Industry versus practice – what’s the difference?

During your studies, it’s very likely that you’ll hear the phrases ‘industry’ and ‘practice’ often. When working in the field, it’s usually a little easier to understand the differences – but when you’re new to accounting and finance, it can feel like you’re navigating through a maze.

So, let’s have a closer look at the key differences between working in industry and practice.

Job duties

The main difference between industry and practice accounting is the type of clients and job duties involved.

In industry accounting, you will work for a specific company or organisation. You’ll usually manage its financial accounts, prepare financial statements, and ensure compliance with accounting regulations, for example.

However, practice accounting involves working with various clients, such as individuals, small businesses, and corporations to help them manage their finances, prepare financial statements, and provide financial advice. The clientele is usually a lot more diverse, and you may have more freedom to determine who you work with.

Working environment

In industry accounting, you would usually work for a single employer and potentially in an office environment. Of course, in today’s world – this can vary. You may still work from home, but it’s likely that the organisation will have an office to work from if needed/required. In industry, you’ll also possibly be part of a larger accounting team and work closely with other departments within the business.

With practice accounting, this involves working for an accounting firm or as a self-employed accountant. Your work may be much more varied and may involve travelling to client sites and working from home more.

Career opportunities

The two areas of accounting will also offer different career paths. In industry accounting, you may advance within the company, progressing to senior accountant, manager, or director roles, for example.

Accountants in practice will usually find more opportunities to become a partner in the firm they work for, or even start their own accounting practice.

However, between the two of them, it all depends on your own personal and professional goals and preferences. For example, it’s still very possible to start your own accounting practice if you’ve worked in industry accounting.

Education

Both areas will benefit from having the relevant qualifications behind you. Qualifications such as ACCA or CIMA’s CGMA qualification will provide you with a better idea and understanding of the areas that you’re interested in going into, and every employer will have different requirements for a job role.

However, with practice accounting, slightly more emphasis may be put on professional experience and networking skills to gain clients and build your reputation in the field.

Final thoughts

Many factors such as the job responsibilities and working environment may overlap between the two: industry and practice accounting. However, in a nutshell, industry accounting may find you in a more structured environment with clear progression opportunities and job security. While practice accounting may require more independence, networking, and will prove to be a great option to explore if you’re interested in setting up your own business in the future.

Nevertheless, both areas offer rewarding careers and the opportunity to make a difference in the financial world.

Ready to start your exciting career?

If you’re new to the industry, looking to upskill, or change careers altogether, then the AAT qualification may just be the perfect fit for you. Gaining your AAT qualification will act as a great foundation for you to explore your career options further and understand what you enjoy most about accounting and finance.

You can subscribe to the full AAT qualification so that you can complete your studies in your own time, at your own pace, but with as much support as you need.