Accountant Salary
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There are over a million different accounting jobs in the US today, with most of these professionals working for accounting firms doing bookkeeping, tax preparation, or other related jobs. The second largest group of accountants surveyed worked for the government or the IRS. |
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Accountants Salary Range
In 2006, around 10% of all accountants were self-employed, which is a fairly healthy percentage – especially when compared to other professions. Other accountants – mostly those with their doctorate degrees – worked as university professors or economic analysts and writers.
Between 2006 and 2016, the accounting world is expected to grow by around 18%. This is faster than many other industries, which means that future accountants will have a fair number of job opportunities, especially if they hold a bachelor’s degree and their CPA designation. In addition, current accountants will find new positions to advance into, although they'll need to continue their education as new accounting laws and regulations come into play.
Many of the new jobs in the accounting world will be created due to economic growth. As more new businesses are created, a larger number of accountants and auditors will be required. Existing companies are likely to expand – especially into foreign markets – requiring accountants to take on larger amounts of work and learn more about international trade and mergers. In fact, today’s accounting students are focusing more and more on how accounting principles works in an international setting. This information will be invaluable for the next generation of accountants.
The Sarbanes-Oxley Act of 2002 requires that companies of a certain size conduct internal audits and enact a number of internal checks and balances to make certain there are fewer financial scandals and embezzlement cases. This has lead to a number of new positions for internal auditors. Outside CPAs are also often hired on as consultants by large companies to perform audits, since they have absolutely no connection to the company and can act as neutral, unbiased third parties.
Public accountants, especially those with their CPAs, can expect to earn around $50,000/year. The smallest accountant salaries reported in 2006 were around $35,000/year, so even accountant starting salary estimates are at a decent level. On average, accountants with a master’s degree started at about $3,000/year more in annual salary than those with a bachelor’s.
Accountants who handled tax preparation, bookkeeping, and performed payroll services actually made, on average, more money than many management accountants or accountants who worked for the government. In fact, accountants who worked for a state agency routinely ranked the lowest in average salary. Some accountants in federal positions started at under $30,000/year, which is significantly lower than accountants who worked for private companies. However, higher ranked federal accountants and auditors often made over $80,000/year, so don't dismiss a government position out of hand.
In addition to an accountants salary compensation, accountants generally receive medical and health benefits, a retirement plan, and annual leave. Although these benefits aren't figured into the average salary of an accountant, they should be a factor in the job you choose, since independent health insurance premiums can cost as much as $500/month if you aren't covered by your company. In addition, many tax preparation accountants are also able to take on extra projects or extra time off during the slow season, which can be a definite perk if you like to travel.
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