According to industry stats, the average CPA salary in the US is $122,000, but it also varies depending on your years of experience, firm size, and industry.
That’s the best part about becoming a CPA. Not only do you get more career opportunities in financial services and respect from your colleagues, but you also get a pretty sweet bump in your salary and compensation package as well.
A number of factors affect the overall salary range of accountants and CPAs, so it’s difficult to talk about the national average annual salary without considering the numbers and statistics.
Let’s take a look at each of these factors and see what you can expect to make as an entry-level accountant, an inexperienced CPA, and an experienced CPA.
Key Takeaways
- National Average CPA Salary: The average salary for a CPA in the United States is approximately $70,000 per year. This figure can vary based on location, industry, and experience level.
- Salary Increases with Experience: Entry-level CPAs typically earn less, but salaries can rise significantly with experience.
- Industry Variations: Salaries for CPAs can vary widely depending on the industry. CPAs working in the finance and insurance sectors tend to earn higher salaries compared to those in government or education.
- Geographic Differences: Location plays a significant role in determining CPA salaries. States like New York and California offer higher average salaries compared to states like Mississippi or Arkansas.
- Additional Certifications Boost Earnings: CPAs who obtain additional certifications, such as Certified Management Accountant (CMA) or Certified Internal Auditor (CIA), often see an increase in their salary potential.
Factors that Affect CPA Salaries
Before we can answer the question of how much you can expect to make as an accountant, we need to look at the four main factors that affect accountant salaries.
Experience Level
This is probably the most obvious factor because it’s prevalent in every industry. The longer you work somewhere and the more experience you get as an accounting professional, the more you are able to do and command compensation. The accounting profession is no different.
There is a huge pay discrepancy between entry-level accountants and experienced CPAs and partners.
Industry
Not all accountants are in the same job market. Some CPAs work as tax accountants, while others are auditors and assurance professionals. All of these professionals fall under the umbrella of public accounting.
Some CPAs choose to work in private or corporate accounting as internal accountants, auditors, and tax experts for a single company. These companies vary in size and in industry.
Public and corporate accounting salaries are much different. Jobs within each of these industries also provide a wide range of salaries as well. For instance, a tax accountant in public accounting can expect to make a different amount than an auditor working for the same firm with the same level of experience.
Company Size
The last main factor is company size. Typically, larger companies pay better than smaller companies because they have more resources and more opportunities for employees. Thus, you can assume that the larger the CPA firm or company, the more the accountants and CPAs working there are getting paid.
Geographical Location
The region you work in will always dictate your pay to some degree. An entry-level accountant will get paid more in New York City than his or her counterpart in Boise, ID. Here are some current salary trends by location:
- San Francisco, California: $104,616
- New York City, New York: $102,190
- Washington, D.C.: $95,353
- Houston, Texas: $86,700
- Trenton, New Jersey: $86,585
- Atlanta, Georgia: $81,384
- Chicago, Illinois: $78,166
- Miami, Florida: $73,571
Get Discounts On CPA Review Courses!
Take $1,600 Off UWorld CPA Elite-Unlimited Course
CPA Salaries and Experience
Since Certified Public Accountant Salaries, experience plays a crucial role in determining CPA salaries, with salary percentiles offering a clear view of how earnings vary based on the level of experience and qualifications. Here’s an overview of what each percentile represents:
- Entry-Level (25th Percentile): Reflects the lower end of the salary range, typically for those new to the role or with minimal experience.
- Median (50th Percentile): Represents the middle of the salary range, indicating the typical salary for individuals with average experience and qualifications.
- Experienced (75th Percentile): Indicates the higher end of the salary range, often for those with substantial experience and valuable qualifications.
CPA Salaries by Position
Chief Financial Officer (CFO) – Corporate Accounting
- Entry-Level: $176,500
- Median: $265,000
- Experienced: $300,750
Vice President of Finance
- Entry-Level: $143,750
- Median: $203,750
- Experienced: $246,500
Corporate Controller
- Entry-Level: $111,000
- Median: $160,250
- Experienced: $210,750
Financial Project Manager
- Median: $134,750
- Experienced: $163,500
Forensic Accountant
- Entry-Level: $83,250
- Median: $103,750
- Experienced: $119,750
By examining these salary ranges, it becomes evident that higher experience and qualifications can significantly impact earning potential in the accounting field, with experienced professionals earning substantially more than their entry-level counterparts.
Non-Certified Accountant Salaries in Corporate Accounting
As you can imagine, non-certified accountants don’t make as much as their certified counterparts. They are typically limited to careers outside of public accounting since CPA firms don’t hire accountants past a certain level without being certified.
According to salary stats, they usually have a starting salary of $71,000 and can earn as much as $91,000 depending on the size of the company they work for and the industry they work in.
As you can see, there is a huge difference between non-certified accountants and licensed CPA salaries. On average, CPAs earn 10% more than their non-certified counterparts. If you are thinking about becoming an accountant, it’s definitely worth becoming a CPA.
One of the first steps to becoming a CPA is to get a proper CPA review course and start studying for the exam. I reviewed all the top CPA courses that are out there right now, so you can easily find one that matches your learning style and works for your study process and budget.
Conclusion
The salary and compensation for CPAs vary significantly based on factors such as experience, industry, and location. On average, CPAs in the United States earn around $70,000 per year, with the potential for substantial increases as they gain experience and additional certifications. Industry and geographic location also play crucial roles, with higher salaries often found in finance and insurance sectors and in states like New York and California. As CPAs advance in their careers, they can expect their earning potential to grow, making this a lucrative and rewarding profession.
FAQs
Several factors influence CPA salaries, including experience, industry, geographic location, and additional certifications. More experienced CPAs and those with specialized certifications or working in high-paying industries and locations typically earn higher salaries.
Location significantly impacts CPA salaries. States like New York and California offer higher average salaries due to higher living costs and demand for CPAs, whereas states like Mississippi or Arkansas have lower average salaries.
Yes, CPAs who obtain additional certifications, such as Certified Management Accountant (CMA) or Certified Internal Auditor (CIA), often see an increase in their salary potential due to the added expertise and qualifications these certifications provide.
The average starting salary for an entry-level CPA is typically lower than the national average, often around $70,000 per year. However, this can vary based on the industry and location.
Experience greatly impacts CPA salaries, with more experienced CPAs earning significantly higher salaries. CPAs with experience can earn upwards of $250,000 annually, reflecting their extensive knowledge and expertise in the field.
CPA and MBA holders both see strong salary potential, but it depends on the career path. CPAs often earn more in accounting and finance roles early on, while MBA graduates may see faster salary growth over time in broader business and management positions.
CPA and CA are both respected accounting credentials, but they differ by region and focus. CPA is a U.S.-based certification centered on American accounting and tax laws, while CA is used in countries like Canada, the UK, India, and Australia, with a focus on international standards and auditing.
