[Scared-cpa]

I’ve always thought public = government organization.

In the accounting world, it seems to mean something different. Public = publicly traded company ONLY? Or does public mean publically traded and include government/NFP?

Can someone please clear this up for me because when I talk to people about public v. private who are not in the same field as I am, they say, “Why do you have to work for the government to get your experience hours?” Then I try to explain that public means publically traded and then they say, “Well why don’t you say publically traded instead of just public? Those are two different things.”

So can someone please set me straight on this issue. Please and thank you 🙂

[Missy]

Public accounting provides many services that virtually anybody can use from an individual for their personal taxes to a major corporation for audit and SEC filings vs private accounting where your paid time is providing services to one company.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Scared-cpa]

So public doesn't mean publically traded? It means more along the lines of public services (accounting firms who do work for other companies like accounting, auditing, and tax services)?

When the board says I need one year of experience in public accounting to get licensed, what companies does this include? Is there a list somewhere of large companies that are made for this? I'm assuming a recruiter would know what kind of companies to search for for me, but it's kind of confusing.

[Missy]

The firms are not themselves publicly traded but their clients may be (particularly big 4 clients). Public accounting can be a one person firm or large like the big 4. I've never heard of a state specifying a size of public accounting firm to meet the experience requirements. Usually the name of a public accounting firm will indicate that's exactly what it is.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[CPA788]

Generally when you talk amongst other accounting friends, public means an auditing firm, not limited to Big 4. If you have “public” experience, you've generally worked for some firm that audits public companies (not all are public companies) but it usually means you have worked on a pretty large variety of clients, in turn being a wide base of experience (that's up for discussion probably). I work for a publicly traded company, which people refer to as industry. It's a software company, so I am familiar with the software industry when it comes to the convos to be had.

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[Anonymous]

Public would mean working for the general public (i.e. clients) – you'd work for an accounting firm. Any accounting firm would work (just not quick books, turbo tax, or something that isn't really a firm).

It doesn't matter how big or small. Also, none of these firms will be publically traded (not allowed to be publically traded and wouldn't be appropriate for their business model). None of these are businesses you'll see on the stock market.

Just (some) of their clients will be on the stock market.

Public accounting would be in contrast to working for the company you do the accounting for – private accountants. I believe for the CPA you can still be a private accountant, but you must work in financial reporting. Don't quote me on that.

That being said. I'd recommend working as a public accountant (as you seek to become a certified public accountant) as it'd be most fitting.

There should be 1000s of firms across the country to work for. Everything from a 1 man shop to an international accounting firm. Here's a list of the vault “top 50”.

https://www.vault.com/company-rankings/accounting/vault-accounting-50/?pg=2

[Anonymous]

Public company = publicly traded (any company on the stock exchange)

Public accounting = external accountant for any variety of entities (most CPA firms)

Private company = closely-held ownership (partnerships, small businesses, not publicly traded)

Private accounting = internal accountant for any single entity (for example, working for Google, Apple, a local country club, or construction company, etc.)

[Ryan – Just Another Dollar]

I'm not exactly sure where I came to this understanding, but my interpretation of “Public” accounting is meaning ‘working in the interest of the general public (I.E. everyone)'. Auditors review financial reports and make sure that the companies we are all investing in the stock market are legitimate and accurate. Tax preparers act as the interface between people/companies and the IRS.

B - 88 (2/16)
A - 84 (4/16)
R - 73 (6/16), 82(7/16)
F - 67 (1/16), 84(4/16)

Ethics - 93

Roger course & Ninja MCQ - HiYa!

[Scared-cpa]

Okay, thank you guys! It seems a few of us have a little bit of variance on the terms but the examples you all gave helped straighten out my confusion.

So, just to make sure I 100% understand, I want to work in private accounting (internal) to a company like Tempur-Sealy, JIF, or Valvoline. Specifically cost accounting or internal audit. However, to get my work experience requirements, I need to work for a public accounting firm first and then transfer into private once I become licensed, correct?

[Anonymous]

You would be considered a private accountant if you wanted to work for any one of those companies. A few of those might be publicly traded, but if you work for any company internally, you would be considered a private accountant, not a public accountant.

Many people prefer to start working as public accountants (at CPA firms like the Big 4 and other regional public accounting firms) because the type of experience they receive working on several different clients and to refine their skills in a more demanding and deadline oriented environment. Then after a few years of working in public, they transfer to a private accounting position where they focus on the accounting for a single entity, their employer, not the public.

You can absolutely obtain an entry level staff accounting position at any one of those companies without public accounting experience, but many people start out in public accounting and then transfer to a private accounting position (also referred to as industry) where they are given titles like Senior or Manager depending on their level of experience.

[CPA788]

To get your license you only need to work under a licensed CPA. If you want the attest accreditation on your license, which is basically for people who want to become a partner in an accounting firm that signs off on audits, you need that specific experience of working for an auditing firm. If you just want your license without that specific disignation (a majority of people here I would guess?), all you have to do is work some accounting position under a CPA doing general ledger/financial reporting things. Your state board will lay all of that out.

*someone correct me if I'm mistaken

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[lou]

To answer your base question about requirement hours, in most states (please correct me if I'm wrong please) you need to work under a licensed CPA who can then sign off on your hours based on the work you have done.

Since you are already working towards being a CPA, it is strongly advised you go into “public” for 2 years and then go work in “private” or more commonly known as “industry”.

If you want to be a CPA, do what CPAs do, service the public.

Without knowing your specific situation, details, etc. it seems you want to be a “CPA” but won't have the experience a CPA who's worked in public for a few years will have.

[Scared-cpa]

Okay, I just checked on my state board's website and it says under a CPA for public, industry, or government. For some reason I thought I had to work for a public accounting firm to get licensed. The recruiter I talked to mentioned that companies find it very appealing if you have worked in public first. I guess better experience, I don't know? I have no desire to work in public but if it would increase my chance of moving up the ladder faster or higher pay then I would do it.

[Missy]

It varies from state to state.In MA you have to work in the attest functions of public accounting to get a license, or you can get a non reporting license with a master's degree. In other states you can work in private accounting as long as your boss is a licensed CPA who signs your work experience form.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Scared-cpa]

@lou, Yeah, so essentially I want to only work in private but still get my license because it seems like the thing to do haha. Although I've heard having your license helps even if you are working internally. So I don't know. I just do what I'm told I should do!

[CPA788]

Real life – I've faced limitations at my company because I didn't work in public. Companies like the experience you get from working on audits and seeing so many different accounting situations and how other companies do their financials. Much is to be said about really what people learn in audit (some don't learn anything and just turn into robots and do what their senior tells them to do, some legit figure it out and learn a lot from their time there – topic for another thread), but you gotta do what you think is right for you. I was frustrated that I didn't have that experience at first but the older I get the more I know my path was meant for me so it's all good.

BEC - 74, 77
FAR - 72, 71 (retake 7/29)
REG - 69
AUD - Q4 '16

CA Candidate

[Author]

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