Public Accounting vs Industry, What are the Pros and Cons
When it comes to a career in accounting, there are two main paths to choose from: public accounting and industry accounting. Both paths offer unique challenges and opportunities, but they also have their own set of pros and cons. In this blog post, we’ll explore the key differences between working in public accounting and industry accounting so you can better understand which path is right for you.
Public Accounting
Public accounting refers to working for an accounting firm that provides services to a variety of clients. These services may include audit, tax, and consulting services. Public accounting firms range in size from small, local firms to large, international firms.
Some of the pros of working in public accounting include:
- Variety of clients: Public accounting firms work with a wide range of clients, which means you will have the opportunity to work on different projects and industries.
- Variety of services: Public accounting firms offer a variety of services, which means you will have the opportunity to work on different projects and develop a wide range of skills.
- Networking: Public accounting firms provide opportunities to network with other professionals and build relationships in the industry.
- Professional development: Public accounting firms often invest in their employees’ professional development, which can lead to career growth and advancement.
Some of the cons of working in public accounting include:
- Busy season: Public accounting firms experience a busy season, typically at the beginning of the calendar year, which can be demanding and stressful.
- Long hours: Public accounting firms may require long hours, especially during busy season.
- Limited control: Public accounting firms may have clients with specific requirements, which can limit your ability to make decisions and be creative in your work.
- Limited industry focus: Public accounting firms work with a wide range of clients, which means you may not have the opportunity to specialize in a specific industry.
Industry Accounting
Industry accounting refers to working for a specific company in a specific industry. This can include companies in manufacturing, retail, healthcare, and many other industries.
Some of the pros of working in industry accounting include:
- Specialization: Industry accounting allows you to specialize in a specific industry, which can lead to a deeper understanding of the industry and the ability to provide more valuable insights.
- Stability: Industry accounting provides more stability, as you will be working for one company rather than a variety of clients.
- Control: Industry accounting allows you to have more control over your work and the company’s financial decisions.
- More flexible schedule: Industry accounting is usually less demanding and less stressful than public accounting, which makes it more suitable for people with families, or who want a better work-life balance
Some of the cons of working in industry accounting include:
- Limited exposure: Industry accounting may limit your exposure to different industries and clients, which can limit your ability to develop a wide range of skills.
- Limited networking: Industry accounting may limit your ability to network with other professionals and build relationships in the industry.
- Limited professional development: Industry accounting may not provide the same opportunities for professional development as public accounting.
The current trends
The tried and true method for most top students used to be, going straight into public accounting out of school, ideally with one of the Big 4 firms. Working a couple of years while working on their CPA designation, then more often than not leaving for a good opportunity in industry. Alternatively, continuing with the firm if your goals were becoming a partner down the road.
Today, more and more graduates are going straight into industry, valuing occupational aspects like work life balance over the prestige of marquee accounting firms. In reaction to these trends, many firms have begun putting more effort into attracting new graduates with things like better prioritizing work life balance, offering more remote working options, and investing more in employee professional development.
TL;DR
Both public accounting and industry accounting offer unique challenges and opportunities. Public accounting provides a wide range of clients and services, as well as opportunities for networking and professional development, but it can also be demanding and stressful. Industry accounting allows for specialization and control, but it may limit your exposure and networking opportunities.
Ultimately, the choice between the two paths depends on your personal preferences, goals, and lifestyle. It’s important to weigh the pros and cons and consult with a mentor or advisor to determine which path is right for you.
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