Certified Public Accountants (CPAs) are highly sought after by companies in various fields and for a very good reason. A skilled accounts expert is required by nearly every corporation to compile the accounts and provide financial guidance.
According to Indeed, the average annual salary of a CPA in the US is $81,696. CPAs are in high demand, which means they have better pay, job security, and constant career advancement. Though a CPA’s income is difficult to top, the attractive package does not come cheap. Accountants conduct various difficult tasks, including tax preparation, financial reporting, and auditing, among others, that necessitates a high level of financial and accounting knowledge.
Factors That Determine An Accountant’s Salary
Accounting salaries are determined by different criteria, including education, experience, geography, and industry. Listed below are the factors that affect an accountant’s salary:
Not all accountants are CPAs, but all CPAs are accountants. To become a CPA, you’ll need a combination of education and experience, as well as the ability to pass the tough Uniform CPA exam. The minimum requirement in most states is a bachelor’s degree.
You must meet the required on-the-job work experience and ethical standards to be awarded a license. CPAs often have a higher level of education than their counterparts, so they earn more money. At the same time, companies recognize CPAs’ high standards and are ready to pay more for them.
While the typical CPA pay in the United States is roughly $80,000 per year, senior CPAs having more than 20 years of experience can expect to earn around $150,000 per year.
The salaries of CPAs vary based on how many years of experience they have, along with the location and size of the company and the professional’s experience level.
- Entry-Level: $40,000 to $65,000
- Junior-Level (1-3 years of experience): $52,000 to $87,000
- Senior-Level (4-6 years of experience): $66,000 to $110,000
The Bottom Line
The differences in salaries by states are related to differences in the cost of living in different cities. A shortage of accountants in some states may increase demand, resulting in higher compensation for CPAs in particular states.
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