what is the difference between going into the audit or tax field and which is better?

Question

Accounting student trying to decide where to go in the public accounting world, tax or audit.

Answer 1

In order to get your license you have to have experience in both fields don't you? I know you have to put in your audit hours to qualify for the license. Most small firms will have you doing both because there are not enough people to truly specialize. In larger firms you start out in Audit to be able to get your license and then you can specialize. Enough said about that. I did public accounting for 7 years, as a senior accountant for a small firm. I entered the field late in my career and was not able to pass all the parts of the exam. My strength is accounting. Which is where I am at now.

It depends each has its pluses and minuses. Auditing is a crunch assignment you have to look at the key components of a company. Assets, liabilities, marketing and operations. It will help you understand a business in total. Negatives are long hours and alot of field work.

Tax, pretty much crunch time the first 4-5 months of the year for individual tax and Corporate tax. Very long hours during Tax season. If you like tax it can be very dynamic in the sense of tax theory and interpretation. If you like that kind of thing.

BTW, what you learn in the accounting books is not what goes on in the real world except at the Advanced level maybe.

I would say try public accounting and see if you like it and then choose what you want to do. It's not something you have to pick now. Then there is the politics of getting ahead in public accounting. Getting to know the partners, and bringing in new clients. That's pretty far ahead in the company but, that is what you have to look forward to. Many in the field, get the license and go out on their own or work for a client.

Private or corporate or small business accounting is very different. You can set your pace, the work is determined by the type of business. This is something you can pick and choose as you audit a company and learn about them.

Actually, I think your choices are public accounting or private accounting. Which is better? Depends on what you want to do. If you like preparing tax returns, doing audits, and lots of different things to do. Then Public accounting is for you. If you like a steady job and reasonable hours then maybe private accounting is more your cup of tea.

Good luck