Choosing a career path is a significant decision that requires careful consideration of the pros and cons associated with each option. For individuals interested in numbers, analysis, and financial management, a career in public accounting often emerges as an attractive choice. This article aims to explore the advantages and disadvantages of pursuing a career in public accounting, drawing upon factual information and statistics to provide a comprehensive overview.
Pros:
Lucrative Salaries and Opportunities for Advancement
- Public accounting offers the potential for lucrative salaries, especially as professionals progress in their careers.
- According to the U.S. Bureau of Labor Statistics, as of May 2020, the median annual wage for accountants and auditors was $73,560, with the top 10% earning more than $128,680.
- Public accounting firms often provide opportunities for advancement, with clear career paths leading to positions of greater responsibility and higher remuneration.
Diverse Clientele and Experiences
- One of the advantages of working in public accounting is the exposure to a wide range of clients across various industries.
- Diversity of clients fosters professional growth and enhances skills in adapting to different business models, regulations, and financial challenges.
- Allows accountants to develop a well-rounded skill set, including expertise in auditing, tax planning, financial analysis, and advisory services.
Skills Development and Networking
- Public accounting firms invest significantly in training their professionals, providing extensive resources to enhance technical knowledge and skill development.
- Allows accountants to stay updated with changing accounting standards, regulations, and industry practices.
- Working in public accounting provides ample networking opportunities, as professionals interact with clients, colleagues, and industry experts, potentially leading to new business opportunities or career advancements.
Cons:
Long and Demanding Work Hours
- One of the notable challenges in public accounting is the demanding work hours, particularly during peak periods such as tax season and financial reporting deadlines.
- Accountants often face tight deadlines, resulting in long hours, including evenings and weekends.
- This work-life imbalance can lead to increased stress levels and limited personal time.
High Levels of Pressure and Responsibility
- Public accountants shoulder significant responsibilities, especially when working on audits or providing financial advisory services.
- Accuracy and attention to detail are paramount, as errors can have severe consequences.
- The pressure to meet strict deadlines, uphold professional standards, and manage client expectations can be overwhelming for some individuals, leading to a high-stress work environment.
Limited Industry Specialization
- While the diversity of clients in public accounting can be viewed as an advantage, it can also present a drawback in terms of specialization.
- Accountants may find themselves working on projects in various industries, lacking the opportunity to focus on a particular sector of interest.
- The breadth of experience can be valuable, but for those desiring deep expertise in a specific industry, public accounting may not fulfill their career aspirations.
FAQs
Cons of Public Accounting
The downside to public accounting can be the long hours sometimes required to do the work, especially during tax season. They often must market their firm to new clients and may have to travel extensively.
What are the pros and cons of working as an accountant? ›
An accounting career offers a wide range of opportunities, good earning potential and professional growth opportunities, but it also requires long working hours, attention to detail, and limited creativity. It's important to weigh the pros and cons before making the decision to pursue an accounting career.
Is public accounting a good career? ›
Growth opportunities
Public accounting offers many opportunities for growth, allowing you to explore different areas across the accounting field as you build your career. The longer you stay within the space, the more leverage you'll gain when it comes to compensation and future career opportunities.
Why do you want a career in public accounting? ›
Working in public accounting provides ample networking opportunities, as professionals interact with clients, colleagues, and industry experts, potentially leading to new business opportunities or career advancements.
Is public accounting stressful? ›
Being a CPA is a great job but can also be a stressful one sometimes. Young CPAs, in particular, juggle multiple tasks at different stages of completion, often for multiple bosses.
What are the advantages and disadvantages of accounting? ›
Advantages and Disadvantages of Accounting Information
Comparison of Results: The financial statements facilitate the comparison of business results of a year with the other one easily. Decision Making: Ultimately, it becomes easier for the decision making authorities to make a decision or plan for future activities.
Why is no one going into accounting? ›
The study also finds that the writing skills are the same for those with and without the 150 hours. Many would agree that the most significant reason for the decline in accounting majors is the 150-hour requirement.
Is accounting a hard major? ›
Earning a degree in accounting can be challenging due to the complex nature of the subject matter, however it is not necessarily categorized as math-heavy. Students who are dedicated, diligent, and hard-working can successfully earn an accounting degree.
Are public accountants smart? ›
In a word, “Yes!” In fact, your accountant may well be the smartest person you know, and there are several reasons.
Are public accountants on demand? ›
The demand for accounting professionals has been steadily increasing. Factors contributing to this demand include complex tax regulations, evolving financial reporting standards, and the ever-expanding business landscape.
Public accounting is often described as fast-paced and demanding, which some accountants may find difficult. Inconsistent work schedule: Public accountants should expect long hours, last-minute pivots, and client travel to be the norm.
What are four reasons to study accounting? ›
Top 8 benefits of studying accounting
- Leadership and strategic impact. ...
- Varied responsibilities and skill development. ...
- Career progression and advancement. ...
- Financial management expertise. ...
- Job stability and market demand. ...
- Competitive compensation. ...
- Critical thinking and problem-solving. ...
- Global opportunities.
“Typically, the hours that public accounting professionals work is significant. Some people reach a point where they are looking for a better balance, so they move out of public accounting,” says Marc Basil, senior director of financial search with Chicago-based recruiting firm Brilliant.
What are the 5 disadvantages of public company? ›
Disadvantages of Public Limited Companies
- Less Operational Flexibility.
- Greater Transparency is Necessary.
- Ownership and Management Dilemmas.
- Higher Initial Financial Commitment.
- Stock Market Vulnerability.
1. Long hours and burnout. According to a survey by the American Institute of Certified Public Accountants (AICPA), burnout is the number-one reason accountants quit their jobs. Long hours, high-stress levels, and heavy workloads contribute to burnout, leading to physical and mental exhaustion.
What is the main disadvantage of a public company? ›
Disadvantages of Public Companies
Public companies are vulnerable to increased scrutiny from the government, regulatory agencies, and the public. The company must meet various mandatory reporting standards that are set by government entities such as the SEC and the IRS.
Why private accounting is better than public? ›
Public accountants typically have more travel opportunities but may work longer, less consistent hours. Depending on your perspective, public accounting might offer more adventure and less routine, while private accounting might offer a more manageable schedule and better work-life balance.
