Looking for CPA salary information in the accounting field? We are here to assist you! A CPA license offers various benefits, the most tempting of which is a boost in earning potential. Finally, a licensed CPA’s salary in the accounting sector is more than that of an ordinary accountant. In this guide, we’ve put together a high-level view of the main contributing factors to a CPA salary in the accounting industry, even as an entry-level or senior-level CPA while staying in either California or Florida. Read on!
What is the Average CPA Salary & How Much Do Accountants Make?
Without bonuses, the typical CPA salary in California, Florida, or other states, according to the Bureau of Labor Statistics (BLS), is roughly $119,000 per year. CPAs with less than one year of experience make $70,000 per year on average, while those with more than 20 years of expertise earn $150,000 per year on average.
- Average Non-Certified Accountant Salary: $50,129* per year (excluding bonuses)
- Average CPA Salary: $119,000* per year (excluding bonuses)
Factors that Determine a CPA Salary
When it comes to the salary of a registered CPA in the accounting sector, you will note that there are numerous factors that can affect the pay, either boosting or decreasing it, regardless of whether you live in California or Florida. These elements are as follows:
#1. Experience
A degree in accounting allows you to enter the profession immediately and make a competitive salary as an accountant in a range of industries. But did you know that getting your CPA license can lead to greater promotions, management positions, and a higher CPA salary? CPAs earn 10-15% more than their non-certified counterparts on average.
#2. Industry
Salaries in fast-growing businesses, such as financial technology or software, can be greater than the national average. As a CPA, you can work for major accounting firms, such as the Big Four, well-known worldwide organizations, or smaller local firms, in auditing, taxes, quality assurance, or advisory services. Certain businesses, such as hospitality, healthcare, and education technology, have been expanding and wanting to hire more accountants in recent years.
#3. Company Size
According to the BLS Occupational Outlook Handbook, employment of accountants and auditors is predicted to grow by 4% between 2019 and 2029. This is quicker than the national average for all vocations. The strong employment outlook is attributed by the BLS to the continuous demand for qualified individuals who can compile and evaluate financial records throughout economic growth.
#4. Location
Salaries vary by region and are heavily impacted by the health of the economy. The higher the median salary for a CPA, whether in California or Florida, since cities have more competition, opportunity, and capital. Financial specialists are in high demand in countries with a thriving economy, and as a result, those positions are well compensated.
The cost of living in cities is higher, with certain places being more expensive than others. Larger cities typically offer more access to a wider range of career possibilities, which can contribute to job satisfaction and higher earning potential.
Overall, accountants are frequently well-paid, so it is advisable to first determine where you would like to live and then align your income expectations properly.
How Does Experience Affect CPA Salary?
Your salary as a CPA will climb steadily as you gain experience, from entry-level to the top level in the accounting sector. In most cases, your experience and competence are the most crucial criteria in determining your salary.
As a result, the higher your salary, the more your liabilities. Some applicants, however, may have less-than-average employment experience. This could indicate that they have been working in a low-competition industry, or that there is a need for more key skill development.
#1. Entry-Level CPA Salary
The starting salary for a Certified CPA entry-level position is roughly $64,000, however it can range from $44,000 to $84,500 depending on where you live and work. Your salary will be determined by your duties and skills as you earn experience. To become a CPA in most states, you must have at least two years of public accounting experience. As a junior accountant (1-3 years), you may already be certified or be in the process of becoming certified.
#2. Senior-Level CPA Salary
You become a senior accountant after 4-6 years of experience. As your career progresses, you should expect to have more tasks and commitments. You will have developed areas of interest and expertise by this time in your career, and your job title will most likely reflect your specialization. Salaries in this stage of your career could range from $74,750 to $102,000.
#3. Manager or Director CPA Salary
After a few years in a senior job, your achievements and areas of expertise become more essential than your years of experience. To progress to positions of leadership, you must distinguish yourself. The top rank on the ladder is not for everyone. Applicants in this group have more experience, competence, and/or certifications. Senior-level salaries average around $109,750.
How Does Industry Affect CPA Salary?
The first big decision a new accountant must make is whether to work in public or private accounting. Accountants are well compensated in both the public and commercial sectors. In contrast, public accountants earn slightly more than their private colleagues in comparable professions.
#1. Public accountant salary
Working in public accounting is one of the best ways to advance your accounting career, but it is also one of the most demanding. A beginning public accountant may expect to make roughly $57,750 per year.
As a public accountant, you might specialize in a variety of areas. You can find the best fit for your preferred lifestyle among the employment roles listed. Here are four public accounting professional specialties:
- Auditing/Assurance
- Tax Compliance and Planning
- Advisory and Consulting
#2. Private accountant salary
When working for a private company, you can take on a variety of roles. A starting salary for a private accountant at the entry-level is roughly $57,250 per year. CPAs should expect to earn 10-15% more than non-CPAs in the private sector. Starting a career in the private sector after college is an excellent option for many students. Private accounting employment can provide sector expertise and, in some situations, a better work-life balance than public accounting careers.
Here are a few instances of private-sector accounting jobs ranging from entry-level to senior management:
- Accounts Payable
- Accounts Receivable
- Internal Auditor
- Financial Analyst
- Controller
- CFO
- Corporate Accountant
- Tax Accountant
How Does Company Size Affect the CPA Salary?
Large firms, in some situations, provide more advantages and amenities to their employees, such as gyms, cafeterias, and daycare centers, than smaller businesses. People, on the other hand, have a greater say in the perks and benefits they receive since smaller enterprises can be more flexible and attentive to their demands.
Some large firms are ready and able to offer competitive salaries in order to recruit top staff. The more a company’s employees, assets, or clientele, the more complicated some accounting obligations become, and an accountant’s salary reflects this. The Big Four accounting firms are notable examples of public accounting businesses where an entry-level CPA may expect to earn more than the average starting salary.
Accounting vs. CPA Careers
While all CPAs are accountants, not all accountants are CPAs and becoming an accountant is easier than becoming a CPA. CPAs must complete “educational, experience, and ethical requirements,” as well as pass the Uniform CPA Exam, to be awarded a license.
Candidates must finish 150 semester hours of education in addition to any other state requirements. Depending on the program, you’ll need an undergraduate degree, some graduate courses, a master’s degree in accounting, or an MBA with an accounting specialization.
In the end, businesses cherish the higher standard to which CPAs are held. CPAs are the only people who, once licensed, may perform mandatory audits at public corporations.
Because of the rigorous criteria of the CPA designation, they are often more educated than their counterparts. Keeping this in mind, broad accounting salaries are deceptive. A significant distinction between an ordinary accountant and a CPA is that only the latter may prepare an audited financial statement. This is a major reason why CPAs are in high demand in large corporations that require audited financial accounts.
Non-Salary Benefits of Becoming a CPA
Aside from higher salary potential, the CPA credential can boost your total earnings and provide a number of other advantages that can improve your accounting profession.
#1. Increased Growth and Benefits
The financial benefits of the CPA credential begin well and improve over time. Many organizations provide a completion incentive of several thousand dollars to employees who pass the CPA Exam. CPAs should expect to receive frequent and higher-level promotions. These promotions include a better salary, more authority and responsibility, and extensive experience.
#2. Increased Job Security
Due to the retirement of many Baby Boomers, there is currently a lack of experienced accounting experts. Businesses, organizations, and governments will always require accounting services, and computers will never be able to replace a competent CPA. As a result, the CPA credential provides accountants with more job security during a time of uncertainty.
#3. Increased Career Opportunities
Certified professional accountants offer a variety of job opportunities. Public accounting positions you in accounting firms that give services to other businesses or governments, whereas private accounting entails working directly for a company in their accounting department.
#4. Increased Personal and Professional Development
The CPA Exam is designed to evaluate your professional competence in auditing, company law and concepts, taxation, and accounting. Passing the CPA Exam so demonstrates that you are fully capable of fulfilling the primary duties of a CPA in today’s accounting sector. Maintaining your certification will also necessitate ongoing study and skill development. The commitment necessary to pass the CPA Exam shows employers that you are dedicated to the profession and deserving of consideration for leadership and management jobs.
#5. Increased Trust and Respect
Obtaining a CPA requires a level of concentration and work ethic that distinguishes accountants from their counterparts. CPAs can also use the title to demonstrate great skill and accomplishment through years of training, which impresses employers, clients, and society. CPAs are a unique professional group that is admired by almost everyone in the industry for their dependability and efficiency.
These advantages of being a CPA clearly show that becoming a CPA is one of the best professional decisions you can make as an accountant or accounting student.
Can CPAs Make a Lot of Money?
CPAs in their early careers (one to four years in the field) earn an average of $60,000 a year. Late-career (more than 20 years of experience) CPAs earn an average of $98,000 per year, a significant rise. Furthermore, certain firms may provide CPAs with performance-based incentives and other monetary advantages.
What Is a CPA’s Top Salary?
CPAs with a license can pursue a variety of careers. Top-tier accounting executives and directors can earn up to $200,000 per year, which is more than four times the average beginning salary for a basic accountant.
Is CPA Exam Hard?
The CPA test is regarded as one of the most difficult professional exams due to the amount of content covered and the length of the exam (16 hours divided into four exam sessions).
Is CPA a Happy Job?
Accountants overall assessed their work environment as 3.1/5 enjoyable. The majority of them love or are not actively troubled by their work environment.
Can You Make 200K as a CPA?
You can make $200,000 if you join the Big 4 and stay for ten years till you become a very experienced Sr. Manager. To get $400K, you’d need to work for a Big 4 firm for 15 to 20 years and become a partner, which is difficult.
Which Big 4 Accounting Firm Pays the Most?
If you want to make the greatest money in consulting, Deloitte is the best place to work. PwC, on the other hand, is certainly your best pick if you want to make the greatest money in auditing or tax.
What Is the Lowest Salary of a CPA?
The majority of an Entry Level CPA salary now ranges from $34,000 (25th percentile) to $49,500 (75th percentile), with top earners (90th percentile) making $65,500 yearly across the United States. ZipRecruiter has annual wages as high as $77,500 and as low as $23,000.
Conclusion
Many accounting experts believe that becoming a CPA is a smart choice. Still, it makes the most sense for individuals looking to advance in their careers and improve their education in accounting. Earning a CPA credential and, as a result, an appealing CPA salary takes time and work.
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- HIRING A CPA: Benefits and Costs Of Hiring a CPA
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- PUBLIC ACCOUNTING: What is Public Accounting (+ Detailed Salary Structure)
- Tax Accountant Salary in the US (Updated!)
- CPA VS ACCOUNTANT: Difference & Which Best Suit Your Business
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