By James J. Caruso, CPA (inactive), CGMA

“Public or private?” All CPAs ask themselves this question at some point; often it's when seeking their first job or when they’re ready to move on after a few years in an entry-level position. While most of us have asked it, it is the wrong question to ask. It is a false choice that may bias your evaluation of the opportunities before you or divert you from considering the full range of available career options.  

There are endless questions to consider when evaluating a career path, and just about all of them are more relevant than “Is the job at a CPA firm or is it in private accounting?” The term “private accounting” is a common catch-all for “anything other than public accounting.” It encompasses so many different types of organizations, work environments, and roles that it is simply not meaningful to view them as a homogenous group when making a comparison to public accounting. Any CPA who is eager to “get out of public” should keep in mind that while many private accounting opportunities may compare favorably to those in public accounting, many others do not.  

Private accounting encompasses many different types of organization, each with its own unique considerations. In a family-owned or closely held business, you may find an environment characterized by a lack of appreciation for the value of accounting and finance, where nepotism abounds and prevents you from becoming part of the inner circle. In a publicly traded company, you generally won’t find these problems since compliance demands elevate the profile and sophistication of the accounting and financial reporting function. These are usually larger companies that offer interesting career paths. The downside, however, is that Securities and Exchange Commission (SEC) reporting deadlines could result in hours just as long as those you might be seeking to put behind you in leaving public accounting.  

Opportunities in publicly traded companies can be further categorized into divisional roles versus corporate roles. Depending upon the size of the division, there may be less upward or lateral mobility than in the corporate office, and you may not get exposure to functions generally managed at the corporate level, such as tax, treasury, or other shared services. Start-ups and venture-capital backed, early-stage companies can be exciting and dynamic places to work, allowing you to wear multiple hats, some outside finance and accounting. Companies in this category span a wide spectrum of size and stage – as well as viability. Private equity-backed businesses can combine the positive attributes of publicly-traded companies (i.e., the need for a strong finance function) without the rigid Sarbanes-Oxley or SEC reporting demands. However, these are generally middle market companies, where challenges may include high leverage, tight budgets, and limited prospects for promotion. Not-for-profit opportunities are often grouped under “private accounting,” despite being a unique form of organization with its own peculiar dynamics.

Public accounting firms also span a spectrum, differentiated not so much by type but by size, array of services, industry concentration, etc. Similar to private accounting environments, this variety should suppress the tendency to put them into a uniform group when making a career decision. There are also other types of consulting and professional services firms that are not focused on accounting and assurance.  

As you can see, deciding what type of organization is right for you is much more complex than whether or not it is public or private. And I haven’t even touched on the many other considerations. There are numerous organizational attributes to consider, including purpose, values, culture, strategy, stage, financial health, and viability. And you absolutely must consider the characteristics of the role itself: the nature of the work and its technical domain; potential for learning and development; whether it is a specialized or generalist role; remote work policy; work/life balance; among others. The central point is that most of the attributes that make a position desirable or undesirable are independent of whether the position is in public accounting or private accounting. This is true of the nature of the work itself: while assurance work may be unique to CPA firms, you can find tax, financial analysis, internal audit, or M&A-related opportunities in both public accounting and private accounting environments. You can even do traditional controller or CFO work in a public accounting firm as outsourced accounting and interim management services become more common.  

Whether the role is in public accounting or private accounting should never be the first or overarching question. You will be doing yourself a disservice. The public versus private canard is an oversimplification of your career path options. Instead, evaluate the attributes of each individual organization and opportunity on its own merits, relative to your own interests and goals.

James J. Caruso, CPA (inactive), CGMA, is CFO of Knipper Health in Somerset, N.J., and a member of the Pennsylvania CPA Journal Editorial Board. He can be reached at james.caruso@knipper.com.

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