earning their license.
Public Accountant Responsibilities and Skills
The role of public accountants varies based on the size of their employer and client needs. The core functions of public accountants typically include a combination of:
In addition to technical accounting skills, public accountants also need strong personal skills. Since they are client-facing, public accountants need to be able to:
According to the American Institute of Certified Public Accountants (AICPA), there are currently over 46,000 public accounting firms in the United States ranging in size from small local accounting practices to large international CPA firms. Four of the largest employers within this space are Deloitte, Ernst & Young, KPMG and PwC—collectively known as “The Big Four.” Public accounting jobs at these international accounting firms are highly coveted and competitive.
According to EMSI, the median advertised salary for CPAs is $90,000 across all accounting functions. Median salaries for CPAs are highly influenced by years of experience in the industry. Salaries may also be impacted by the specialization a public accountant chooses.
Let’s look at three of the most common career paths within public accounting, as well as the median advertised salaries across all experience levels (EMSI):
If public accounting seems intriguing, it’s only one side of the accounting industry. There are also a multitude of career opportunities in the other major sector—private accounting.
Private accounting, also commonly called industry or corporate accounting, refers to accountants who work for a single organization within its internal finance department. Private accountants work across every industry and sector, making this a stable career choice no matter where you live and work.
Private Accounting Education and Credentials
If you want to work in the private accounting sector, you will need a bachelor’s degree in accounting. Unlike public accounting, you do not need a CPA license in order to advance. Other credentials, such as a master’s degree in accounting or an MBA can be beneficial in helping you rise through the ranks. A master’s degree in accounting is ideal for professionals who want to specialize in accounting and finance, while an MBA can help accountants gain cross-functional leadership skills.
Private Accounting Responsibilities and Skills
The role of private accountants will vary based on their employer, industry and size of their finance department. The core functions of private accountants typically include a combination of:
To succeed within this role, private accountants need a strong combination of technical skills and interpersonal characteristics, including:
If you’re looking for a career path that doesn’t require earning a CPA license, private accounting is the right path for you. According to EMSI, in 2021 there were 170,481 job postings for accountants and auditors with a bachelor’s degree and no CPA license. Expected salaries for accountants without a CPA are heavily influenced by years of experience.
Let’s look at four popular career options within private accounting that don’t require a CPA, as well as the median advertised salaries across all experience levels (EMSI):
Now that you understand the fundamentals of these two accounting career paths, let’s evaluate the pros and cons of working in public vs. private accounting.
Public accounting firms are known for being demanding workplaces. Depending on your personal and professional priorities, working in public accounting may come with both positives and negatives.
Three pros of working in public accounting:
Two cons of working in public accounting:
Private accounting provides a solid and steady long-term career path. Some accountants will appreciate this atmosphere, while others may look for faster-paced environments. These are some of the pros and cons to consider if you want to pursue private accounting.
Three pros of working in private accounting:
Two cons of working in private accounting:
The choice between public and private accounting is very personal. Some accountants may thrive in the demanding, fast-paced environment of a public accounting firm. Others may prefer the steady, low-stress environment of a private accounting job.
There is also no reason you have to choose the public or private path for the entirety of your career. It’s very common for accountants to pursue a job in public accounting at the outset, then transition into private accounting. This scenario can also be advantageous in terms of accelerating advancement. Often, public accountants will be promoted more quickly, which allows a public accountant to enter the private accounting field at a higher level than their private peers.
Whichever path you choose, it’s important to build a strong foundation of accounting knowledge and skills to succeed in public or private accounting.
Getting your bachelor’s degree in accounting is more accessible than ever before. Franklin University offers a 100% online B.S. in Accounting that will help you gain the industry-ready skills to work in the public or private accounting environment. In addition to building your accounting capabilities, Franklin gives you a jump-start on pursuing a professional certification, saving you both time and money.
Learn more about Franklin’s bachelor’s degree in accounting program and how it can help you achieve your career goals.