Practice versus commerce – the BIG decision for accountancy graduates

Most accountancy graduates know instinctively whether they wish to pursue a career in public practice or work in commerce. However, a significant number are either undecided or unsure which path to take, often making the decision on the basis of a random event, such as who they meet at a jobs fair or applying to both sectors and taking the first job offered.

This is a critical moment for accountancy graduates, where the career path splits, and the longer you remain on one course the harder it can be to switch if it subsequently turns out to be the wrong choice.

To understand the difference between working in practice and working in commerce we’ll list the most common aspects of each although they are general and there are exceptions.

Accountants in Practice

Many entrants into public practice have an eye on the coveted status of partner, and a firm can have more than one partner, so if you thrive and help grow the accountancy practice they can accommodate you at the very top.

You’ll have a choice of working on the high street in a smaller more family-like atmosphere where you’ll have a chance to get close to the partners or larger city centre based firms with a more corporate structure and more rapid promotion.

For those seeking professional qualification the training will be more diverse in general accountancy practice, ultimately giving you the most choice as you progress the career ladder.

Many accountants work as sole practitioners so once you have got the requisite experience you can strike out on your own.

There will be strong pressure to utilise your time in a manner that maximises billable hours to clients.

The average “high street” accountancy practice will have a variety of clients in a variety of business and financial settings giving you all round experience and perhaps offering you an opportunity to specialise.

Most accountants in practice will be office based with a small amount of local or regional travel from time to time, although larger firms could send you up and down the country if their clients have a national spread of branches or depots.

In the longer term the salaries in general accountancy practice are more likely to be higher even if you have not reached the top of your game.

It will be easier to transfer from general accountancy practice to commerce than vice versa and there are more opportunities in general accountancy practice than in commerce, with some career paths offering highly specialised routes such as taxation or insolvency.

In an economic downturn general accountancy practice will probably be more resilient than commerce.

Accountants in Commerce

Most commercial positions are with larger firms often with a national or international footprint.

You will probably be more focused in areas of expertise which could leave you with a narrower skills and knowledge base.

Large commercial organisations can be vulnerable in a downturn as they trim staff numbers in non-core areas such as finance.

You may find it difficult to transfer into general practice.

You won’t have clients to meet but will spend probably spend more time in meetings and answering to superiors at board level, with the focus on maximising profitability for a single organisation

There is no partner status to attain and most firms will only have a single finance director.

Salaries are lower in the longer term but you have opportunities for share options and more generous benefits.

There could be more opportunity to travel nationally and internationally.

Keywords: accountancy graduates, Accountants in Practice, accountancy practice, Accountants in Commerce, finance director