Whats the difference between Practice and Industry

SilverChair

Like the title says. I know so very little about accounting and this seems like a basic enough piece of knowledge.

I checked google and wikipedia but the terms arent defined.
When talking about accounting, what do the terms "industry" and "practice" mean?

easyontheeye

ill take a guess

is practice an accounting firm

and industry like working as an accountant in a non accountant firm like IBM, coca cola...etc etc

im curious too!!

suckslikeafox

Im open to correction but I think practice refers to working for an accounting firm, dealing with many different clients. Industry would be working for one firm, only dealing with their accounts and hence being in a single industry.


But like I said, i wouldnt be 100% about that

Kinetic^

In practice you work for an accounting firm. You carry out tasks such as:
Audits, annual/management accounts, tax returns, company registration returns.....all for various clients.

In industry you will work directly for a company where you will more then likely start off processing invoices, bank reconciliations etc.

In practice you will generally get more study leave for your exams but are treated like a slave until you qualify.

I've worked in both. Imo, there's better training in practice.

SilverChair

Thanks, so if I was working as a fund accountant I would be in practice, as I would do work for many clients?

Kinetic^

SilverChair wrote: »

Thanks, so if I was working as a fund accountant I would be in practice, as I would do work for many clients?

If you were a fund accountant you'd be working for an investment firm. Completely different side of things. Unfortunately I can't help you out on that as I've not worked in a role like that.

Superdub2

SilverChair wrote: »

Thanks, so if I was working as a fund accountant I would be in practice, as I would do work for many clients?

people tend to get the terms "fund accountant" and "accountant" mixed up, mind you its only the fund accountants who tend to do so!

A fund accountant is not a qualified accountant in any sense of the word and that is simply the name of their position. They basically process the accounting transactions of funds for possibly a fund investment organisation or in an accountancy firm with a funds department. It is not a qualified accountant.

to work in practice mans to work for a specialist firm of accountants, eg Deloitte, KPMG, E&Y, PWC. In these places ACA is generally the preferred and encouraged route but many ACCA's work in practice too.

To work in industry means to work for an organisation that does not provide accountancy related services. Any other company basically, eg Dunnes, Cocal cola etc etc. To work as an accountant in such an organisation would mean you were working in the accounting or finance department. ACCA is generally the preferred route here but then i do know some ACA's who went this way but very few!

ACA is much more formally structured with students signing up to formal training contracts and completing their exams in a structured manner over 3.5 years (generally) with a lot of support from their employers such as generous study leave 6-8 weeks for prof 3's and 8-12 weeks for FAE's

ACCA's are not bound by a training contract and do not get any where near as much study leave with generally less support from their employers

Fishyfreak

Great info there about "Fund Accountants". I remember asking a friend of a friend (who is a Fund Accountant) what Accounting Body he studied with and got a blank look from him as he said he didn't study with anyone.

I was confused to say the least that he was telling everyone he was an Accountant but had no qualification. Cleared that up for me now. Cheers.

Working in industry is not just doing the accounts for one single company. There are various bits and you could be doing financial planning and analysis, project accounting etc looking at margins and revenues and not worrying too much about the notes to a financial statement.

CIMA is also an option in industry or consulting.

Though saying that, unless you join a graduate finance program in industry, your first job will be processing invoices in accounts receivable or accounts payable, and you will be there for a good while until you pass some exams.

Superdub2

Deleted User wrote: »

Working in industry is not just doing the accounts for one single company. There are various bits and you could be doing financial planning and analysis, project accounting etc looking at margins and revenues and not worrying too much about the notes to a financial statement.

CIMA is also an option in industry or consulting.

Though saying that, unless you join a graduate finance program in industry, your first job will be processing invoices in accounts receivable or accounts payable, and you will be there for a good while until you pass some exams.

You say working in industry is not just doing accounts. Working in industry is not a "job" in itself and it depends on what your actual job is. if its your job is to do accounts thats what you will be doing, if it is to make coffee then thats what you will be doing so nobody can say what a job in industry entails bar your boss.