For aspiring accountants, including those pursuing an advanced degree in accounting, one of your most important career considerations is whether to work in the public or private sector.
Private accounting, also known as corporate accounting, involves working as an accountant exclusively for a single company to handle its financial matters. On the other hand, public accountants are employed by firms that offer accounting services to various companies, functioning more as contractors than direct employees of the clients.
Both career paths offer distinct advantages, and the decision ultimately relies on selecting the type of accounting that aligns with your interests, skills and long-term career objectives. If you are leaning toward corporate accounting, understanding its focus, responsibilities and how it differs from public accounting can help you select the career path that best suits your future goals.
What Is Corporate Accounting Concerned With?
Corporate accounting focuses on maintaining accurate financial records within an organization and ensuring compliance with regulations, policies and established procedures. Its primary purpose is to assess a company’s financial and operational health. Investors, in particular, need to understand their affiliated companies’ financial stability.
Corporate accounting is crucial in conveying information about the firm’s assets, liabilities, financial obligations and growth potential to investors. Additionally, it supports the company and management in making sound, informed financial decisions. Professionals responsible for these tasks are commonly referred to as management accountants.
What Does Corporate Accounting Entail?
Corporate or private sector accountants typically work for non-accounting companies instead of accounting firms. They may operate in various settings, including small local offices, national corporations, international enterprises or even nonprofit organizations. Generally, corporate accountants function as part of a team or department under the supervision of the chief financial officer (CFO), although smaller firms may employ a solitary corporate accountant.
Unlike their counterparts in public accounting, private accountants focus on serving a single company, allowing them to develop extensive expertise in a specific industry or niche. They often remain within that particular industry, acquiring specialized knowledge over time. In fact, some corporate accountants progress through their careers and eventually reach the position of CFO.
The industry encompasses two main functions, each with specific types of responsibilities:
- Accounting: This involves handling daily operations such as monitoring revenue and expenses, maintaining accurate financial records, managing payments and overseeing payroll activities.
- Finance: Here, the emphasis is on assessing expenses and revenue to ensure efficient capital utilization. Finance professionals provide guidance on project costs and make strategic capital investments to support business objectives.
How Does Corporate Accounting Differ From Public Accounting?
The distinctions between corporate and public accounting lie in the focus of their services, the nature of their clients and the scope of their responsibilities, each catering to different financial needs and objectives.
- Scope: Corporate accounting has a narrower scope, primarily addressing the financial needs and requirements of the employing company. Public accounting, in contrast, involves a broader range of services such as auditing, tax preparation, financial consulting and advisory services offered to external clients.
- Reporting: Corporate accountants are responsible for internal financial reporting within their organization. Their reports help management make informed decisions, comply with regulatory requirements and assess the company’s financial health. Public accountants, however, focus on external financial reporting to ensure compliance with relevant accounting standards and regulations for the benefit of stakeholders, investors and regulatory bodies.
- Career progression: Corporate accounting offers a clear pathway for career growth within the organization. Because of their depth of industry knowledge, corporate accountants may advance to higher positions such as senior accountants, accounting managers or CFOs. Public accountants, with their expertise across industries, often progress through different levels within the accounting firm, such as staff accountants, senior associates, managers and partners.
- Work life: Corporate accountants work within a specific company’s internal environment, closely collaborating with colleagues from various departments. Public accountants, in contrast, experience a more dynamic work environment as they interact with clients from diverse industries and often work on-site at client locations. Corporate accountants work long hours around the end of each month to close out the books, while public accountants work longer hours during the tax season.
Prepare to Pursue a Career in Corporate Accounting
If you choose to pursue corporate accounting, the Lamar University online Master of Business Administration (MBA) in Accounting program includes coursework on topics such as financial reporting and advanced accounting, as well as in-depth knowledge of accounting regulations and practices that will prepare you to hit the ground running in your position following graduation. Courses of particular interest to your career choice include Cases in Corporate Finance, Internal and External Financial Reporting, Managerial Accounting and Managerial Economics.
With experience and accomplishments, this degree can prepare and qualify you for positions including budget analyst, international accountant, financial analyst and roles in C-suite management.
Learn more about Lamar University’s online MBA in Accounting program.
