Public accounting versus private accounting Accounting is the art of bookkeeping that involves recording and analyzing financial statements, auditing and presentation of financial information for management. Therefore, public accounting refers to the practice of public accountants to provide financial audits, financial advisory services, designing financial systems, and tax preparation to individuals, partnerships, or even corporations…
Every organization has its functions that enhance its operations and some of the major functions are; sales and marketing which is responsible for creation of customers and presentation of products to them for purchase. Production provides inputs and processes output as goods or services. Administration is responsible for human resource management and overseeing that every resource is utilized well and other operations are run smoothly. Finance and accounting usually tackles the financial transactions within an organization. As a result, a firm can choose to either employ its permanent salaried accountant, in this case private accountant, or outsource its accounting function from registered accounting firm hence public accountant. Since public accountant is an external service provider while a private accountant is an internal service provider, they both face different working environment, challenges, and opportunities. From my understanding, a public accountant needs good people skills since such individuals deal with different clients. In their activities, they need to communicate with the clients efficiently and effectively to get to know their needs and satisfy them. Further, the individual also needs to have excellent selling skills (Tulsian 6). This is because such specialist works independently, hence to secure business; they have to convince their prospects of their effectiveness. Differences between public accounting and private accounting From the above analysis, I can argue that public accountants operate on a stressful environment as compared to private accountants. This is because public accountants have to fit themselves into any new environment each time since they work for different clients. As such, they have to adjust every time they are working for a new client since every client has a different code of contact and diverse needs and specifications. On the other hand, private accountants enjoy their working environment as they have established relations with their colleagues due to their common long-term working environment (Nikolai 779). In addition, a public accountant will likely spent longer hours at work than private accountant. The reason behind the length of time at work is deadlines issues. Clients give specifications on deadlines, which the accountant has to meet hence calling for extra dedication of time. To the contrary, private accountants have a routine time to work and can spread work evenly. In respect to economic cycle, I perceive public accounting less stable as compared to private accountants. At times, clients will not be in need of their services hence affecting the accountants adversely. On the other hand, private accountants earn a monthly payment regardless of the economic season. Public accounting gives the accountant a more exposure than private accounting does. This is because a public accountant handles a wide assortment of clients with a variety of different projects. This diversity enhances critical and analytical thinking skills. On the other hand, private accountants only work for their particular employer, hence limited to exposure since they are more likely to perform a routine job. Additionally, public accountants have a chance to grab opportunities than a private accountant because a public ...
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