Public vs. Private Accounting: Which Career Path Is Best?

There's no right or wrong answer when it comes to deciding whether you should go into public or private accounting. It's a personal choice and really depends on individual priorities for work-life balance, career advancement, and work environment. Public accounting offers faster career progression, more diverse experience across multiple clients, and a structured path to leadership, but often involves long hours and high stress during busy seasons. Private accounting, on the other hand, typically provides a more stable work environment, predictable hours, and the opportunity to specialize deeply in one industry, but may have a slower promotion track.

Here's a deeper dive into both options.

Public Accounting

Public accounting involves professionals or firms that provide accounting services to multiple clients — from individuals and small businesses to large corporations. Whether operating independently or as part of a major international firm, public accountants help clients understand their financial position and make informed financial decisions.

Education and Credentials:

To become a public accountant, the minimum educational requirement is a bachelor’s degree in accounting. However, earning the Certified Public Accountant (CPA) designation is essential for career advancement.

Each state’s Board of Accountancy oversees CPA licensure, which requires meeting education and experience standards and passing the rigorous CPA Exam. Holding a CPA license demonstrates expertise, integrity, and commitment to professional excellence.

Responsibilities and Key Skills:

The day-to-day responsibilities of public accountants can vary based on the size of their firm and the needs of their clients. Common duties include:

Preparing and reviewing financial statements

Providing tax preparation, planning, and audit representation

Conducting audit and assurance engagements

Consulting on financial strategy and performance

In addition to technical expertise, public accountants must excel in several interpersonal and professional skills:

Clear communication: Translating complex financial data into understandable insights for clients

Stakeholder management: Collaborating with executives and departments across organizations

Composure under pressure: Handling multiple clients and tight deadlines with professionalism

Ethical integrity: Upholding strict confidentiality and fiduciary responsibility when managing sensitive information

Career Paths and Salary Expectations:

The American Institute of Certified Public Accountants (AICPA) reports that there are more than 46,000 public accounting firms in the United States, ranging from small local offices to large international organizations. The four biggest employers — Deloitte, Ernst & Young (EY), KPMG, and PwC — are collectively known as The Big Four, and positions within these firms are among the most competitive in the industry.

According to EMSI, the median advertised salary for CPAs across all roles is approximately $90,000, though compensation varies depending on experience, specialization, and location.

Here are three common career tracks within public accounting, along with their median advertised salaries (EMSI):

Accounting and Auditing Services – $77,700: Focuses on maintaining accurate financial records and preparing statements for external use by investors, lenders, or regulators.

Tax Services – $73,100: Involves preparing tax returns, providing tax planning advice, and representing clients in IRS audits.

Management Consulting – $83,200: Centers on helping individuals and organizations improve financial performance and long-term planning.

The Big Picture

Public accounting represents just one side of the accounting profession. Many professionals also find rewarding careers in private accounting, where they work within a single organization rather than serving multiple clients. Whether in public or private practice, accounting remains a dynamic, high-demand field offering strong career prospects and opportunities for continuous growth.

Private Accounting

Private accounting—also known as industry accounting or corporate accounting—refers to accountants who work within a single organization’s internal finance team. Instead of serving multiple clients like public accountants, private accountants focus exclusively on managing and improving the financial health of their employer. Because every business and organization needs financial oversight, private accounting offers stable and diverse career opportunities across virtually every industry.

Education and Credentials for Private Accountants:

A bachelor’s degree in accounting is typically required to enter the private accounting field. Unlike public accounting, a CPA (Certified Public Accountant) license is not mandatory for career advancement, although it can still be advantageous.

Many professionals choose to pursue advanced credentials to enhance their expertise and career growth:

Master’s in Accounting (MAcc): Ideal for those seeking deeper technical knowledge in accounting and finance.

Master of Business Administration (MBA): Suited for professionals who want to build broader business and leadership skills alongside accounting expertise.

These advanced degrees can help private accountants move into management, strategy, or executive-level roles.

Key Responsibilities and Skills in Private Accounting:

The day-to-day duties of private accountants vary depending on their employer’s size, industry, and financial structure. However, most private accounting roles include some combination of the following core responsibilities:

Developing and maintaining efficient accounting processes and systems.

Planning and managing budgets while monitoring spending and financial performance.

Analyzing fiscal results and forecasting future financial outcomes.

Preparing financial statements and reports that support strategic decision-making by leadership.

To thrive in this profession, private accountants need both technical expertise and strong interpersonal abilities. Essential skills include:

1. Data Analysis and Forecasting

Private accountants must leverage modern accounting software and data analytics tools to interpret financial information and identify trends. Skills in data visualization, modeling, and forecasting are key to delivering actionable insights.

2. Clear Communication

Accountants often translate complex financial data into insights for non-financial leaders. The ability to communicate clearly, concisely, and effectively is essential for influencing business decisions.

3. Attention to Detail

Accuracy underpins every aspect of accounting. Detail orientation extends beyond calculations—it also means managing time efficiently and meeting critical deadlines.

4. Self-Motivation and Initiative

Private accountants often work independently, especially in smaller organizations. A proactive approach to learning new skills and taking on additional responsibilities can accelerate career growth.

The Bottom Line

Private accounting is a versatile and rewarding career path for those who enjoy working with numbers, solving financial problems, and contributing directly to an organization’s success. With opportunities across all industries and room for continuous growth, it’s an excellent choice for professionals seeking both stability and advancement in the world of finance.