Demand for accounting professionals is strong. The US Bureau of Labor Statistics (BLS) projects employment of accountants and auditors to grow 5% through 2034. That’s faster than the average for all occupations.  

That’s great news if you’re considering this profession. The next question is where you want to practice: public or private accounting? 

Public accountants generally work with multiple clients, including businesses and individuals. Private accountants usually work for a single organization as part of its internal team. 

Both involve things like tax work and financial reporting. But the 2 paths come with distinct requirements and outcomes. Learn the differences between public accounting and private accounting so you can figure out which one fits you best. 

Key Points

• Public vs. private accounting essentially comes down to the environment. Public means multiple clients and a faster pace, while private means 1 organization and deeper business knowledge. 
• Demand is strong for both. The BLS projects 5% growth through 2034. 
• Per the American Institute of Certified Public Accountants (AICPA), public accountants with a CPA earn $60,000–$200,000 annually. Private accountants average about $58,000–$88,000, according to Indeed, with senior roles like CFO reaching into the 6 figures. 
• Public accountants typically need to earn their CPA to advance their career. That’s not the case for private accountants, who might find the Certified Management Accountant^® (CMA) credential to be a better fit. 
• You could start out as a public or private accountant and transition later if it better fits your personal and professional goals. 

What Is Public Accounting?

The difference between private accounting and public accounting starts with the client dynamic and setting.  

Public accountants offer services to multiple clients simultaneously. That includes individuals and businesses. Some work in public accounting firms or for government agencies. Others go the nonprofit route or open their own firms. 

Public accountants typically need a bachelor’s degree or higher in a field like accounting or finance. Those who want to broaden their career options might pursue a CPA license. 

Key Responsibilities

Day-to-day work varies by role and specialization, but common responsibilities include: 

• Auditing financial statements for external clients (with CPA licensure) 
• Preparing and filing tax returns for businesses or individuals 
• Providing consulting and advisory services on areas like cash flow, investments, and strategic business decisions 
• Ensuring clients’ regulatory compliance with the IRS 
• Interpreting tax code to help clients optimize their tax position 
• Investigating financial crimes like embezzlement or contract disputes (forensic accounting) 
• Submit annual and quarterly reports to the Securities and Exchange Commission (SEC) 

CPAs are also expected to uphold American Institute of Certified Public Accountants (AICPA) ethical standards. That means staying objective and putting clients’ best interests first. 

What a Typical Day Looks Like

Public accountants usually work directly with clients, so the day-to-day tends to mix client-facing work with heads-down analysis. A typical day might involve: 

• Reviewing clients’ financial records 
• Testing internal controls during audit engagements 
• Preparing tax filings for small business clients or individuals 
• Meeting with new clients to advise on their tax situation 

Some public accountants work in relatively small firms with only a handful of other accountants. Others might work for a national or international business with hundreds or thousands of employees. 

Workload depends heavily on how many clients you have, but accountants tend to work standard 40-hour workweeks. During quarterly audits and tax season (January through mid- April), overtime might be required to keep up with higher volume. 

What Is Private Accounting?

Private accountants work for a single corporation rather than multiple clients. They’re in-house, so to speak. 

Private accountants don’t need a CPA license, though some get it to broaden their career options. What you do need is at least a bachelor’s degree in accounting or a related field. Getting a master’s degree in accounting or even business administration could make you more competitive in the field. The Certified Management Accountant^® (CMA) is another advanced credential worth considering. 

All can help pave the way to more advanced opportunities, such as an accounting manager or controller role. 

Key Responsibilities

While a private accountant’s actual responsibilities vary by sector and job title, they typically include: 

• Recording and reconciling financial transactions 
• Preparing internal financial statements 
• Managing corporate budgets year-round 
• Financial forecasting for insights into the company’s fiscal performance 
• Maintaining internal controls to ensure integrity across accounting and financial reporting 
• Supporting month-end and year-end close processes 
• Collaborating across departments on strategic financial decisions 

What a Typical Day Looks Like

As a private accountant, you might work for a single corporation, government agency, or nonprofit. That’s not that different from a typical public accountant.  

A typical day might involve: 

• Reconciling accounts during month-end close 
• Preparing budget variance reports for the higher-ups 
• Meeting with the operations team about cost projections 
• Analyzing data to glean valuable financial insights 
• Reviewing internal controls ahead of an external audit 

Private accounting work is generally more predictable than public accounting. That doesn’t mean it’s slow. You’ll still work a full-time schedule. But because you’re focused on 1 organization rather than juggling multiple clients, the rhythm tends to be steadier. 

Key Differences Between Public and Private Accounting

Wherever you’re at in your career (or schooling), it’s never too soon to think about your next step. To help you decide, here are the biggest differences between private accounting and public accounting. 

	Public accounting	Private accounting
Clients and stakeholders	Multiple external clients	Single organization’s internal stakeholders
Scope of work	Audit Tax Consulting Advisory	Financial reporting Budgeting Forecasting Internal controls management
Work-life balance	40 hours per week (plus overtime during busy season) Workload varies by clients’ needs	40 hours per week usually Generally more predictable workload
Salary and compensation	$60,000–$70,000 (entry level) $85,000–$110,000 (midlevel) $120,00–$200,000 (senior level) Source: AICPA	$58,000–$88,000 (average) Source: Indeed
Potential credentials	Certified public accountant (CPA)	Master’s degree (preferred)

Clients and Stakeholders

Public accountants work with multiple external clients across industries. This includes small businesses and individuals. 

Private accountants work with 1 organization’s financial team. They serve internal stakeholders, including management, department heads, and board leaders. 

Scope of Work

Public accountants typically have a broader scope of work. Most public accounting firms organize their services around 4 main areas: audit, tax, consulting, and advisory. Specialization is possible, with forensic accounting being a common example. But the variety of clients means public accountants often need to be adaptable generalists, especially in their early years. 

Private accountants tend to have a narrower scope, but they also have a deeper understanding of the organization they’re working for. They’re often responsible for financial reporting processes and the management of internal controls. They also perform budget analysis and forecasting to guide the company’s financial stability and growth. 

Work-Life Balance

Most accountants work 40 hours a week, Monday through Friday. During busy tax season, public accountants may need to commit more hours to keep up with the workload. This is less common with private accountants, though it depends on the organization. 

Salary and Compensation

Public accountants generally have higher starting salaries with quicker early-career growth. According to the AICPA, public accountants with a CPA usually earn: 

• $60,000–$70,000 (entry level) 
• $85,000–$110,000 (midlevel) 
• $120,00–$200,000 (senior-level partners or CFOs) 

Private accountants may earn less when starting out, but their average salary is competitive at roughly $72,000. That sits within a broader range of $58,000–$88,000. In more senior roles (like CFO), earnings can reach 6 figures. Both types of accountants might also receive other forms of compensation, like bonuses or retirement benefits.  

Note that the BLS doesn’t separate public from private accountants in its data. That said, the agency reports a median annual wage of $83,680 for accountants and auditors overall (May 2025), with the lowest 10% earning under $56,020 and the top 10% earning more than $144,090. 

Certifications

The CPA license is the standard credential in public accounting. It’s required for certain services, like signing audit reports or representing clients before the IRS. 

While a private accountant can earn a CPA, it’s not necessarily required. A more targeted option for the private side is the CMA designation, which focuses on management accounting, financial planning, and strategic decision-making. 

Career Progression in Each Path

Establishing yourself as an accountant can pave the way to some serious career opportunities. But the best way to take advantage of them is to map out your rough trajectory early. Even if you don’t lock yourself into a specific plan, knowing where each can take you can help steer you down the right path. 

Public Accounting Progression

Career paths for public accountants (including those with a CPA license) include: 

• Public accounting roles (tax, audit, advisory) 
• Corporate accounting (internal audit, cost accounting, financial planning and analysis) 
• Government accounting 
• Nonprofit  
• Forensic accounting 
• Financial consulting 

And while your journey is your own, the typical career progression looks a little like this: 

• First 1–2 years: Staff accountant or associate 
• Next 2–4 years: Senior associate 
• Next 5–7 years: Managerial accountant 
• Next 8–10 years: Senior manager or director 
• Ultimately: Partner or firm owner 

Getting your CPA becomes more essential as you advance your career, especially past the manager level. 

Private Accounting Progression

As a private accountant, you’ll typically start out in an entry-level role like a staff accountant. From there, progression might look something like this: 

• Next 3–5 years: Senior accountant  
• Next 5–8 years: Accounting manager 
• Next 8–12 years: Controller 

From there, the next steps might be director of finance, vice president of finance, or chief financial officer (CFO). CFO compensation varies widely by company size and industry, but CFOs at mid-to-large companies can earn $300,000 or more in total compensation.  

Can You Switch Between Public and Private Accounting?

You can switch between public and private accounting. People make the move for all kinds of reasons: 

• They want better work-life balance or a different pace of work. 
• They’ve earned a credential (like a CPA or master’s degree) that opens up new options. 
• They want to pursue a different career path or industry specialty. 

A public-to-private switch might look like this: A public accountant spends a few years at a firm building a foundation and then transitions into private roles like senior accountant or accounting manager. 

A private-to-public switch might look like this: A private accountant earns their CPA while working in industry, then joins a public accounting firm—potentially at a level slightly below where they’d be in private, since they’re new to client service work and firm-side processes. 

Whichever direction you switch, the move can broaden your skill set and signal to employers that you’ve intentionally shaped your career. 

How to Decide Which Path Is Right for You

Choosing between public and private accounting doesn’t have to be agonizing. Both lead to strong careers. Here’s a starting point. 

Choose Public Accounting if…

• You want exposure to multiple industries and clients. 
• You thrive in fast-paced, varied environments. 
• You don’t mind working longer hours early in your career, potentially in exchange for accelerated growth. 
• You’re looking for the broadest range of exit opportunities down the road. 

Choose Private Accounting if…

• You’d rather work internally for 1 organization. 
• You value more predictable hours and steadier work-life balance, especially early on. 
• You want to be part of a company’s internal decision-making process. 
• You’re more interested in management accounting and long-term strategy than in audit or external client work. 

Not Sure Yet?

That’s normal. Many people figure it out by trying things, not by predicting in advance. Think about what matters most to you in your day-to-day work, and start building foundational skills in the meantime. 

Start Building Your Accounting Career

Now that you have a clearer picture of public vs. private accounting, the next step is building the foundational skills that apply to either path. Whichever direction you eventually choose, getting comfortable with the basics of accounting, tax, and bookkeeping will serve you well. 

Intuit Academy offers free, self-paced courses that can help you do exactly that. And you can earn Intuit Academy badges along the way to help qualify for entry-level roles, including tax and bookkeeping positions at Intuit. 

FAQs

Can you switch from public to private accounting (or vice versa) mid-career?

You can make the switch from public to private accounting, or from private to public accounting. Just know that it can take time to land a job on the other side. Studying for the CPA Exam alone can take 400 or more hours, but it is something you can do while working your regular job.  

Is a CPA license required for both paths?

You don’t need to get a CPA license to become a private accountant, but it will serve you well for more advanced roles. Private accountants can also benefit from getting their CMA credential, which can help build credibility with potential employers. 

Does public or private accounting pay more?

Starting salaries are fairly comparable between the 2.  

Public accountants with a CPA typically earn $60,000–$70,000 entry level, $85,000–$110,000 midlevel, and $120,000–$200,000 at senior partner or CFO levels. Private accountants average around $72,000, within a broader range of $58,000–$88,000. 

The BLS reports a median annual wage of $83,680 for accountants and auditors overall (May 2025), with the top 10% earning more than $141,420.