Public sector accounting: graduate area of work

What do public sector accountants do?

Public sector accountants manage the financial operations of government organizations, including local councils, the NHS, educational institutions, and charities. Their roles typically include:

• Budget preparation and management: Developing, overseeing, and adjusting departmental budgets in alignment with strategic goals and regulatory standards.
• Financial reporting: Producing transparent, auditable reports for internal and external stakeholders, such as audit agencies and government oversight bodies.
• Auditing: Conducting internal audits to ensure compliance, detect inefficiencies or fraud, and prepare for external audits from bodies like the National Audit Office.
• Cost analysis: Forecasting financial impacts, analysing alternatives, and helping optimize resource use, especially under budget constraints.
• Policy advising: Offering financial insights into public policy decisions, helping ensure sustainable, value-driven governance.
• Compliance and risk management: Establishing internal controls to prevent fraud, manage risk, and ensure adherence to laws and regulations.

Why choose a career in public sector accounting?

1. Social impact

Public sector accountants help ensure that public funds are spent responsibly on essential services like healthcare, education, and public safety. Their work directly contributes to the well-being of society.

2. Job stability

Public sector roles are less susceptible to economic downturns or corporate restructuring, offering greater job security than many private sector positions.

3. Work-life balance

Public sector roles often feature more generous leave entitlements (typically 25–30 days), flexible work arrangements, and a healthier balance between work and personal life.

4. Professional development

Graduates are usually supported in earning relevant accounting certifications, such as:

• CIPFA (Chartered Institute of Public Finance and Accountancy)
• CIMA (Chartered Institute of Management Accountants)
• ACA (Institute of Chartered Accountants in England and Wales)

5. High ethical standards

Public sector accountants operate under strict codes of conduct, with a focus on transparency, accountability, and integrity—values essential for managing public funds and maintaining public trust.

How to enter public sector accounting as a graduate

Educational requirements

A degree in accounting, finance, economics, or business is ideal. However, candidates from unrelated disciplines may be accepted if they can display strong numeracy and analytical skills.

Graduate schemes

Numerous public bodies offer structured accounting graduate schemes, including:

• National Audit Office Graduate Scheme
• Local Government Association schemes
• Civil Service Fast Stream (Finance)

These typically last 2–3 years and involve rotations across departments to build a broad foundation in public finance.

Barriers to entry

Competition can be high, especially for central government roles. Success often depends on academic performance, relevant work experience (e.g. internships or volunteering), and alignment with public service values.

Application processes may include:

• Online applications
• Psychometric tests
• Assessment centers
• Panel interviews
• Case studies or written exercises

Salaries and career progression

Starting salaries

Entry-level salaries typically range from £24,000 to £30,000, depending on location and employer. For example:

• National Audit Office (2025): £29,000–£32,000
• Local authority roles: £24,000–£27,000

While initial salaries may be lower than in the private sector, public roles often include:

• Fully funded qualifications
• Defined-benefit pension schemes
• Generous leave and flexible work

Career progression and future potential

Public sector accountants can see significant salary growth:

• Newly qualified: £36,000–£45,000
• Finance manager (e.g. NHS or local authority): £45,000–£60,000
• Senior leadership (e.g. CFO, Director of Finance): £70,000–£120,000+

Experienced professionals in national roles can earn salaries competitive with their private-sector peers.

Conclusion

Public sector accounting offers a fulfilling, stable, and socially impactful career. While initial compensation may be modest, long-term rewards—in terms of development, ethical practice, and public service—are considerable. For graduates driven by purpose, values, and a desire to make a difference, public sector accounting is an excellent path worth serious consideration.