[jlondon]

For those with many years of experience, or for those who know of people who have gone down either path, I would like to ask what is your experience.

In working for government, the salary would be lower as compared to industry, but the benefits would be the pensions and it is also a stable job. Also, there would probably be less perks in government accounting (such as compared to start ups/ industry environments).

Where as in industry, the salary is high, but working in corporate might not be as beneficial because there isn’t a pension. The nice thing about working in industry / start ups, is all the perks. But it is also unstable because lay offs can happen anytime.

What are your opinions for each? Has anyone calculated out an estimated total pensions benefit amount vs. how much they could have made during their time working in industry.

BEC: 69, 57, 72, 73, (anticipated for 4/4/2015)
AUD: 65, 63, 74, 84!!! (expires 7/31/2015)
FAR: 63, 57, (scheduled for 4/1/2015)
REG: ... 42, (Anticipated to be around 5/20~)

-Every Set Back is a Set Up for a Major Come Back #motivation

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed." - Michael Jordan

"You are not your past, but the resources and capabilities you glean from it" -Jordan Belfort

[Anonymous]

How much you could make in either place is too variable to really compare one to another and determine what is the premier financial choice. Basically, government is good for security and predictability, industry is good for a chance to make it big. In government, you'll not be paid as much and pay will be less based on performance (someone who has been there 5 years more will probably always make more, since raises are usually set in stone – like 1.5% after 6 months on the job, then 1.5% every 18 months thereafter, or something like that), but will always be assured. In industry, if you're useless you'll get paid nothing; if you're useful, you'll get paid more, but could get laid off, or the company could be tight financially and not give any raises at all for 5 years.

There is some range between government and industry, though. A start-up is no security at all; a long-established college or non-profit is almost like government in that getting fired is nearly impossible, though financial issues can still crop up.

If I was deciding between government and industry, my main considerations would be: How much risk can I take? How good are these specific offers (say you have one from Joe's Tackle Shop and one from the City Auditors – consider each one on their own merits, not on government vs industry overall)? Which work environment would I be happier in?

Just as a side-note, government work is usually more laid-back, which some people find enjoyable and others don't. If you prefer to push yourself hard, you'd want a government role that there's always work to do, and you'd have to be willing to be the hardest working person in your department. On the other hand, if you prefer to do things methodically and at a slower-pace, industry may take issue with that and not be very happy with such work.

[Anonymous]

I spent 8 years in the banking industry and I've been working for the Government for the last 6 months. Both have positives and negatives.

Government is VERY hard to get into. Especially today with really tight budgets, deficits and a ton of congressional oversight. Government simply isn't hiring much because they can't afford to. To make things more difficult, veterans and current/former Government employees will, usually, get priority with open positions. But once you're in, you're golden.

Contrary to popular belief, the pay isn't that bad. I'm a Grade Scale (GS) 09 and in my area I make just over 50K a year (in an area where the cost of living is pretty low). In another 6 months, I'm guaranteed a promotion to a GS 11 and will make just over 60K a year. When I have my CPA license, I will be eligible for non-supervisory GS 12 positions (they're hard to come by but impossible without some form of certification and the CPA is heavily weighted in the consideration). A GS 12 makes just over 70K a year in my area. It's unlikely that I will ever make 6 figures with the Government but 60K a year ain't too bad.

The main thing that the Government has going for it is the stress free environment. This is both really good and really bad. You will see things that make you want to scream. There are things that are incredibly inefficient or just flat out stupid but you need to accept it because that's the Government way. But I get liberal telework (work from home), generous amounts of time off and my 9 to 5 is, truly, 9 to 5. You also have to really screw up to get fired. Again this is good and bad. There are people who you will see around you that you KNOW should have been fired years ago but they haven't screwed up quite enough to get there yet. The way I describe supervisors in the Government is all of the responsibility and none of the power.

So right now the Government works for me. The pay is decent for the hours I work and the stress free environment. It's got the best work to life balance I've ever had. I always get home at a good time.

The last thing I will say is this. I think the best Government employees are the ones who spent a number of years in the private sector before coming to the Government. People like us appreciate the benefits that the Government has to offer more than someone who has only worked in Government positions and we are more likely to be mindful of our productivity and keep our bad habits to a minimum (general rule and stereotyping but I do believe it to be true).

[jlondon]

Thank you both for your opinion and advice.

@Angelwatch I like the stress free environment. I'm currently in industry and get paid $60k, but I am a bit stressed, especially when it comes to audit time. My family has been stressing and drilling into my head to go for government jobs because of the benefits and how stable it is, but it was hard for me to take their advice because of their background (they were not born here), and because of my competitive attitude developed from studying accounting in college.

I'm going to consider going into a big 4 first and then eventually transition into government since I think it will be better for my health during my later years.

BEC: 69, 57, 72, 73, (anticipated for 4/4/2015)
AUD: 65, 63, 74, 84!!! (expires 7/31/2015)
FAR: 63, 57, (scheduled for 4/1/2015)
REG: ... 42, (Anticipated to be around 5/20~)

-Every Set Back is a Set Up for a Major Come Back #motivation

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed." - Michael Jordan

"You are not your past, but the resources and capabilities you glean from it" -Jordan Belfort

[Anonymous]

I've worked in both. I started my career in gov and have transitioned to industry in the last year.

As others have stated, industry pays substantially more. My current company also offers more (and better!) benefits than what I was receiving in gov (healthcare, 401k match, even comparable vacation time).

I got out of gov because it was easy to get stuck and in my position promotions were based solely on experience instead of merit. It was easy to get stuck.

[Lion_of_the_Rock]

The work/life balance for Govt employees is hard to beat. My other half is a GS-13, clears 6 figs, works 40 hour weeks and basically decides when she goes into work and when she works from the couch at home. We live in the DC metro area, have a comfortable life and one kid.

The con is basically you could work for or with people who don't really understand how to do their job and can't get fired.

BEC - 78
AUD - 75
REG - 74, 79
FAR - 75

You have to buy a ticket to win the raffle.

[Java230]

I work in government as well, 8 years now. I picked between big 4 and the government, I picked the government as the starting salary was the same and in the government I was told I wouldn't have to work over 40hrs. BIG 4 promised me the opposite, I would be required to work over 40 hrs a week but your career pay potential is alot higher in the big four. It's a trade off. I wanted kids when I started, so work life balance was most important.

I think angelwatch and I work for the same company, so I have exact same comment.

Licensed WA CPA 2/2015
Government Auditor Since 2007

[Java230]

I would also add that when economy is good, in my opinion, private sector is better as there are tons more opportunities and the job is more exciting. Like now, private sector has way more opportunity, government doesn't hire much now, promotions are hard to get.

When times are hard, government hires and has a lot of promotional opportunity, and has the stability you need during hard economic times.

If I was you, I would go private now, it's really hard to get a government job now and your promotional opportunities are lower.

Licensed WA CPA 2/2015
Government Auditor Since 2007

[ScarletKnightCPA]

Government jobs paying less is mostly a myth. Actually, Government jobs tend to pay more than private for all but the higher level jobs. I'm not sure why this myth persist despite the fact that there is readily available salary statistics these days.

See: https://www.cbo.gov/sites/default/files/01-30-FedPay_0.pdf

Far: 76 (Wiley Test Bank)
Aud: 77 (Wiley Test Bank)
Reg: 61, 76 (Wiley book, Wiley Test Bank)
Bec: 86 (Wiley Test Bank)

MBA in progress

[Anonymous]

I think it depends on the specific government job and on the specific other options. The government job that I interviewed for paid reasonable at the start, but over time would have paid much less than other options that I had. However, this was 1 government job compared to 1 person's other options. It was also State for whatever that affects.

[Anonymous]

As I said in my post above, the pay for a Government position can be very reasonable. When I spoke to E&Y, they said I'd, likely, make in the 50K neighborhood starting. That's what I'm making with the Government. And after 1 year (which is September for me), I get a bump to 60K a year. So the starting pay is very reasonable and very comparable to private.

The thing with Private is that your ceiling is MUCH higher. If everything works out, the most I can expect to make in the government is around the 80 to 90K mark and that's going to be well down the line. In the private sector, you can do much better than that with annual salary and bonuses but you also have to fight for that pay and perform at a very high level.

But I also remember when I was in the banking industry that raises were terrible and you had to fight hard for more money by constantly applying for promotions and new positions. That's one thing I don't miss.

[mw798]

Deleted double post

[mw798]

If you live in the north east, Federal Government pay is almost always higher than the private sector in finance or accounting positions for any level below senior manager. Even at the senior manager level, its pretty comparable. In the Baltimore metro area, auditors and accountants will probably clear $110k after 8 years at the Fed with their CPA. I know of a few who are at this salary (federal salaries are public so you can search by name). I also know of a senior financial analyst working for the dept of transportation who is clearing $125k/year and he's only 33. You won't find that in private, that's for sure! Unless you hit the executive level, I think Fed salaries max out at $160k or so. But if in this off chance you do, I believe that Federal executive salaries maxes out at around $200k/year which is nothing compared to industry executives who get large bonuses, but what are the chances you will ever hit CEO or CFO at a fortune 500 or hit partner at a Big 4?

This is for Federal Government only. State pay can be ridiculously low. The state of md, for example pays peanuts, but if you can get a fed job in MD you are golden for life.

[kettlecorn]

God I wish i can get a government job. I applied to gs 5 and some gs4 internships and cant get one. Maybe I need to relocate and apply nationwide

[mla1169]

I know when you're young it's compelling to base career decisions on numbers and statistics, but really it's about what you do well and enjoy doing. I'm sure I could make more money than I do (especially if I was willing to commute into Boston as opposed to staying closer to the suburb where I live.) I like working for a manufacturer. I like cost accounting. I am also a real people person, I like HR. So I landed a job as a finance and admin manager for a small co. I've got one direct report and I report directly to the CFO in the UK. I do everything from benefits, to budgeting, to payroll and taxes. I work 50+ hours every week but it feels like 20 because I'm so busy the entire time.

Instead of worrying about public, private or govt, take a careful inventory of your strengths and talents, and what kind of career won't have you among the hundreds who post here every year about how miserable they are with their jobs.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[jschrei2]

Also, Federal government pay, is typically higher than State government, and definitely higher than local government. I work in State government, with the State Auditor's Office, and starting pay was only slightly less than the starting pay of the Big Four offer I received. However, as others have mentioned, there is definitely a much higher potential for larger salary increases in private industry. I decided to work in government because I'm guaranteed a forty hour work week and a good work/life balance. If I'm traveling, or for some other reason, I work in excess of forty hours one week, I'll flex the following week so it works out to a total of 80 hours for the two week period. Also, generally speaking, a government job will be more stable, however there is always a possibility of furloughs due to not enough funding. However, a furlough is better than being laid off. Both have their benefits, and you really have to decide what is most important to you.

FAR- 88
REG- 88
AUD- 93
BEC-86

[Author]

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