Corporate accountants are professionals that handle accounting functions for private companies.
The accounting profession is regarded as one of the highest paying jobs in the industry. Businesses of all industries and sizes need accountants to monitor, manage, and assess all financials that are coming in and out of their company. Accountants provide financial advice, assist in devising effective business strategies, help businesses to reduce their costs, and mitigate risks.
Generally, professional accounting refers to financial accounting roles related to collection, recording, accuracy, analysis and reporting of a business’s financials. As for the accounting profession itself, accountants have the option of pursuing a career in corporate accounting or public accounting.
What is corporate accounting?
Corporate accountants are professionals that handle accounting functions for private companies. These people focus on business accounting and they help stakeholders to make smarter financial decisions for the company.
Part of their responsibilities is to ensure that all financial records are accurate. Corporate accountants also make sure that the organization is complying with the rules and regulations of the law. They are also in charge of the consolidation and preparation of financial ledgers and statements. Lastly, they handle the budget preparation for each of the company’s departments for the entire year.
What is public accounting?
Public accountants, on the other hand, are professionals that serve clients in different businesses, nonprofit organizations, government agencies, and individuals. Public accounting usually refers to a firm with professional accountants that works for several clients.
In most cases, these professionals review and prepare financial documents that companies or individuals need to present to the public. Public accountants’ primary role generally is to verify financial statements, reports, and disclosures.
Corporate accounting vs public accounting
Both corporate and public accounting are two branches of accounting. While these two deal with accounting functions, they have their own differences. However, some private companies require their accountants to have a Certified Public Accountant (CPA) credential before hiring them.
The main distinction between these two professions is that public accountants are considered to be external accountants – while corporate accountants are internal accountants. Public accounting is when the financial and accounting services being performed is for regulatory purposes, mainly for transparency. Public accountants are not employed internally by any of their clients, also, they are not a part of their clients’ organization.
Further, corporate accounting refers to the financial and accounting work being done solely for the benefit of a specific company. Corporate accountants do not have clients, they are employed by one specific company and perform accounting functions exclusively for them.
