How Much Does an Accountant Make? A Comprehensive Guide

As one of the most sought-after professions in the finance industry, accountants help businesses, organizations, and individuals manage their finances, taxes, and investments. But what is the earning potential of an accountant? Whether you’re considering a career in accounting or you’re curious about the salary ranges for different positions, this comprehensive guide will provide you with all the information you need to know.

Factors Affecting an Accountant’s Salary

Before diving into the actual salary ranges for accountants, it’s important to understand the various factors that could affect an accountant’s earning potential. Here are some of the most common factors:

Education and Certification

Education and certification play a crucial role in determining an accountant’s salary. Typically, accountants with a bachelor’s or master’s degree in accounting or finance tend to earn more than those with just a high school diploma or associate degree. Additionally, obtaining a certification such as Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Certified Internal Auditor (CIA) could significantly impact an accountant’s earning potential.

Years of Experience

As with most professions, the more experience an accountant has, the higher their salary is likely to be. Entry-level accountants typically start with a lower salary than those with several years of experience. However, accountants who have been in the field for a long time may reach a salary plateau, where their salary growth slows down or stops altogether.

Industry and Company Size

Accountants’ salaries may also vary depending on the industry they work in and the size of the company they work for. For instance, accountants working for large corporations or financial institutions may earn a higher salary than those working for smaller businesses or non-profit organizations.

Geographic Location

Lastly, an accountant’s salary may be influenced by their geographic location. Generally, accountants living in urban areas or major cities tend to earn more than those living in rural areas or small towns. However, the cost of living in these areas may also be higher, which could offset the higher salary.

Average Salary of Accountants

So, how much does an accountant make? The average salary for an accountant in the United States is $71,550 per year, according to the Bureau of Labor Statistics (BLS). However, this figure can vary greatly depending on the factors mentioned above.

In the next section, we’ll dive deeper into the different salary ranges based on education, certification, and experience.

Average Salary of Accountants (continued)

National Average Salary for Accountants

As mentioned earlier, the national average salary for accountants is $71,550 per year. However, this figure can vary depending on the accountant’s location, education, certification, and experience. According to the BLS, the top 10% of accountants earned more than $124,450 per year, while the bottom 10% earned less than $44,480 per year.

Comparison of Salaries Based on Education and Certification

According to a survey conducted by the National Association of Colleges and Employers (NACE), accountants with a bachelor’s degree in accounting or finance earned an average starting salary of $57,511 in 2020. In comparison, those with a master’s degree in accounting or finance earned an average starting salary of $68,797.

Certifications can also impact an accountant’s salary. According to a survey conducted by the Institute of Management Accountants (IMA), those with a CMA certification earned an average salary of $125,000 in 2020, while those without a CMA certification earned an average salary of $78,000.

Comparison of Salaries Based on Years of Experience

The amount of experience an accountant has can also impact their salary. According to PayScale, an entry-level accountant with less than one year of experience can expect to earn an average salary of $48,000 per year. However, an accountant with 20 or more years of experience can earn an average salary of $82,000 per year.

Salaries of Different Types of Accountants

There are various types of accountants, each specializing in different areas of accounting. Here are some of the most common types of accountants and their corresponding salaries:

Public Accountants

Public accountants work for accounting firms and provide accounting, tax, and auditing services to their clients. According to the BLS, the average salary for a public accountant is $80,200 per year.

Management Accountants

Management accountants work for companies and organizations and provide financial analysis, budgeting, and forecasting services. According to the BLS, the average salary for a management accountant is $87,760 per year.

Government Accountants

Government accountants work for federal, state, or local government agencies and ensure that financial records are accurate and taxes are paid on time. According to the BLS, the average salary for a government accountant is $74,940 per year.

Forensic Accountants

Forensic accountants investigate financial crimes such as fraud, embezzlement, and money laundering. According to PayScale, the average salary for a forensic accountant is $75,000 per year.

Understanding the different types of accountants and their corresponding salaries can help you determine which path to take in your accounting career.

Potential for Career Growth and Higher Salaries

As with any profession, accountants have the potential for career growth and higher salaries. Here are some factors that could impact an accountant’s earning potential:

Advancement Opportunities in the Accounting Field

Accountants who have a few years of experience under their belt and have obtained necessary certifications may move up the ranks and become senior accountants, managers, or even executives. In these positions, accountants may manage teams, oversee budgets, and make strategic financial decisions, which could lead to higher salaries.

Additional Certifications and Education for Higher Salaries

Obtaining additional certifications or education can also help accountants earn a higher salary. For instance, a CPA certification is highly valued in the accounting field and could lead to higher salaries and more job opportunities. Pursuing an advanced degree, such as a master’s in accounting or business administration, could also lead to higher salaries.

Comparison of Salaries for Different Accounting Positions

The salary ranges for different accounting positions may vary. For instance, public accountants who work for accounting firms tend to earn higher salaries than those who work in the government or non-profit sectors. Management accountants who work for large corporations may also earn higher salaries than those who work for smaller businesses.

Conclusion

In conclusion, understanding the earning potential of an accountant is crucial for anyone considering a career in accounting or finance. The factors that affect an accountant’s salary are numerous and complex, including education, certification, experience, industry, company size, and geographic location. However, on average, accountants earn a respectable salary of $71,550 per year.

Additionally, accountants have the potential for career growth and higher salaries by pursuing additional certifications, education, and advancement opportunities in the accounting field. By understanding the earning potential of an accountant, individuals can make informed decisions about their career and financial future.

At Wiki Mic, we strive to provide our readers with accurate and up-to-date information about the accounting industry and related topics. We hope this comprehensive guide has been helpful in answering the question, “how much does an accountant make?”