Accounting Salary: How Much Can You Expect to Earn?

How much does an Accountant make?

Accountants play a crucial role in helping individuals and businesses manage their finances and maintain accurate financial records. If you're considering a career in accounting or simply curious about the earning potential in this field, understanding the salary ranges is essential. The accounting salary can vary based on factors such as the specific role, level of experience, certifications, and location.

Accounting Salary Ranges

The accounting profession offers a wide range of career paths, each with its own salary prospects. Let's explore some of the common accounting roles and their corresponding salary ranges.

Bookkeeping, Tax Preparation, and Payroll Services

In entry-level positions like bookkeepers, tax preparers, and payroll specialists, individuals often focus on specific financial tasks rather than providing comprehensive financial advice. These roles are crucial for maintaining financial accuracy and compliance. Typically, professionals in these positions can expect a salary range between $35,000 to $60,000 per year, depending on their experience and the size of the organization they work for.

Insurance Companies and Finance

Accountants employed by insurance companies and finance institutions have broader responsibilities, including financial analysis, risk assessment, and investment management. Due to the added complexity of these roles, the salary range for accountants in this sector tends to be higher, ranging from $55,000 to $90,000 annually.

Government Jobs

Working as an accountant for the government can be both rewarding and stable. Government accountants are responsible for managing public funds, conducting audits, and ensuring compliance with financial regulations. The salary for government accountants typically falls in the range of $50,000 to $80,000 per year.

Junior Tax Associate/Accountant

As a junior tax associate or accountant, individuals focus primarily on tax preparation and assisting senior accountants with financial analysis. Salaries for junior tax associates range from $40,000 to $60,000 per year, depending on the employer and the cost of living in the area.

CPA Salary Ranges

Certified Public Accountants (CPAs) are highly qualified professionals who have passed the rigorous CPA exam and obtained a state-issued license. Holding a CPA designation opens up a broader range of opportunities and usually leads to higher earning potential. Let's explore the salary ranges for different levels of CPAs.

Entry-Level CPA

Entry-level CPAs, despite having their CPA license, may have limited work experience. However, their salary prospects are generally better than those of non-certified accountants. As an entry-level CPA, one can expect a salary between $55,000 and $75,000 annually.

Senior-Level CPA

With a few years of experience, senior-level CPAs take on more significant responsibilities, such as financial reporting, analysis, and overseeing junior staff. Senior CPAs are typically compensated in the range of $75,000 to $100,000 per year.

Manager or Director With a CPA

As CPAs climb the corporate ladder and assume managerial or directorial roles, their earning potential increases significantly. Managers and directors with a CPA license can earn between $100,000 to $150,000 or more annually, depending on the organization's size and industry.

Accountant: Salaries By State

Here you can find the salary ranges standard for accountants and auditors in your state (50th – 90th percentile), as reported for May 2022 (BLS shows overall averages for all accounting professions, including all education and credential levels):

• Alabama: $64,040 – $110,200 (approximately 18,170 accountants and auditors)
• Alaska: $75,800 – $115,190 (approximately 2,480 accountants and auditors)
• Arizona: $68,680 – $115,830 (approximately 23,280 accountants and auditors)
• Arkansas: $63,220 – $107,030 (approximately 7,040 accountants and auditors)
• California: $79,030 – $135,410 (approximately 150,050 accountants and auditors)
• Colorado: $76,720 – $133,250 (approximately 36,470 accountants and auditors)
• Connecticut: $79,210 – $125,580 (approximately 15,870 accountants and auditors)
• Delaware: $76,950 – $122,930 (approximately 5,010 accountants and auditors)
• District of Columbia: $103,410 – $161,140 (approximately 10,050 accountants and auditors)
• Florida: $65,100 – $118,600 (approximately 73,690 accountants and auditors)
• Georgia: $73,940 – $133,410 (approximately 34,800 accountants and auditors)
• Hawaii: $61,640 – $96,710 (approximately 4,680 accountants and auditors)
• Idaho: $61,650 – $106,760 (approximately 4,130 accountants and auditors)
• Illinois: $71,270 – $118,520 (approximately 49,590 accountants and auditors)
• Indiana: $66,480 – $111,010 (approximately 21,470 accountants and auditors)
• Iowa: $64,720 – $105,570 (approximately 10,340 accountants and auditors)
• Kansas: $63,560 – $107,530 (approximately 12,830 accountants and auditors)
• Kentucky: $62,550 – $116,280 (approximately 11,380 accountants and auditors)
• Louisiana: $62,190 – $102,190 (approximately 12,440 accountants and auditors)
• Maine: $64,300 – $106,330 (approximately 4,720 accountants and auditors)
• Maryland: $76,250 – $129,940 (approximately 23,710 accountants and auditors)
• Massachusetts: $81,190 – $136,490 (approximately 34,710 accountants and auditors)
• Michigan: $68,980 – $115,150 (approximately 34,020 accountants and auditors)
• Minnesota: $70,390 – $109,800 (approximately 23,810 accountants and auditors)
• Mississippi: $60,000 – $105,230 (approximately 5,800 accountants and auditors)
• Missouri: $64,850 – $110,920 (approximately 26,990 accountants and auditors)
• Montana: $63,240 – $106,830 (approximately 3,460 accountants and auditors)
• Nebraska: $63,830 – $106,970 (approximately 7,990 accountants and auditors)
• Nevada: $63,970 – $100,230 (approximately 7,720 accountants and auditors)
• New Hampshire: $69,280 – $108,020 (approximately 5,390 accountants and auditors)
• New Jersey: $88,370 – $146,380 (approximately 39,060 accountants and auditors)
• New Mexico: $61,290 – $102,290 (approximately 6,430 accountants and auditors)
• New York: $89,210 – $162,900 (approximately 112,360 accountants and auditors)
• North Carolina: $72,900 – $126,000 (approximately 35,890 accountants and auditors)
• North Dakota: $61,930 – $101,060 (approximately 4,210 accountants and auditors)
• Ohio: $67,860 – $113,320 (approximately 46,880 accountants and auditors)
• Oklahoma: $66,860 – $117,630 (approximately 14,420 accountants and auditors)
• Oregon: $71,790 – $111,410 (approximately 12,720 accountants and auditors)
• Pennsylvania: $70,420 – $120,200 (approximately 50,240 accountants and auditors)
• Rhode Island: $79,380 – $129,640 (approximately 5,050 accountants and auditors)
• South Carolina: $60,950 – $105,400 (approximately 15,410 accountants and auditors)
• South Dakota: $64,940 – $97,520 (approximately 4,940 accountants and auditors)
• Tennessee: $64,120 – $104,190 (approximately 18,960 accountants and auditors)
• Texas: $73,420 – $123,770 (approximately 109,470 accountants and auditors)
• Utah: $64,100 – $109,040 (approximately 11,210 accountants and auditors)
• Vermont: $66,940 – $105,140 (approximately 2,260 accountants and auditors)
• Virginia: $79,670 – $135,700 (approximately 43,550 accountants and auditors)
• Washington: $77,190 – $127,050 (approximately 30,620 accountants and auditors)
• West Virginia: $63,390 – $103,630 (approximately 4,380 accountants and auditors)
• Wisconsin: $67,840 – $105,780 (approximately 21,990 accountants and auditors)
• Wyoming: $62,580 – $101,900 (approximately 1,940 accountants and auditors)

Best-Paying Cities for Accountants

In addition to the role and qualifications, the location where an accountant works can also impact their salary. Certain cities offer higher salaries due to factors like the cost of living and the demand for accounting professionals.

1. New York City, New York

As one of the world's financial capitals, New York City provides lucrative opportunities for accountants. With its numerous financial institutions and diverse industries, accountants in NYC can earn salaries that are approximately 20% higher than the national average.

2. San Francisco, California

The tech industry and financial sector in San Francisco contribute to higher salaries for accountants. The cost of living is higher, but so are the earning prospects, with salaries around 15% above the national average.

3. Chicago, Illinois

Chicago's bustling business environment and large corporate presence result in competitive salaries for accountants, roughly 10% above the national average.

4. Houston, Texas

Houston's thriving energy sector and diverse economy offer accountants attractive earning potential. Salaries in Houston tend to be about 5% higher than the national average.

5. Atlanta, Georgia

In Atlanta, accountants benefit from a lower cost of living compared to some major cities, while still enjoying salaries that are about 5% higher than the national average.

Conclusion

In conclusion, the accounting salary can vary significantly based on factors like job role, level of experience, and location. Entry-level positions such as bookkeepers, tax preparers, and payroll specialists offer respectable starting salaries, while CPAs and senior-level accountants earn significantly more. Location also plays a significant role, with major financial hubs typically offering higher salaries. Whether you're just starting your accounting career or looking to advance to higher positions, the accounting field can be financially rewarding and offers ample opportunities for growth.

Frequently Asked Questions (FAQs) - Accounting Salary Guide