Step 1: Understand and correctly describe the two concepts of free accounting and private accounting
Before determining the next step, the first thing you need to know is the correct definition of these two accounting positions.
Freelancers are accountants responsible for work and financial reporting, statistics and reporting of financial data to multiple clients when required to present and disclose financial transparency. In other words, free accounting is the person who verifies these documents, reports them and discloses them as a third party operating independently of that business or private entity.
The reverse private accountant is the accountant who is in charge of and handling the financial affairs of a single unit (possibly an enterprise or a private one) with which they are hired. Private accountants will typically collect and report these data to senior managers in the enterprise. The procedures employed by private accountants are also determined on the basis of internal standards or their own company's work regulations.
Step 2: Compare between 02 accounting jobs
In terms of working environment, both positions have peak times that make them extremely busy. It could be time to make a tax report for a freelance accountant or it is time to periodically report a company's financial statement to a private accountant. However, the working environment of the two positions is different. Due to the nature of service for a company, the private accountants will usually come to the office in accordance with the standard time of the business. This is equivalent to the work and schedule of an ordinary office worker. In contrast, with freelancers, they often work as an accountant or set up their own company specializing in the field. They will move to many places and work flexibly at any time, wherever they are when requested by the customer.
On a day-to-day basis, freelancers are often responsible for ensuring that the customer's financial data and statements are accurate before disclosure. Their primary duty is to test and analyze the customer data provided to ensure that there are no errors. Each freelance accountant will undertake their own specialized field of tax accounting, auditing, legal counsel or financial advisor. Private accountants will often work based on internal data to estimate cost, profit and financial performance of the company. The day-to-day operations of private accountancy will revolve around reporting to managers, including the collection of payroll and the adjustment of debt and equity accounts.
The requirement for a degree, bachelor's degree, or equivalent, such as a CPA in the field of accounting, is a prerequisite for both. Free accountants need CPA to reach higher levels of leadership. Actually, CPA is the global certification of an accountant and validates them as a professional financial advisor. That's also why CPA is more important and more demanding in free accounting than private accountants.
Step 3: Determine the location and loss of each location
Whatever position you choose, you will also receive a special benefit and vice versa, accept a trade off something. Here are the typical gains and losses of these two popular accounting positions:
The benefits of free accounting
Advantages and career opportunities can evolve more quickly
Allows to bring into play specialized strengths in the field of accounting
Opportunity to meet and work with many diverse customers
Disadvantage of free accounting
Constant tension and deadline
Hours of work are not specific
The ability to move frequently
The benefits of private accounting
Less stress and pressure
Stable, familiar working environment
Easily manage positions without CPA
Disadvantage of private accounting
Lack of diversity in job tasks
Higher growth opportunities are often slow
Less opportunity to contact each specialized accounting field
Step 4: Select the suitable accounting position
Once you know what you need to know about free accounting as well as private accounting, it's time to set a path for yourself. This does not mean that you have to stick with a lifelong party if you accept to pursue that path. In fact, many freelancers have switched to working for the private sector after a long time of working with clients and private accountants leaving the company to do their free work to experience and learn. new knowledge.
Each field of accounting will give you an advantage and opportunity for career advancement. Ponder carefully to determine what your future path will be.