Tuesday, April 21, 2015

Basic Difference between Public Accounting and Nonpublic Accounting

When you are to pursue your studies in accounting and consider it to be your future work, then you would be left with two options, you have to choose from public accounting and non-public accounting. When you are a public accountant, you would be acting as a third party who would examine the accounts prepared by any concern, while as a non-public accountant, you would be maintained the accounts of any concern on behalf of the concern.
If you know the difference between public accounting and non-public accounting, it would be easy for you to pursue one.   

Public Accounting and Nonpublic Accounting

Being a student pursuing Public accounting, you would be trained to analyzing the accounting system, collecting various evidences, and testing out if all the assertions are correct. You would be trained of the accounting standards and need to check those.
However, if you take private accounting or non-public accounting as your specialization, you have to learn about the accounting transactions, recording them and maintaining them. Your knowledge would be limited to those areas where you would be accountable.
Certification and Experience
For being pursuing public accounting you would need certification from CPA or certified public accountant, whereas a private accountant would not need any such certifications. Depending upon the range of clients that you have, you experience would vary when you would be pursuing the job of public accountant, whereas as a private accountant your experience would be confined to the type of industry you are working.
Other differences
Apart from the basic differences mentioned, in public accounting, the work space would vary from one client to another. Hence, in some places when you can expect to have good people around you, somewhere things would be tough. In case of private accounting, you would be working with your colleagues in a more stable position where tensions would not be that much.

Again, in public accounting, there would be harsh deadlines that you have to follow, and one have to travel a lot, however, there would be no such requirement in case of private accounting. The exposure is much more in public accounting than in private accounting, thus while choosing one; you need to check out your qualities and skills.

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