In this video we cover the differences between public accounting and industry accounting, particularly focusing on career paths, salaries, and when you might want to consider making a switch. If you’re a CPA working in public accounting and considering a change, thinking about exiting the Big Four, or if you’re fresh out of college deciding between public accounting and industry, this guide is for you.
And if you’ve already made the pivot, feel free to share your story!
Watch now!
Public Accounting vs Industry Accounting: The Basics
In accounting, there are two major career paths: public accounting and industry accounting.
- Public Accounting: You work for a firm that provides services like audit, tax, and advisory to multiple clients. It’s a fast-paced environment, often described as a “finishing school for accountants” or even a “rock tumbler”—taking in lots of new graduates and churning out polished professionals.
- Industry Accounting: Here, you work internally for a single company, handling month-end closes, payables, and receivables. It’s characterized by stability, less grind, and less chaos, but it also offers potentially slower career progression.
Work-Life Balance: Brutal vs Predictable
Let’s be real—public accounting can be brutal on your work-life balance. During busy season, working 60 to 70 hours a week is not uncommon. However, the upside is that you learn a lot very quickly. Industry accounting, on the other hand, tends to offer a better work-life balance. The typical week is closer to 40 hours, and it’s rare to receive work calls after signing off at 5 p.m.
As one Redditor humorously put it, “Public accounting equals death, industry accounting equals life.” If you value a predictable work schedule, industry might be the better option for you.
Salary Progression: Where’s the Money?
A big question for accountants is, “Where can I make the most money?” The answer can depend on your career strategy.
- Public Accounting: Starting in public accounting can get you to higher salaries faster. After about five years, you could reach a managerial position, earning between $120,000 and $150,000 annually. As you continue, the partner level can see salaries of $200,000+ and much higher within 10-15 years.
- Industry Accounting: In industry, the climb is a bit slower, but it’s steady. After 7-10 years, you might progress to assistant controller or controller positions, earning between $120,000 and $200,000 annually. From there, your career might progress into a CFO role, where compensation often exceeds $500,000. However, reaching those roles can take more time compared to public accounting, especially since you may need to wait for positions to open up in your current company.
Starting in public accounting can shave off 3 to 5 years on the path to high-paying roles compared to starting directly in industry. As Bill Hanna, a financial controller, put it, those first two to three years in public accounting feel like “dog years”—in just a couple of years, you gain as much experience as someone in industry might get in five or six years.
What Makes Public Accounting an Effective Launchpad?
Public accounting is an excellent launchpad for higher salaries because of the exposure it offers:
- You get to work across various industries.
- You deal with different business models and complex financial challenges early in your career.
This diverse experience makes you highly desirable when moving into industry, particularly for leadership roles. Additionally, if you are looking to become a CPA, public accounting is advantageous because you often get the supervision hours needed to meet licensing requirements automatically.
Switching to Industry: Skills You’ll Need
If you’re considering making the pivot to industry accounting, you may need to brush up on a different set of skills. One Reddit user who made the switch mentioned that it’s not particularly hard to learn, but it does require adapting to different processes.
At WizDefy, we offer CPE credit courses that can help you learn the necessary skills for industry accounting, such as budgeting, modeling, and forecasting—all while earning NASBA CPE credits. If you’re interested, check out the link below for more details.
Public vs Industry: Which Is Better?
So, which is better—public or industry accounting? It all comes down to what you’re looking for:
- Public Accounting: If you want rapid progression, high salaries, and the opportunity to become a partner or a high-level financial manager, public accounting is likely the better choice. However, it comes with stress, long hours, and the need for consistent output.
- Industry Accounting: If you value stability, a good work-life balance, and predictability, industry accounting may be your ideal path. You can still reach significant roles, such as controller or CFO, but the climb may take a bit longer. For those who prioritize time away from work and prefer a less hectic pace, industry accounting is a great choice.
The Best of Both Worlds?
Ultimately, there’s no one-size-fits-all answer. Your career path depends on your ambitions and lifestyle preferences. Many CPAs find it beneficial to endure the public accounting grind for 5 to 7 years to fast-track their way into higher-level industry accounting roles, where they can enjoy a more balanced lifestyle.
If you’ve made the pivot from public accounting to industry, we’d love to hear your experiences—share them in the comments!
Wrapping Up
The choice between public accounting and industry accounting is highly personal, depending on what you value more—rapid career advancement or work-life balance. No matter which path you choose, the accounting profession offers varied and rewarding opportunities.
Thanks for reading, and good luck on whichever accounting journey you choose to embark on!
