Explore the tables below to learn more about which industries employ the most CPAs, and which sectors offer the highest average salaries. Geographic location also impacts earning potential for CPAs and accountants. Some states may offer higher average salaries due to factors like increased demand, larger population, and higher costs of living. Accounting, tax preparation, bookkeeping and payroll services employ the largest number of accounting professionals, offering an average salary of $85,050 in 2020. According to data from the Bureau of Labor Statistics (BLS), accountants and auditors earn a median salary of $73,560.
High demand for CPAs
Similarly, your salary can range from $250,000 to low seven-figure pay when you reach a partner position. Again, this takes around a decade to obtain but addresses the dispersed salary range. As a result, salaries are not stagnant for too long because employees can prosper with hard work, consistency, and accumulated skills. This enables individuals’ career progression and the ability to become partners in about ten years. The CPA road isn’t an easy one, but it can reap long-term benefits for your career if you choose to walk through the doors that CPA licensure opens. An accountant oversees a company’s finances, tracking and organizing records to keep companies both cost-effective and compliant with the law.
Big Four Accounting Salary
Overall, the salary differences between firms are marginal, but this also has to do with services, location, and other factors. Simply because one firm generates more revenue than another does not necessarily mean that you will be paid better there, nor have a better fit. Your role, sector, experiences, and value added to the team all factor into your salary. Taking time to analyze each firm’s purpose and values places you at a significant advantage when looking for a good salary. By demonstrating how your experiences provide value while aligning with the firm’s goals, you increase your value and potential for higher pay. Earning potential is also a critical consideration when deciding if the CPA path is right for you.
By Industry
The group consists of global privately-owned accounting partnerships. While we’re focusing primarily on the average CPA salary, there is more to a career than money. Let’s take a look at other benefits beyond the earning power that comes with a CPA license.
Accounting Manager Salary by Global Country
While you might already enjoy the accounting profession, there’s nothing wrong with wanting to understand if a CPA salary will align with your long-term personal and professional goals. A 2020 LinkedIn survey placed certified public accountants (CPAs) in sixth place among the most in-demand jobs. The demand for CPAs continues to grow along with the economy and the need to maintain financial records. CPAs and general accountants will find that nearly every state offers job opportunity and growth. However, certain states—and regions within each state—may offer more job openings, faster growth, and higher earning potential than others. While education helps people obtain CPA licensure and higher salaries, experience also impacts earnings.
Start the road toward earning a CPA salary today
One of the reasons behind this salary difference stems from the additional rigor and standards required of CPAs to work in the field. The average additional cash compensation for a Accountant in US is $6,667. Accountant salaries are based on responses gathered by Built In from anonymous Accountant employees in US. Regardless of the industry, companies need skilled accountants to help run their enrolled agent salary business in adherence to local financial laws and regulations. However some of the nonmetropolitan areas with the highest employment rates for accountants include Kansas, northeastern and northwestern Ohio, and northern Texas. It will help you navigate the income statement, balance sheet, and cash flow statement if you want to pursue a career in the Big Four’s financial services sector.
- Unfortunately, this answer is somewhat subjective due to the many moving parts, including which country, region, city, sub-industry (e.g., consulting vs. audit), and position one refer to.
- Thus, they can pay their employees well, so their first years often receive anywhere from $40,000 to $60,000, while their partners can make upwards of $250,000 to $350,000.
- From here, accountants start careers in roles like a bookkeeper or payroll assistant.
- However some of the nonmetropolitan areas with the highest employment rates for accountants include Kansas, northeastern and northwestern Ohio, and northern Texas.
The average salary for an accountant in the United States is around $55,875 per year. Although all CPAs are accountants, not all accountants hold CPA licensure. As expected, accountants receive both bonuses and pay raises; however, they are often modest compared to the ones received within investment banking.
- However, it is worth mentioning that salary differences can often be marginal depending on the experience and value of a particular employee.
- Similarly, your salary can range from $250,000 to low seven-figure pay when you reach a partner position.
- To conclude, working in the Big 4 eventually pays exceptionally well, and, as discussed above, entry-level salaries vary marginally for sector, city, and region.
- Most accountants typically have a bachelor’s degree in accounting, finance, or business as well as CMA and CPA certifications.
- PwC, founded in London in 1849, is the second-biggest accounting firm in the United States.
- Again, this takes around a decade to obtain but addresses the dispersed salary range.
More specifically, the CPA average salary range⁵ is between $60,874 and $150,612, while the non-CPA average salary range⁶ is between $47,138 and $82,167. However, earning a CPA license can help prospective accountants pursue CPA positions, boost competition in the job market, and open doors to more opportunities. However, this career provides an upward earning trend for professionals who stay https://www.bookstime.com/ in the field and gain more experience, making now a great time to get started in the industry. They have one of the higher starting salaries for employees at an average of $71,000. Additionally, they have the highest growth rate out of all the Big 4 firms, approximately 7-8% annually. As of 2022, PricewaterhouseCoopers has over 295,000 employees and generates over $45 billion in revenue.
