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“You can think of public accountants as “external” accountants who
provides services to clients such as audit, consulting and tax planning
services.”
“Private, or non-public accountants are “internal” accountants who
work in a company, non-profit organization or a government agency. You can
work in the financial accounting, management (cost) accounting, budgeting,
corporate planning, treasury or in the internal audit department within the
corporation.”
For public accounting, you’ll need:
Good People Skills. Public
accounting is a client oriented business which means that you need good
people skill. For example, you’ll need to communicate effectively with your
clients when trying to understand the client’s business and to request
information for your analysis. As you move towards partnership, you’ll
acquire important skill in how to deal with difficult clients and getting the
information you need at the same time.
Good Sales Skills. This is
people skill in the next level, and is required if you aspire to become a
partner or own your CPA firm. In short, you need to solicit business for your
firm and good sales and marketing skill (and keeping your professionalism at
the same time) is a critical skill.
“For public accounting, you’ll experience:
More Stressful Environment.
Because you are dealing with a wide variety of people and demands, public
accountant’s work is inevitably more stressful. On the other hand, private
accountants work with the same group of colleagues and tend to have a more
relaxed lifestyle.
Longer Hours. Similarly,
because you are working with clients vs colleagues, the deadlines are hard
deadlines and over-time / late nights are common especially for junior
accountants (associates and senior associates). Other than the account-closing month,
private accountants have more or less a 9-5 job.
Less Stability. While
accounting job is considered one of the safest jobs, the boom and bust of
economic cycle does affect CPA firms as clients cut budget and corporate
finance activities. Within public accounting, audit and tax teams are more
secure than advisory teams for this reason.
Better Exposure. Having
said that, working in a public accounting firm expose you to a wide variety
of projects in different industries and this is an unrivalled experience when
compared to an accounting role in the corporate world.
More Doors Opened. Because of this, an experience in CPA firm
(especially Big 4) is excellent for your resume, and you can always go from
public accounting to private accounting but not vice versa.”
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employer organization
A major difference between corporate and public accounting is the
type of company that you will work for. In most cases, public accountants
work for a public accounting firm. This type of company is usually a
partnership, sole proprietor, or other type of company that isn't publicly
traded. In many cases, public accountants can, over time, move up through the
firm and eventually have an opportunity to become an owner. Corporate
accountants work in the accounting function of companies that produce goods
and services, as opposed to selling accounting services. The organization of
these companies varies, but many are publicly traded.
Work hours
Corporate accountants typically work long hours around the monthly
close period, when the company completes the accounting records each month.
In addition, corporate accountants work longer hours around the annual audit
and quarterly reporting dates. Public accountants tend to work longer hours
during the "busy season" of their clients. Usually, this is from
January to April. However, as public accountants move up through the
organization, this busy season can sometimes extend into a greater part of
the year.
Breadth vs. Depth
Because corporate accountants spend all of their time working for one
company, they are extremely knowledgable about the accounting for the company
they work for. This makes an accomplished corporate accountant valuable to
her company and companies that sell similar products and services. However,
public accountants frequently serve many clients, sometimes in different
industries. This gives them a breadth of knowledge about accounting issues at
a variety of companies. This makes public accountants valuable to companies
that are looking for employees with a large base of knowledge.
Stability
Public accountants may serve a different client each week or even
travel to different client sites in the same day; corporate accountants will
work for the same employer all year. If you are looking for a job where you
have a desk or office and want to interact with the same people each day,
public accounting is not for you, and corporate accounting may be better
suited for your personality. However, if you are interested in seeing how
different businesses operate and do not mind bouncing among clients, public
accounting might be a better fit.
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Public Accountant Job Duties
General responsibilities shared by all public accountants include
preparing and verifying vital financial documents, analyzing budgets and
planning finances. Public accountants give advice and provide basic financial
information to a range of clients, from individuals to corporations. They
also perform bookkeeping, consulting and auditing tasks.
However, the duties of a public accountant vary by individual
concentration; for example, some public accountants specialize in tax issues.
Their responsibilities involve working with income tax returns and filing
taxes in accordance with rules and regulations. Another specialty is forensic
accounting, a branch that involves investigating financial fraud.
Employment outlook public acs.
The U.S. Bureau of Labor Statistics has projected employment growth
for all types of accountants, including public accountants, to rise at a rate
of 22% between 2008 and 2018 (www.bls.gov). Job prospects should be good for
accountants; however, CPAs should have better job prospects than their
non-certified counterparts, due to their additional training and experience.
Public Accountant Salary Information
PayScale.com reported in July 2010 that public accountants earned
salaries ranging between $41,920 and $58,520. Annual salaries ranged from
$47,901 to $71,173 for Certified Public Accountants. This wage difference can
be attributed to the added requirements CPAs must meet in order to earn their
distinction.
Education (private acc)
A private accountant generally requires a four-year degree with an
emphasis in accounting, business, economics or a related field. Courses in
administration, business organization management, and business policies and
procedures are also helpful. Some organizations and businesses prefer
accounting candidates with a master's degree. Certification is also available
for specific job functions, such as in payroll. Certification provides
credibility for the individual's training, skills and experience.
Duties and Responsibilities
The private accountant performs a variety of tasks depending upon the
size of the organization for which she works. In larger structures, private
accountants are usually assigned to specific areas, such as general ledger --
the master record of all accounts and transactions -- accounts payable,
accounts receivable, payroll or taxes. Accounts payable involves bills that
need to be paid, while accounts receivable deals with income and invoice
creation for clients. The private accountant's job in her area of specialty
is to ensure that financial transactions are accurate and current. She might
review financial statements, provide analysis of data and create reports.
Earnings and Benefits
Private accountants typically work a 40-hour week as exempt employees
with a salary. The U.S. Bureau of Labor Statistics lists the median annual
wage for all accountants in 2010 at $61,690 in May. The top 10 percent can
earn more than $106,880 per year. Most private accountants receive vacation
pay, sick leave, and health and dental benefits. Some organizations offer
401k benefit plan or retirement plans for accountants after the accountant
meets internal vesting requirements.
Career Opportunities and Outlook
The bureau reports that accountant jobs are expected to grow as fast
as most occupations, at 16 percent from 2010 to 2020. Private accountants can
work as cost accountants in manufacturing or companies with product lines, as
accounting supervisors, payroll accountants or accounting analysts. After
gaining on-the-job experience, private accountants are often promoted to
positions of management. Accountants with graduate degrees can be promoted to
controller or executive-level management positions.
“At present, there are approximately 28.5 million private companies
in the United States and approximately 14,000 public companies. Public
companies have financial reporting requirements to the Securities and
Exchange Commission (SEC) pursuant to the Securities Act of 1933 and the
Securities Exchange Act of 1934.”
“Many of the private companies in the U.S. are very small businesses
and thus have no reporting requirements other than filing income tax returns.
There are, however, significant number of private companies that prepare
financial statements in accordance with U.S. GAAP because such financial
statements are required by lenders,
other creditors, bonding and credit-rating agencies, regulators,
business owners, and
others. Many private companies preparing U.S. GAAP financial
statements must issue
audited, reviewed, or compiled financial
statements.”
Most individuals who understand the basics of financial reporting are
familiar with the phrase generally accepted accounting principles (GAAP) and
will readily identify the Financial Accounting Standards Board (FASB) as the
standard-setting body in the United States responsible for establishing
accounting principles for nongovernmental entities. However, some may not be
aware that there is no single reference source for GAAP because these
principles are derived from a variety of sources. For example, although the
FASB is responsible for issuing FASB Statements of Financial Accounting
Standards, Interpretations, and Technical Bulletins, the American Institute
of Certified Public Accountants (AICPA) issues Statements of Position, Audit
and Accounting Guides, and Practice Bulletins, and the FASB Emerging Issues
Task Force (EITF) issues EITF Abstracts.
It may seem that accounting principles could be generally accepted
because of popular vote or consensus of opinion. However, generally accepted
accounting principles is a technical accounting phrase defined in Accounting
Principles Board (APB) Statement No. 4, Basic Concepts and Accounting
Principles Underlying Financial Statement of Business Enterprises, as
"the conventions, rules, and procedures that define accepted accounting
practice at a particular time." GAAP includes not only broad guidelines
of general application but also detailed practices and procedures that
provide a standard by which to measure financial presentations. For the most
part, in financial reporting, generally accepted implies substantial
authoritative support.
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Education (private acc)
A private accountant generally requires a four-year degree with an
emphasis in accounting, business, economics or a related field. Courses in
administration, business organization management, and business policies and
procedures are also helpful. Some organizations and businesses prefer
accounting candidates with a master's degree. Certification is also available
for specific job functions, such as in payroll. Certification provides
credibility for the individual's training, skills and experience.
Duties and Responsibilities
The private accountant performs a variety of tasks depending upon the
size of the organization for which she works. In larger structures, private
accountants are usually assigned to specific areas, such as general ledger --
the master record of all accounts and transactions -- accounts payable,
accounts receivable, payroll or taxes. Accounts payable involves bills that
need to be paid, while accounts receivable deals with income and invoice
creation for clients. The private accountant's job in her area of specialty
is to ensure that financial transactions are accurate and current. She might
review financial statements, provide analysis of data and create reports.
Earnings and Benefits
Private accountants typically work a 40-hour week as exempt employees
with a salary. The U.S. Bureau of Labor Statistics lists the median annual
wage for all accountants in 2010 at $61,690 in May. The top 10 percent can
earn more than $106,880 per year. Most private accountants receive vacation
pay, sick leave, and health and dental benefits. Some organizations offer
401k benefit plan or retirement plans for accountants after the accountant
meets internal vesting requirements.
Career Opportunities and
Outlook
The bureau reports that accountant jobs are expected to grow as fast
as most occupations, at 16 percent from 2010 to 2020. Private accountants can
work as cost accountants in manufacturing or companies with product lines, as
accounting supervisors, payroll accountants or accounting analysts. After
gaining on-the-job experience, private accountants are often promoted to
positions of management. Accountants with graduate degrees can be promoted to
controller or executive-level management positions.
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|
“At present, there are approximately 28.5 million private companies
in the United States and approximately 14,000 public companies. Public companies
have financial reporting requirements to the Securities and Exchange Commission
(SEC) pursuant to the Securities Act of 1933 and the Securities Exchange Act of
1934.”
“Many of the private companies in the U.S. are very small businesses
and thus have no reporting requirements other than filing income tax returns.
There are, however, significant number of private companies that prepare
financial statements in accordance with U.S. GAAP because such financial
statements are required by lenders,
other creditors, bonding and credit-rating agencies, regulators,
business owners, and
others. Many private companies preparing U.S. GAAP financial
statements must issue
audited, reviewed, or compiled financial
statements.”
|
|
Most individuals who understand the basics of financial reporting are
familiar with the phrase generally accepted accounting principles (GAAP) and
will readily identify the Financial Accounting Standards Board (FASB) as the
standard-setting body in the United States responsible for establishing
accounting principles for nongovernmental entities. However, some may not be
aware that there is no single reference source for GAAP because these
principles are derived from a variety of sources. For example, although the
FASB is responsible for issuing FASB Statements of Financial Accounting
Standards, Interpretations, and Technical Bulletins, the American Institute
of Certified Public Accountants (AICPA) issues Statements of Position, Audit
and Accounting Guides, and Practice Bulletins, and the FASB Emerging Issues
Task Force (EITF) issues EITF Abstracts.
It may seem that accounting principles could be generally accepted
because of popular vote or consensus of opinion. However, generally accepted
accounting principles is a technical accounting phrase defined in Accounting
Principles Board (APB) Statement No. 4, Basic Concepts and Accounting
Principles Underlying Financial Statement of Business Enterprises, as
"the conventions, rules, and procedures that define accepted accounting
practice at a particular time."
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|
Staff auditors perform the meat of an audit, engaging in the often
mentioned "ticking and tying" activities, i.e., analyzing and
verifying the information contained in the myriad ledgers and statements
provided by the client. Under the supervision of an audit senior, they will
work with the client to obtain information and determine the validity and
accuracy of the accounting records. It is the staff accountant's
responsibility to investigate specific accounts assigned to them and to
identify, resolve and document any material issues. Staff auditors will often
start to direct small audits (and will be referred to as the "acting
senior" on the engagement) in their second years.
Tax Staff (year 1-3). Like their audit counterparts, tax staff
personnel perform the meat of the tax work. They prepare tax returns,
research tax issues and counsel clients on tax matters under the supervision
of a tax senior and/or tax manager. Generally, tax staff do not have as much
direct client contact as their audit counterparts. This level encompasses a
significant amount of learning and training as the tax staff gets up to speed
regarding basic aspects of income tax reporting, compliance and analysis.
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Saturday, February 23, 2013
essay 2 - what my research told me
The following is the information i found in my research on public accounting vs. public accounting.
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