Public vs. Private Accounting Career: Explaining the Difference for 2025

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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Aspiring accountants often face a critical decision: should they pursue a career in public or private accounting? In 2023, about 1.6 million accountants and auditors held jobs, highlighting the significant opportunities within this field. Choosing the right path early on is key to a successful career.

Drawing on over ten years of expertise in career planning, our team uses only reliable information to clearly explain the differences between public and private accounting. This article will help readers understand the typical duties, work settings, and career growth in each area. By exploring these key aspects, students and anyone interested in accounting can confidently determine which sector best aligns with their individual goals and ambitions.

Key Things You Should Know About Public vs. Private Accounting Career  

• Public accounting involves external client-based work such as auditing and tax preparation, while private accounting focuses internally on a single organization's financial management, including budgeting and internal controls.
• While a Bachelor of Science (BS) in Accounting is the most common undergraduate degree for both (71.2 %), a master's degree is particularly advantageous in public accounting for CPA eligibility and faster career advancement, whereas in private accounting, it primarily enhances qualifications for senior strategic roles.
• For those developing specific accounting skills, particularly for both public and private accounting roles, Generally Accepted Accounting Principles (GAAP) constitutes 5.01% of the skill focus.

Table of Contents 

1. What are the main differences between public and private accounting careers?
2. What undergraduate degrees are most common for public and private accountants?
3. How does the importance of a master's degree differ between public and private accounting?
4. What technical skills are essential for both public and private accountants?
5. How does the work culture and environment differ between public and private accounting?
6. Is it common to switch from public accounting to private accounting later in a career?
7. Is it easier to specialize early in your career in public or private accounting?
8. What are the career advancement opportunities for public and private accountants? 
9. What challenges differentiate public and private accounting careers?
10. Are benefits and total compensation packages comparable in public and private accounting careers?
11. How much more do public accountants make than private accountants?
12. What are the job trends for public and private accountants?
13. Are affordable online accounting degrees a smart investment for your accounting career?
14. Other Things You Should Know About Public vs. Private Accounting Career

What are the main differences between public and private accounting careers?

The fundamental difference between public and private accounting careers lies primarily in their work environment and employer. Public accountants operate externally. They serve diverse clients across various industries through accounting firms or independent consulting. On the other hand, private accountants function internally, dedicated solely to managing the financial affairs of a single organization. 

Public accountants focus on external-facing tasks such as:

• Auditing financial records
• Preparing taxes for various entities
• Ensuring financial compliance for public disclosure, often reviewing and validating financial information objectively

In contrast, private accountants handle the internal financial management of their employing organization. Their tasks include:

• Performing daily record-keeping
• Developing and managing budgets
• Implementing and overseeing internal controls
• Generating management reports

What undergraduate degrees are most common for public and private accountants?

The most common undergraduate degrees for both public and private accountants are closely related to accounting and business, but with some variations depending on career focus:

Common Undergraduate Degrees for Public and Private Accountants

Bachelor of Science (BS) in Accounting

This is the most common and traditional undergraduate degree for aspiring accountants. BS programs emphasize analytical, math, and science skills. They cover financial analysis, auditing, taxation, and accounting principles. Such programs prepare students for Certified Public Accountant (CPA) licensure, which is essential for public accounting careers but also beneficial for private accounting.

A CPA certification is required to advance to managerial roles. CPAs can file reports with regulatory bodies like the SEC and must maintain continuing education. Other certifications, such as Certified Internal Auditor (CIA) or Certified Management Accountant (CMA), are common and beneficial for career growth. 

Bachelor of Accountancy (BAcc, BAccty, or BAcy)

In the U.S. and internationally, this degree is recognized as a professional accounting qualification. It focuses specifically on accounting practice and is often accredited by professional bodies, facilitating certification processes such as CPA or Chartered Accountant (CA).

Bachelor of Arts (BA) in Accounting

This degree combines accounting with a broader liberal arts education and may appeal to those wanting a more diverse academic background. It can lead to accounting careers but is less specialized than a BS or BAcc.

Bachelor of Business Administration (BBA) or Bachelor of Commerce (BCom) with Accounting Concentration

These degrees blend business management and accounting coursework. They are common for students aiming for private accounting roles, especially in corporate finance or managerial accounting, where broader business skills are valuable.

Do you know that accounting is the top or best business administration concentration in terms of popularity?

Specialized Accounting Degrees

Some students pursue degrees in specialized areas such as forensic accounting, managerial accounting, or accounting information systems. These degrees prepare candidates for niche roles within public or private accounting sectors, often including auditing, fraud investigation, tax, and business law coursework.

How does the importance of a master's degree differ between public and private accounting?

The importance of a master’s degree differs between public and private accounting primarily in how it influences career advancement, certification eligibility, and earning potential.

Public Accounting

• Certification Preparation: A master’s degree in accounting is particularly valuable in public accounting because it helps candidates meet the 150-credit-hour education requirement to sit for the CPA exam.
• Career Advancement: It prepares graduates for higher-level roles such as audit manager, tax director, or partner track positions by providing advanced technical knowledge and leadership skills. Exploring affordable doctoral programs in leadership can further enhance these executive capabilities.
• Earning Potential: Master’s degree holders in public accounting typically command higher starting salaries and faster salary growth compared to those with only a bachelor’s degree.
• Distinguishing Factor: Public accounting is competitive and often structured around certifications and credentials; a master’s degree helps candidates stand out and may accelerate promotion opportunities within firms.

Private Accounting

• Broader Career Opportunities: In private accounting, a master’s degree enhances qualifications for senior financial roles such as corporate controller, finance manager, or Chief Financial Officer (CFO), where strategic financial management and leadership are critical.
• Skill Enhancement: The degree provides deeper knowledge in areas like financial analysis, strategic management, and complex reporting, which are essential for internal decision-making and corporate governance.
• Salary and Advancement: Private accountants with a master’s degree often experience higher salaries and quicker advancement to management or executive roles.
• Less Certification-Driven: While beneficial, a master’s degree is not as critical for certification eligibility (e.g., CPA) in private accounting as it is in public accounting, but it still supports professional development and career growth. For those considering this path, exploring options like the cheapest online master's in finance can provide a cost-effective way to gain advanced skills and enhance career prospects without the higher investment of traditional programs.

The chart below shows the most common degrees accountants take. 

What technical skills are essential for both public and private accountants?

The following technical skills for both public and private accountants ensure accuracy, compliance, and strategic financial management across various sectors.

Key Technical Skills for Accountants

1. Knowledge of Accounting Standards 

In the United States, knowledge of accounting standards primarily means a thorough understanding of GAAP, which is the mandatory framework for financial reporting by public companies and many other entities. International Financial Reporting Standards (IFRS), while widely used internationally, are not required for domestic public companies in the U.S. 

The U.S. Securities and Exchange Commission (SEC) mandates the use of GAAP for domestic issuers but permits foreign private issuers to use IFRS if they choose. For private companies in the U.S., there is no centralized requirement to use GAAP or IFRS; some may opt to use IFRS for SMEs or other frameworks, but GAAP remains the dominant standard. 

2. Financial Reporting

The ability to prepare, analyze, and present accurate financial statements such as balance sheets, income statements, and cash flow statements is fundamental. This skill involves applying accounting principles correctly and ensuring reports meet regulatory standards, supporting internal decision-making, and external stakeholder requirements.

3. Proficiency in Accounting Software and ERP Systems

Technical proficiency with accounting software like QuickBooks, Xero, and Sage is essential for managing day-to-day accounting tasks efficiently. Additionally, knowledge of Enterprise Resource Planning (ERP) systems such as SAP, Oracle NetSuite, and Microsoft Dynamics is crucial for handling complex financial data in larger organizations. Pursuing an online technology degree can provide the comprehensive technical foundation needed to master these systems and adapt to future innovations in accounting.

4. Tax Compliance and Preparation

Accountants must understand current tax laws and regulations to accurately prepare and file tax returns, minimize liabilities, and ensure compliance. This includes familiarity with digital tax systems and the ability to navigate complex tax frameworks, which is vital for both public accountants (who may prepare taxes for clients) and private accountants (who manage corporate tax obligations).

5. Auditing and Assurance

Skills in auditing—both internal and external—are necessary to verify financial accuracy and compliance with laws and standards. Accountants must identify discrepancies, assess internal controls, and use digital auditing tools to enhance audit efficiency and reliability.

6. Budgeting, Forecasting, and Cost Accounting

Accountants help organizations plan financially by developing budgets and forecasting future financial trends based on historical data and market analysis. Cost accounting skills enable them to analyze and control operational costs, improving profitability and strategic pricing decisions.

7. Analytical and Problem-Solving Skills

Interpreting financial data to identify trends, assess risks, and provide actionable insights is critical. Accountants use tools like Excel, Power BI, and Tableau for financial analysis and must be capable of solving complex financial problems to maintain accuracy and compliance.

8. Understanding of Emerging Technologies

Familiarity with digital ledger technologies (blockchain), artificial intelligence (AI), and robotic process automation (RPA) tools is increasingly important. These technologies improve transaction security, automate repetitive tasks, and enhance predictive financial analysis, making accountants more efficient and effective. For those looking to specialize in the AI aspect, even the cheapest online masters in artificial intelligence could provide a significant advantage in this evolving landscape.

9. Regulatory Knowledge and Internal Controls

Accountants must stay current with evolving financial regulations and implement internal controls to safeguard assets and ensure compliance. This includes knowledge of frameworks like Sarbanes-Oxley (SOX) and the ability to design and monitor control systems that prevent fraud and errors.

10. Spreadsheet Proficiency

Advanced skills in spreadsheet programs, including the use of pivot tables, formulas, and charts, are essential for organizing, analyzing, and presenting large datasets quickly and accurately. 

The chart below shows the most in-demand accountant skills based on job postings. 

How does the work culture and environment differ between public and private accounting?

Public accountants typically work long, often unpredictable hours with frequent client visits and diverse assignments, especially during busy seasons like tax time. Their environment is fast-paced, requiring flexibility and strong client communication. In contrast, private accountants usually have more stable, predictable hours, working within a single organization’s office. They experience less travel, more routine tasks, and closer collaboration with internal teams, contributing to a generally less stressful and more consistent work culture. 

If you are planning to pursue a graduate degree and are confused between getting an MBA or a Master of Professional Accountancy, you can always pursue both. In fact, an MBA/MPAcc is one of the best online dual MBA programs available.

Is it common to switch from public accounting to private accounting later in a career?

It is very common for accountants to start their careers in public accounting and later transition to private accounting. This path is often advantageous because public accounting experience, especially at large firms, tends to accelerate professional development and promotions, allowing accountants to enter private industry at higher levels. Many public accountants leave after a few years due to the demanding work environment and seek the more stable, less stressful conditions typical of private accounting roles. This career shift is widely recognized and accepted in the profession.

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Is it easier to specialize early in your career in public or private accounting?

It is generally easier to specialize early in your career in public accounting compared to private accounting. Here are a few reasons why: 

• Public accounting firms offer opportunities to specialize in areas such as audit, tax, or advisory services from early on because you work with a variety of clients and industries.
• The work is project- and client-based, allowing accountants to develop deep expertise in specific accounting disciplines like tax or audit relatively quickly.
• Public accounting firms often have structured training programs and clear career paths that encourage specialization and professional development, including obtaining CPA certification.
• Advancement and specialization opportunities tend to present themselves sooner in public accounting due to the variety and volume of work and clients.

What are the career advancement opportunities for public and private accountants? 

Career advancement in public accounting typically follows a structured path from entry-level associate to senior, manager, senior manager, and partner roles, with early specialization and CPA certification enhancing progression. Public accountants often gain diverse client experience and can transition into leadership or advisory roles. 

In private accounting, advancement usually moves from staff accountant to senior accountant, manager, controller, and CFO, focusing on deep industry knowledge within one company and offering more stability but slower progression. Both paths reward certifications and leadership skill development for senior roles.

For those looking to accelerate their career trajectory in either sector, an accelerated MBA program can provide the advanced business acumen and leadership skills needed for senior roles.

What challenges differentiate public and private accounting careers?

Public accounting professionals often grapple with demanding client expectations, seasonal workload fluctuations, and extensive travel obligations that require swift adaptation and stress management. In contrast, private accounting roles can present challenges such as limited exposure to diverse industry practices, slower career dynamics, and navigating internal organizational changes. Addressing these obstacles frequently involves continuous professional development, efficient time management, and targeted skill enhancement through further education—consider exploring cheapest online accounting associate degrees to build a strong foundational expertise.

Are benefits and total compensation packages comparable in public and private accounting careers?

Evaluating career opportunities requires looking beyond base salaries. Public accounting roles often incorporate performance-based incentives, profit sharing, and variable bonuses, while private accounting positions typically offer comprehensive benefits packages, long-term retirement plans, and stock options. This comparison of total compensation—including non-monetary perks—can be essential when aligning career choices with financial goals. For an in-depth analysis of lucrative opportunities, consider the highest paying accounting jobs.

How much more do public accountants make than private accountants?

Salaries for public accountants are generally higher than those of private accountants. 

• Public Accountant: Around $91,957 per year 
• Private Accountant: Around $68,326 per year

Meanwhile, the chart below shows the top five best-paying related private accountant jobs in the United States.

What are the job trends for public and private accountants?

Job trends for public and private accountants in 2025 show strong demand but also notable challenges:

• Employment Growth: The overall employment of accountants and auditors is projected to grow 6% from 2023 to 2033, faster than the average for all occupations. 
• Talent Shortages: There is a critical shortage of accountants as fewer students pursue accounting credentials like the CPA. Public accountants, in particular, are leaving their jobs seeking better work-life balance, which impacts staffing levels in both sectors. Now, if you want to spread love for accounting, consider teaching as an alternative career. Look into the cheapest online alteRNative teacher certification programs available.
• Hiring Trends: Most finance and accounting leaders plan to expand or maintain staffing levels in 2025. About 65% of managers intend to hire for new permanent roles, while 31% are filling vacancies. However, 93% of leaders report difficulty securing qualified professionals, leading to increased use of contract talent (68%). 

Here’s What Graduates Have to Say about Public vs. Private Accounting Career

The diverse client engagements in public accounting constantly challenge me to learn new industries and business models. It's incredibly rewarding to help so many different companies navigate their financial landscapes, and I appreciate the rapid development of my analytical skills. This path has truly broadened my professional perspective. — Michaela 

As a private accountant, I value the deep understanding I gain of one specific company's operations and financial health. There's a true sense of ownership in contributing directly to its growth and efficiency, and I feel a strong connection to the team's shared goals. My work provides a consistent sense of purpose and stability. — Yoona

The dynamic nature of public accounting has exposed me to a vast array of complex financial situations and problem-solving opportunities. I've developed a strong ability to adapt quickly and think critically under pressure, which has been invaluable for my professional growth. Every engagement offers a chance to build specialized expertise. — Sonya 

Are affordable online accounting degrees a smart investment for your accounting career?

Selecting a cost-effective online accounting degree can provide a strong foundation without compromising quality. Many accredited programs offer rigorous curricula and flexible learning schedules, enabling students to quickly adapt to evolving industry demands while keeping educational costs in check. This approach allows aspiring accountants to build essential technical skills and industry knowledge, supporting career growth even when financial resources are limited. For further details on budget-friendly options, consider exploring our guide on the cheapest online accounting programs.

Key Findings

• Approximately 1.6 million accountants and auditors held jobs in 2023.
• The overall employment of accountants and auditors is projected to grow 6% from 2023 to 2033.
• In 2025, about 65% of finance and accounting managers plan to hire for new permanent roles.
• Public accountants generally earn around $91,957 per year, while private accountants earn around $68,326 per year.
• A significant majority, 93%, of leaders report difficulty securing qualified accounting professionals in 2025.

Other Things You Should Know About Public vs. Private Accounting Career 

Is public accounting in demand?

Public accounting is experiencing high demand in 2025, but the sector faces fierce talent competition. This is due to talent shortages, making recruitment a significant challenge. Beyond traditional bookkeeping, public accountants are increasingly taking on advisory and strategic roles to meet evolving client demands. The profession is also transforming with new responsibilities like sustainability reporting, further intensifying the need for skilled professionals.

What is the least stressful accounting job?

The least stressful accounting jobs tend to be in corporate or private accounting roles rather than public accounting. Positions such as bookkeepers, payroll specialists, and accounting clerks often offer more regular hours, less pressure, and greater work-life balance. For example, bookkeepers typically work 9-to-5 schedules with less stress and flexibility, especially in industries like commercial construction or smaller companies. Corporate accounting generally provides a more consistent schedule and lower stress compared to public accounting, which is known for long hours and high pressure. Finance and insurance sectors also rank among the least stressful industries overall. 

Are CPAs highly respected?

Yes, CPAs are highly respected professionals due to their advanced technical competencies, ethical standards, and critical role in financial integrity. The CPA designation signifies a rigorous qualification process and ongoing commitment to professional development, which builds credibility and trust with clients and employers. CPAs are trusted advisors who uphold values like integrity, objectivity, and professionalism, making them essential in public accounting, private practice, government, and academia. 

Is private accounting a good career? 

Private accounting is a good career choice, offering stability, steady career progression, and opportunities to contribute strategically within organizations. While automation is reducing some routine tasks, private accountants who develop skills in technology, data analytics, and compliance will remain highly valuable.

References:  

• American University, Kogod School of Business. (2025, April 22). 2025 In-Demand Finance and Accounting Roles and Hiring Trends. https://careers.kogod.american.edu/blog/2025/04/22/2025-in-demand-finance-and-accounting-roles-and-hiring-trends
• Indeed. (2025). Certified public accountant salary in United States. Retrieved May 26, 2025, from https://www.indeed.com/career/certified-public-accountant/salaries
• Reinstein, A., & Kaszak, S. E. (2024). Addressing the shortage of accountants: Suggestions for academe and the profession. Journal of Accounting Education, 66(C), 100888.  https://www.sciencedirect.com/science/article/pii/S0748575124000046
• U.S. Bureau of Labor Statistics. (n.d.). Accountants and Auditors: Occupational Outlook Handbook. U.S. Department of Labor. Retrieved May 15, 2025, from https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm
• Zippia. (2025, January 8). What is an accountant and how to become one. https://www.zippia.com/accountant-jobs