Private accountants work for a single employer and perform various accounting functions, such as internal auditing and tax accounting. Public accountants work for multiple clients, gaining broad experience. Private accountants also perform important tasks such as internal audits and tax preparation, and offer a better work-life balance than public accountants.
A US private accountant works for a single employer, performing one or more different accounting functions, such as internal auditing, budget consolidation, tax accounting or cost accounting, among others. A private accountant may have a different title, such as “staff accountant”, “internal accountant” or “management accountant”, but they all perform essentially the same function. While many private accountants do not have a college degree in accounting, larger firms almost always require at least a bachelor’s degree, and many also require applicants to have some public accounting experience.
Although private accountants work for a single employer, public accountants perform accounting tasks for many different client companies and, by default, maintain a relationship with the companies for which they perform these services. They may be assigned to five or six companies over the course of a year, or even longer, and many never return to the same client. This gives them broad experience in different business structures and accounting situations. It is this experience that companies look for if they require applicants for their private accounting jobs to have public accounting experience.
One of the most important tasks a private accountant can be called upon to perform is an internal audit, which is a detailed investigation of all the different components of the company’s financial transactions. For example, a private accountant will thoroughly explore all documentation supporting a disbursement and ensure that all documentation is accurate and fairly reflects the transaction. In many cases, this includes verifying that goods or services have been received as invoiced and establishing internal control systems, if necessary, or monitoring them, if already in place. For example, one element of an internal control system is to record all amounts received regardless of the accounting process. A private accountant will monitor the register and ensure that any money received is handled properly.
Tax accounting is another important component of a private accountant’s job description. While many smaller companies routinely use a public accounting firm or certified public accountant (CPA) to do the actual preparation of tax returns, much of the preliminary work is done by the private accountant.
A common misunderstanding about the job of a private accountant is that it is nothing but a glorified accountant. While some small businesses may give their accountant the title of “staff accountant”, the reality is that a private accountant’s job essentially begins where the accountant’s job ends. While private accounting careers generally do not offer as lucrative a compensation package as public accounting, they offer a better work-life balance as public accounting requires very long work hours, especially from entry-level accountants. .
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