What does a public accountant do?

What is a Public Accountant?

Public accountants are providers of accounting services, such as auditing, tax preparation, consulting, and financial reporting, to a wide range of clients including individuals, small businesses, corporations, non-profits, and government agencies. Their expertise is in ensuring financial accuracy, compliance with regulations, and strategic financial planning. In short, their work is vital in helping clients avoid financial pitfalls and manage their financial affairs effectively and legally. They differ from private accountants, who work with a single organization and focus on internal accounting needs.

What does a Public Accountant do?

Duties and Responsibilities
Public accountants serve as trusted advisors. Their primary responsibilities include:

• Financial Reporting – Public accountants prepare and analyze financial statements, including balance sheets, income statements, and cash flow statements. This helps clients understand their financial position and make informed decisions.
• Auditing – Public accountants verify the accuracy of financial statements and ensure they comply with applicable laws and regulations. They may conduct audits for companies, government agencies, or non-profits to provide an independent assessment of financial health, which is essential for investors, creditors, and other stakeholders.
• Tax Preparation and Planning – They prepare and file tax returns for individuals and businesses, ensuring compliance with tax laws. They also offer tax planning services to help clients minimize their tax liabilities and optimize their financial situations.
• Consulting – They provide expert advice on financial management, business strategies, mergers and acquisitions, risk management, and other financial matters. Public accountants often help businesses improve efficiency, reduce costs, and enhance profitability.
• Compliance – Public accountants ensure that clients follow financial regulations and standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), depending on the jurisdiction.
• Advisory Services – They offer guidance on a variety of financial and operational issues, including budgeting, forecasting, internal controls, and financial planning.

Types of Public Accountants
Now that we have a sense of the scope of the public accountant’s work, let’s look at some different types of these accountants, each specializing in specific areas of accounting and financial services:

• Auditors – These public accountants specialize in audit and assurance, providing independent assessments of financial statements. They ensure that financial reports are accurate, complete, and compliant with accounting standards and regulations. Specializations within auditing include internal auditing, external auditing, and IT auditing.
• Forensic Accountants – These accountants specialize in investigating financial fraud and discrepancies. They use accounting, auditing, and investigative skills to uncover financial crimes such as embezzlement, fraud, or money laundering. Forensic accountants often work with law enforcement agencies, legal teams, or as expert witnesses in court cases.
• Management Accountants – While typically considered a part of private accounting, some public accountants also offer management accounting services to clients. They help businesses with budgeting, cost management, performance evaluation, and strategic planning. They focus on providing financial information that helps management make informed decisions.
• Non-Profit Accountants – Specializing in nonprofit accounting involves working with charitable organizations, foundations, and other non-profits to manage their finances. This includes fund accounting, grant management, and ensuring compliance with specific regulatory requirements for non-profits.
• Government Accountants – These accountants focus on accounting practices and financial reporting for government agencies. Public accountants in this sector work on budgeting, financial management, and compliance with governmental accounting standards.
• Consultants – Public accountants who specialize in consulting provide expert advice on a range of financial and business issues. This can include financial planning, mergers and acquisitions, risk management, and improving business processes. They help clients optimize their financial operations and achieve their business goals.
• Tax Accountants – These specialists focus on tax law, compliance, and planning. Tax accountants help individuals and businesses optimize their tax strategies, prepare tax returns, and navigate complex tax regulations. They may also represent clients in disputes with tax authorities.
• International Accountants – Public accountants specializing in international accounting focus on the financial practices and regulations of different countries. They assist multinational companies with cross-border transactions, compliance with international accounting standards, such as International Financial Reporting Services (IFRS), and global tax planning.
• Certified Public Accountants (CPAs) – While CPA is an accounting certification rather than a type, CPAs are often considered a distinct category within public accounting due to their advanced qualifications. CPAs can perform all the functions mentioned above, and their certification allows them to represent clients in front of the IRS and provide more specialized services.

What is the workplace of a Public Accountant like?

Public accountants can work for a variety of entities, depending on their specialization, experience, and career goals. These are among their most common employers:

• Public Accounting Firms – The most frequent employers of public accountants are public accounting firms, which range from large international firms to small local practices. The ‘Big Four’ accounting firms – Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG – are the largest and most well-known firms in the industry, offering a wide range of services including auditing, tax preparation, consulting, and advisory services. Smaller regional or boutique firms may specialize in specific industries or services.
• Self-Employment/Independent Practice – Many public accountants choose to start their own accounting practices, working as independent consultants or sole practitioners and offering their services directly to clients.
• Corporations – While most public accountants work for accounting firms, some may be employed directly by corporations, particularly in roles that require specialized accounting expertise, such as tax planning, internal auditing, or financial reporting. These accountants may provide services to the corporation's various stakeholders, including shareholders, regulatory bodies, and management.
• Government Agencies – Public accountants may work for federal, state, or local government agencies. In these roles, they might be involved in auditing government programs, managing public funds, preparing financial reports, or ensuring compliance with governmental accounting standards. The Internal Revenue Service (IRS) and the Government Accountability Office (GAO) are examples of US federal agencies that employ public accountants.
• Non-Profit Organizations – Non-profit organizations often employ public accountants to handle their financial reporting, tax filings, and audits. Accountants in this sector need to understand the unique financial and regulatory requirements of non-profits, such as fund accounting and donor reporting.
• Educational Institutions – Some public accountants work in academia, either as educators or researchers. They may teach accounting, auditing, or taxation at universities or colleges, or conduct research on accounting practices and policies.
• Financial Institutions – Banks, investment firms, and insurance companies may employ public accountants to help with regulatory compliance, risk management, and financial reporting. These institutions require accountants with expertise in financial regulations and industry-specific accounting practices.
• Consulting Firms – Consulting firms that offer financial and business advisory services often employ public accountants to provide specialized advice to clients. These accountants may work on projects involving mergers and acquisitions, restructuring, financial planning, or other strategic initiatives.

The workplace of a public accountant can vary significantly depending on their role, employer, and specialization. However, some common elements characterize the work environment:

• Office Setting – Public accountants typically work in an office environment. In a public accounting firm, they might have their own office or work in a shared space with other accountants. Larger firms often have modern, well-equipped offices with amenities such as conference rooms, meeting spaces, and collaborative work areas.
• Client Interaction – A significant part of a public accountant's job involves interacting with clients. This can take place in the accountant's office, at the client's location, or virtually through video calls and emails. Public accountants often travel to client sites for audits, consultations, or meetings, especially if they work for large firms or have clients in different locations.
• Flexible Work Arrangements – Many public accountants have flexible work arrangements, including the ability to work remotely, especially for tasks like preparing financial statements, tax returns, or conducting research. The advent of cloud-based accounting software and secure digital communication has made remote work more feasible in this profession.
• Team Collaboration – Public accountants often work as part of a team, especially in larger firms or on complex projects. Collaboration with other accountants, auditors, tax professionals, and consultants is common.
• High Workload During Busy Seasons – The workload of a public accountant can vary throughout the year, with certain times being particularly busy. For example, tax season (typically January through April) is an intense period for tax accountants, requiring long hours and a high level of productivity. Similarly, audit work might peak at the end of a company’s fiscal year.
• Technology-Driven Environment – Public accountants rely heavily on technology, including accounting software, data analysis tools, and communication platforms. The use of technology is integral to maintaining accuracy, efficiency, and security in their work. Keeping up with the latest accounting software and digital tools is often necessary.
• Regulatory and Compliance Focus – The workplace of a public accountant is often structured around maintaining compliance with regulations and standards. This includes adherence to Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and tax laws. This regulatory focus can shape the culture and day-to-day operations of an accounting practice.
• Professional Environment – The culture in public accounting firms is typically professional and detail-oriented, with an emphasis on accuracy, ethics, and confidentiality. Dress codes may vary from business formal in more traditional firms to business casual in more modern or smaller practices.