A 2020 LinkedIn survey positioned certified public accountants (CPAs) in sixth place among the many most in-demand jobs. CPAs also held the top spot for the fastest job growth. The demand for CPAs continues to grow along with the financial system and the want to preserve monetary data.
This page takes an in-depth look at job prospects and earning potential for CPAs primarily based on training, location, and experience level. Keep reading to learn more about this rising career subject.
How Much Does a CPA Make?
According to information from the Bureau of Labor Statistics (BLS), accountants and auditors earn a median salary of $73,560. Education, experience, and site can all impression earning potential for CPAs.
However, this career offers an upward incomes development for professionals who keep in the subject and acquire more expertise, making now a good time to get began in the industry.
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Salary by Education
Although all CPAs are accountants, not all accountants maintain CPA licensure. CPA requirements differ by state but to earn licensure as a CPA, candidates should complete a minimal of a hundred and fifty credits prior to sitting for the exam administered by the American Institute of Certified Public Accountants (AICPA).
Generally, bachelor’s levels require around a hundred and twenty credit. CPA candidates should earn one other 30 credit hours. Some aspiring CPAs full mixed bachelor’s/master’s applications to meet this requirement. Others complete this requirement by way of extra undergraduate credits and a few graduate courses.
Completing a master’s degree may increase your earning potential in comparability with just a bachelor’s. The desk under breaks down the typical salary for accountants with totally different schooling levels. Keep in mind this table consists of all accountants, not solely CPAs.
Salary by Experience
While schooling helps people get hold of CPA licensure and better salaries, expertise additionally impacts earnings. According to knowledge from PayScale, the average salary for CPAs will increase steadily with more expertise.
Early profession (one to four years in the field) CPAs earn a median of $60,000 per year. In contrast, late profession (more than 20 years experience) CPAs earn a median of $98,000 per year—a stark enhance.
Additionally, some employers could provide CPAs performance-based bonuses and other financial benefits.
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Salary by Location
Geographic location also impacts incomes potential for CPAs and accountants. Some states might provide greater common salaries because of factors like increased demand, bigger population, and higher costs of dwelling.
The BLS highlights the five top-paying states for accountants and auditors. Washington, D.C. offers the best common salary for accounting professionals at $110,one hundred forty. California rounds out the highest five with a median accountant salary of $88,one hundred thirty.
The states under feature dense populations and huge, urban centers, which can contribute to an increased demand for accountants and CPAs.
Top-Paying States for Accountants and Auditors, Source: BLSTop-Paying Metropolitan Areas for Accountants and Auditors, Metropolitan AreaNumber of Accountants EmployedAverage Annual SalarySalinas, CA690$111,680New York-Newark-Jersey City, NY-NJ-PA119,910$105,720Midland, TX1,610$103,120San Jose-Sunnyvale-Santa Clara, CA15,360$102,920San Francisco-Oakland-Hayward, CA24,510$101,090Source: BLSWhere Should I Work as a CPA?
Jobs for accountants proceed to grow on a national stage. However, some states and metropolitan areas provide higher common salaries and extra job openings than others. Certain states may also see the next demand or faster job progress for CPAs.
Urban facilities and cities with greater populations usually offer extra job opportunities for accountants in response to greater demand from businesses in search of CPA services. The tables in the following sections map out one of the best areas for prospective CPAs to look for jobs primarily based on common salary, the number of jobs out there, and projected job progress.
The data featured on this page consists of numbers from general accounting and auditing jobs plus CPA positions.
Best Areas
CPAs and general accountants will find that just about each state offers job opportunity and growth. However, certain states—and regions within every state—may offer more job openings, quicker growth, and higher earning potential than others.
CPA licensure affords professionals the credentials they should provide accounting providers in a extensive variety of industries. Nearly every sort of enterprise needs the guidance of an expert accountant to stability books, guarantee monetary legal guidelines and policies are adopted, set up and distribute payroll, and file and pay taxes.
The skills and data CPAs hold makes them invaluable, dynamic staff. They can provide accounting services in numerous capacities, making them extremely employable regardless of their geographic location.
The tables beneath define one of the best states and metropolitan areas for potential CPAs based mostly on the variety of job openings every year, projected job progress for each area, and average salary.
Texas includes a high variety of accountants employed, a beneficiant common salary, and a high rate of projected job development. The Dallas-Fort Worth-Arlington metro space employs over 37,000 accountants with a median salary of $83,850, significantly higher than the average wage for all positions in that space.
Rural areas offer less opportunities for CPAs than main cities. However some of the nonmetropolitan areas with the highest employment rates for accountants embrace Kansas, northeastern and northwestern Ohio, and northern Texas.
Top-Employing States for Accountants and Auditors, StateNumber of Accountants EmployedAverage Annual SalaryCalifornia150,050$88,130New York112,360$101,440Texas109,470$80,170Florida73,690$74,960Pennsylvania50,240$77,810Source: BLSStates With the Greatest Projected Increase in Employment for Accountants and Auditors, StatePercent Projected Change, Average Annual OpeningsGreatest Projected Percentage IncreaseUtah31.1%1,590Georgia21%4,880Colorado20%5,000Texas18.8%15,480Nevada18.1%1,130Most Projected Average Annual OpeningsCalifornia7.7%17,650Texas18.8%15,480New York12.7%13,550Florida13.9%9,040Pennsylvania6%5,870Source: Projections CentralTop-Employing Metropolitan Areas for Accountants and Auditors, Metropolitan AreaNumber of Accountants and Auditors EmployedAverage Annual SalaryNew York-Newark-Jersey City,NY-NJ-PA119,910$105,720Los Angeles-Long Beach-Anaheim, CA61,740$83,660Chicago-Naperville-Elgin, IL-IN-WI42,080$78,640Washington-Arlington-Alexandria, DC-VA-MD-WV41,890$98,030Dallas-Fort Worth-Arlington, TX37,040$83,850Source: BLS Top Online Master’s
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Best Industries
Regardless of the trade, corporations need expert accountants to help run their business in adherence to local monetary laws and regulations. A variety of industries make use of CPAs in different capacities.
The tables below detail the top-paying and top-employing industries for accountants and auditors. Some of the highest paid CPAs work for the federal authorities, whereas most accounting professionals work generally accounting, tax preparation, bookkeeping, and payroll services.
A massive variety of accounting professionals additionally serve in management roles for companies and enterprises, making that trade the second highest employing space for accountants.
The industry an accountant works in can influence salary and earning potential, day-to-day job duties, and any opportunities for upward mobility. Explore the tables below to study more about which industries employ probably the most CPAs, and which sectors offer the highest common salaries.
Top-Paying Industries for Accountants and Auditors, IndustryNumber of Accountants and Auditors EmployedAverage Annual SalaryComputer and Peripheral Equipment Manufacturing3,910$112,680Federal Executive Branch22,160$105,980School and Employee Bus Transportation120$105,060Securities, Commodity Contracts, and Other Financial Investments and Related Activities31,450$102,020Other Information Services4,660$99,810Source: BLSTop-Employing Industries for Accountants and Auditors, IndustryNumber of Accountants and Auditors EmployedAverage Annual SalaryAccounting, Tax Preparation, Bookkeeping, and Payroll Services339,020$85,050Management of Companies and Enterprises97,250$82,770Local Government, excluding faculties and hospitals46,060$71,420State Government, excluding colleges and hospitals41,780$68,460Real Estate36,180$78,370Source: BLSQuestions About CPA and Accountant Salary
What is a CPA beginning salary?
According to knowledge from PayScale, CPAs in their first year of working in the subject earn an average salary of $54,000 as of October 2021. This common increases to $60,000 within the first 4 years of working within the field.
What are the highest-paying public accounting jobs?
According to BLS information, industries offering the highest-paying jobs for CPAs embody pc and peripheral gear manufacturing, the federal executive branch, and college and worker bus transportation.
Where is one of the best state to work as a public accountant?
According to BLS data, Texas presents a few of the highest employment charges and one of many highest common salaries for accounting professionals. However, prospective accountants ought to contemplate different components like quality of life and price of residing.
What is one of the best trade to work in as a public accountant?
Accounting, tax preparation, bookkeeping and payroll providers employ the most important variety of accounting professionals, offering a mean salary of $85,050 in 2020.
Does having a CPA assure a job?
No credential ensures a job in any trade. However, earning a CPA license might help potential accountants pursue CPA positions, enhance competition within the job market, and open doorways to extra opportunities.
Reviewed by:
Lizzette Matos, CPA
Lizzette Matos is a licensed public accountant in New York state. She earned a bachelor of science in finance and accounting from New York University. Matos started her career at Ernst & Young, where she audited a various set of companies, primarily in shopper products and media and leisure. She has worked within the private industry as an accountant for regulation companies and ITOCHU Corporation, an international conglomerate that manages over 20 subsidiaries and associates. Matos stays updated on modifications within the accounting business through educational courses.
Lizzette Matos is a paid member of the Red Ventures Education freelance evaluation network.
Page final reviewed November four, Featured Image: Jose Luis Pelaez / Stone / Getty Images