Public accounting offers faster skill development, CPA exam support, and premium exit opportunities — but demands 51-60+ hour weeks during busy season (80% of professionals surveyed). Private (industry) accounting offers better work-life balance and competitive mid-career compensation. BLS data shows accountants at CPA firms earn a median of $80,510 vs $87,980 in finance/insurance and $86,010 at management companies — suggesting industry can actually pay more. The most common strategy: start in public for 2-5 years, then exit to industry.
- The core differences between public and private accounting
- What real salary data shows for each path
- The honest truth about work-life balance and busy season
- Career progression paths and advancement speed
- Exit opportunities — where public accountants go next
- A decision framework to choose the right path for you
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What is the difference between public and private accounting?
Public accountants work at CPA firms (Big 4, mid-market, regional) serving external clients — performing audits, tax preparation, and consulting. Private (industry) accountants work within a single company's finance team, handling internal reporting, budgeting, and financial operations.
Does public or private accounting pay more?
It depends on career stage. BLS data shows accountants at CPA firms earn a median of $80,510, while those in finance/insurance earn $87,980 — industry actually pays more on average. However, public accounting partners at larger firms earn a median of $210,000 (Accounting Today 2025 Survey), making the top of public accounting extremely lucrative.
Is public accounting worth the hours?
For 2-5 years, usually yes. Public accounting builds skills faster through diverse client exposure, and firms typically fund CPA exam prep. A 2025 survey found 80% of public accountants work 51+ hours per week during busy season — it's demanding, but most leverage the experience into higher-paying industry roles after.
When should you leave public accounting?
The most common exit point is after 2-5 years (senior level). You've built diverse skills, earned CPA with firm support, and can transition to industry at the manager or senior level. Over half of accountants in a 2025 survey felt confident they could get a meaningful raise at their current firm, but a third said switching employers was likely needed.
Public vs private accounting is the single biggest career fork for accounting professionals. It affects your salary, your hours, your skill development, your stress levels, and your long-term career ceiling. Most accountants face this decision during college or early in their careers — and the choice has compounding consequences.
The good news: it's not permanent. Accountants switch between public and private throughout their careers. But understanding the tradeoffs upfront helps you make a more intentional first move.
Public vs Private Accounting: What's the Difference?
Public accounting = working at an accounting firm that serves outside clients. The BLS notes that 23% of all accountants and auditors work in "accounting, tax preparation, bookkeeping, and payroll services" — this is the public accounting sector.
Private accounting (also called "industry") = working inside a company's finance department. The remaining accountants work across industries: 8% in finance and insurance, 8% in government, 6% in management of companies, and 5% are self-employed, according to BLS data.
For a comprehensive overview of all accounting career paths, see How to Become an Accountant.
Public accountants serve external clients at CPA firms; private accountants work within a single company's finance team. About 23% of all accountants work in public accounting; the rest work across various industries.
What the Salary Data Actually Shows
Salary is often the first question — but the available data tells a more nuanced story than most "public vs private" articles suggest.
BLS Industry Data: Where Accountants Earn Most
The BLS reports median wages for accountants by industry type, which gives us the closest official comparison:
This data challenges a common assumption: accountants at CPA firms (public accounting) actually earn a lower median than those in finance/insurance and management companies. The BLS median for public accounting firms is $80,510 compared to $87,980 in finance and insurance — a $7,470 gap favoring industry.
BLS medians capture all experience levels in each industry. Public accounting firms employ a high proportion of entry-level staff (who cycle through in 2-5 years), which pulls the median down. The top of public accounting — partners — earn far above these medians. Industry medians include fewer entry-level staff, skewing higher. Neither number tells the full story.
Public Accounting Salaries: Accounting Today 2025 Survey
The Accounting Today 2025 Salary Survey (768 respondents, mostly CPA firms) provides the most detailed breakdown of public accounting compensation:
Robert Half 2026 Salary Data (All Accounting Roles)
Robert Half's 2026 Salary Guide provides salary ranges for accounting positions generally (not split by public vs private):
Big 4 Starting Salaries
For those considering the largest public accounting firms, starting salaries vary by service line:
Robert Half reports a +3.7% salary increase for public accounting roles in tax, audit and assurance for 2026 — the highest growth rate across all finance and accounting categories. For a complete breakdown across all accounting specializations and career levels, see our Accountant Salary Guide.
BLS data shows industry accountants earn higher medians than those at CPA firms ($87,980 vs $80,510), but this is skewed by the high proportion of entry-level staff in public accounting. Partners at larger firms earn a median of $210,000, and the top of both paths reaches well into six figures.
Work-Life Balance: The Honest Truth
This is where the paths diverge most dramatically — and where we have real survey data.
Busy Season: The Numbers
A 2025 survey by Distinct Recruitment (110 tax and audit professionals across North America) paints a clear picture of busy season:
By seniority, the burden is uneven:
- Associates: Only 22% found busy season stressful — firms appear to be protecting early-career staff
- Seniors: 75% found it stressful, with 47% rating work-life balance as "Poor" — mid-career accountants bear the heaviest load
- Managers and Partners: 38% and 21% respectively work 70+ hours per week
The Industry Contrast
Private accounting has busy periods too — month-end close, quarter-end reporting, year-end audit preparation. But these crunch periods are shorter, more predictable, and rarely exceed 50 hours per week for more than a few days at a time. There's no equivalent to the 3-4 month sustained grind of public accounting busy season.
Survey data confirms what public accountants know: 80% work 51+ hours during busy season, and 74% rate work-life balance as fair or poor. Seniors bear the heaviest burden. Industry offers more predictable schedules — this is the #1 reason accountants leave public for private.
Career Progression and Growth
Both paths offer clear advancement — but the timelines, structures, and ceilings differ.
Public Accounting Track
According to Accounting Today data and industry norms:
- Staff / Associate (Years 0-2): Execute procedures, prepare workpapers, learn methodology
- Senior (Years 2-5): Lead engagements, review staff work, manage daily client contact
- Manager (Years 5-8): Own client relationships, manage teams, oversee deliverable quality. Median salary: $100,000-$130,000 depending on firm size
- Senior Manager / Director (Years 8-12): Business development, firm strategy, complex engagements
- Partner (Years 12-15+): Firm ownership, major client relationships. Median salary: $155,000-$210,000 depending on firm size, with 95th percentile reaching $350,000-$1,000,000+
The Accounting Today survey found it takes more than 5 years to make partner at most firms — and more than 16 years at 14% of firms.
Private Accounting Track
Based on Robert Half salary data for general accounting roles:
- Staff Accountant (Years 0-3): Journal entries, reconciliations, basic reporting. Mid salary: $73,750
- Senior Accountant (Years 3-6): Month-end close, complex analysis. Mid salary: $94,750
- Accounting Manager (Years 6-10): Team leadership, reporting oversight. Mid salary: $113,000
- Director of Accounting (Years 10-15): Department management. Mid salary: $165,000
- Controller (Years 12-18): Full financial operations. Mid salary: $185,000
- CFO (Years 15+): C-suite strategic leadership. Mid salary: $269,750
Speed of Development
Public accounting develops technical skills faster — this is widely acknowledged. In 3 years, you'll work with dozens of clients across multiple industries, navigate complex situations, and develop client management skills. An industry accountant in the same timeframe works on one company's books.
But speed isn't everything. Industry accountants develop deeper knowledge of a specific business and often build broader business skills — collaboration with operations, marketing, and leadership teams — that public accountants don't typically get until much later.
Public accounting builds technical breadth through diverse client exposure. Industry builds deeper business knowledge within one company. Both paths lead to executive roles — partners earn $155K-$210K+ median, while controllers and CFOs earn $185K-$270K median per Robert Half data.
Exit Opportunities from Public Accounting
Public accounting's strongest selling point may be what comes after. The Accounting Today 2025 survey found that a third of accountants said they "probably" or "definitely" had to switch employers to get a meaningful salary increase — and public-to-private transitions are the most common move.
Where public accountants go:
- Corporate finance departments — The most common exit. Senior-level public accountants move into manager and senior manager roles in industry
- Tech companies — Growing demand for accounting talent, often with equity compensation
- Financial services — Fund accounting, compliance, internal audit
- Consulting and advisory — Forensic accounting, valuation, transaction advisory
- Government and nonprofit — More stability, structured benefits, public service
- Own practice — Starting a firm or going freelance (see our Freelance Accountant Guide)
The reason industry values public accounting experience: firms train accountants intensively. A senior with Big 4 or mid-market experience has seen more complex situations in 3 years than many industry accountants see in a decade.
Mid-market firms (BDO, Grant Thornton, RSM) provide similar experience and exit opportunities with often better work-life balance during your public accounting years. See Big 4 Accounting Alternatives.
Public accounting's exit opportunities are its strongest asset. The standard play — 2-5 years in public, then transition to industry — remains the most common high-earning career strategy for accountants.
What Each Path Actually Looks Like
A Day in Public Accounting (Senior Auditor)
- 8:00 AM — Arrive at client site (or log in remotely)
- 8:30 AM — Team huddle: discuss open items, assign sections
- 9:00 AM-12:00 PM — Execute audit procedures: test controls, review documentation, tie out balances
- 12:00 PM — Lunch (often at desk during busy season)
- 1:00 PM-4:00 PM — Client meetings, follow up on open requests, review staff workpapers
- 4:00 PM-5:30 PM — Draft findings, update status trackers, communicate with manager
- 6:00 PM-8:00 PM — Additional work during busy season (review notes, prepare for tomorrow)
Variety: High — different clients, different industries, different problems every few weeks.
A Day in Private Accounting (Senior Accountant)
- 8:30 AM — Log in (many industry roles offer remote/hybrid)
- 9:00 AM — Review overnight transactions, follow up on open items
- 9:30 AM-12:00 PM — Month-end close activities: journal entries, reconciliations, variance analysis
- 12:00 PM — Lunch (usually a real break)
- 1:00 PM-3:00 PM — Cross-functional meetings: collaborate with ops, sales, or HR on financial questions
- 3:00 PM-5:00 PM — Reporting, analysis, process improvement projects
- 5:00 PM — Sign off (genuinely, most days)
Variety: Moderate — same company, but diverse internal projects and cross-functional work.
Public accounting offers more variety and faster learning but longer, less predictable hours. Industry offers more predictable days, cross-functional collaboration, and better work-life boundaries.
Skills You'll Develop
Public accounting builds technical breadth and client skills. Private accounting builds business depth and cross-functional collaboration. The ideal career often combines both — public experience followed by industry depth.
How to Decide
- You want fast skill development across diverse clients and industries
- You're pursuing CPA and want employer-funded exam support
- You thrive under pressure and can handle sustained 51-60+ hour weeks for 3-4 months
- You want strong exit opportunities into industry later
- You're early in your career and want to maximize learning speed
- You're interested in audit, tax, or consulting services
- Work-life balance is a top priority right now
- You prefer deep knowledge of one business over broad exposure
- You enjoy cross-functional collaboration beyond just accounting teams
- You want predictable schedules without months-long busy seasons
- You're interested in FP&A, budgeting, or operational finance
- You already have public accounting experience and are ready for the next chapter
The Hybrid Strategy
The most common approach: start in public accounting for 2-5 years, then transition to industry. This gives you:
- Fast, diverse skill development under intense conditions
- CPA certification with employer support (most firms fund exam prep)
- A strong resume that's valued by industry employers
- Better work-life balance for the rest of your career
- Access to controller and CFO roles that value public accounting backgrounds
This isn't the only valid path, but it's the most traveled for good reason.
Neither path is universally better — it depends on your priorities. The "start public, exit to industry" strategy is the most common approach, but going directly to industry is perfectly valid if work-life balance is the priority from day one.
Key Takeaways
- 1Public accounting = CPA firms serving external clients; private = working inside a company's finance team
- 2BLS data shows CPA firm accountants earn a median of $80,510 vs $87,980 in finance/insurance — industry pays competitive (or higher) salaries on average
- 3Public accounting partners at larger firms earn a median of $210,000 (Accounting Today 2025 Survey), with 95th percentile reaching $932,000+
- 4A 2025 survey found 80% of public accountants work 51+ hours during busy season, with 74% rating work-life balance as fair or poor
- 5Seniors bear the heaviest busy season burden: 75% find it stressful, 47% rate balance as 'Poor'
- 6Public accounting builds skills faster; industry builds deeper business knowledge — combining both is the most common high-earning strategy
- 7This isn't a permanent decision — accountants switch between public and private throughout their careers
Frequently Asked Questions
Is public or private accounting harder?
Public accounting is more demanding in terms of hours — 80% of public accountants surveyed work 51+ hours per week during busy season. The work itself isn't necessarily harder intellectually; private accounting involves complex ERP systems, cross-functional challenges, and strategic analysis that are equally challenging in different ways.
Can you go from private to public accounting?
Yes, though it's less common than public-to-private. Firms hire experienced industry accountants, especially those with specialized knowledge. The BLS notes that 'it is less common for management accountants or internal auditors to move into public accounting' but it does happen.
Do you need a CPA for private accounting?
CPA is valuable but less critical in private accounting than public. Many industry roles accept CMA, MBA, or equivalent experience. However, controller and CFO roles increasingly prefer or require CPA. The credential always helps — it's less mandatory than in public firms.
How long should you stay in public accounting?
The typical sweet spot is 2-5 years. Under 2 years and you haven't fully developed the skills that make public experience valuable. The Accounting Today 2025 survey found it takes more than 5 years to make partner at most firms — if you're not committed to the partner track, the 2-5 year exit window offers the best balance of experience and opportunity.
Is Big 4 experience necessary?
No. Mid-market firms (BDO, Grant Thornton, RSM) and regional firms offer similar skill development and exit opportunities. Big 4 carries brand recognition, but hiring managers in industry value quality public accounting experience regardless of firm size. See our guide: Big 4 Accounting Alternatives.
What is the best public accounting firm for work-life balance?
Mid-market and regional firms generally offer better work-life balance than Big 4 while still providing strong experience. The 2025 Distinct Recruitment survey found that Associates (22% stressed) fare much better than Seniors (75% stressed), suggesting early-career staff are somewhat protected regardless of firm.
Does leaving public accounting hurt your career?
No — it's the expected career move. The majority of public accountants transition to industry. The BLS explicitly describes this career flow: 'Public accountants often move into management accounting or internal auditing.' Leaving at the right time is a natural and positive career transition.
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Sources & References
- Occupational Outlook Handbook: Accountants and Auditors — U.S. Bureau of Labor Statistics (2025)
- The 2025 Accounting Today Salary Survey — Accounting Today / Arizent Research (2025)
- 2026 Finance and Accounting Salary Guide — Robert Half (2026)
- Busy Season 2025: A Snapshot of Workload, Stress & Support in Public Accounting — Distinct Recruitment (2025)