Are you curious about what it takes to become a CPA and how much you could earn?
You’re in the right place.
With over 672,000 CPAs in the United States, the financial and professional rewards are significant. Becoming a Certified Public Accountant can lead to a lucrative and fulfilling career, but how much do CPAs actually make?
Let’s dive into the details of CPA salaries in the accounting profession, the factors that influence them, and the career opportunities that await.
Key Takeaways
- Diverse Salary Range: CPA salaries (and average salary) vary widely based on factors like experience, education, and geographic location.
- Industry Impact: The industry in which a CPA works significantly influences salary, with top-paying sectors including finance, insurance, and management consulting.
- Geographic Influence: Major cities like New York and San Francisco offer higher salaries due to greater demand and higher living costs.
- Job Growth: The CPA job market is projected to grow by 4% from 2022 to 2032, creating approximately 61,700 job openings annually, driven by globalization and regulatory changes.
Average CPA Salary
CPAs generally make an average annual salary of approximately $122,229, according to Robert Half. However, this figure can vary widely based on factors like experience, location, and industry.
Let’s look at each of these in detail.
Factors Influencing CPA Salaries
Experience and Education
Starting salaries for entry-level accountants typically begin around $45,000, but can increase significantly with additional education and experience. Experienced CPAs, especially those with a master’s degree or specialized certifications like Certified Fraud Examiner, can command salaries exceeding $120,000. Getting CPA licensure and ongoing professional development are crucial for salary growth.
Industry
CPA salary data shows working in the federal government or public accounting firms generally earn more than those in the private sector. The highest-paying industries for CPAs include finance, insurance, and management consulting.
Geographic Location
CPAs in major metropolitan areas such as New York, San Francisco, and Chicago generally enjoy higher average salaries due to the elevated cost of living and strong demand for their expertise. States like California, New York, and Texas also offer higher salary ranges compared to other regions.
Comparing CPA Salaries with Other Accounting Positions
Not all accountants are CPAs, and the average accountant’s salary can be lower. Obtaining a CPA license is a significant investment, but it can lead to substantial returns. The process involves passing the CPA exam by studying with a top CPA prep course, meeting ethical standards, and completing general accounting work experience.
Highest Paid Positions for CPAs
CPAs can achieve substantial earnings, especially in high-ranking roles. Here are some of the top-paying positions:
Chief Financial Officer (CFO) – Corporate Accounting
- Entry-Level: Starting salaries around $176,500.
- Median: Mid-career professionals earn approximately $265,000.
- Experienced: Seasoned CFOs can make up to $300,750.
Vice President of Finance
- Entry-Level: Early career VPs can expect salaries around $143,750.
- Median: The median salary is about $203,750.
- Experienced: At the high end, experienced VPs can earn up to $246,500.
Corporate Controller
- Entry-Level: New corporate controllers start at about $111,000.
- Median: The median salary for this position is $160,250.
- Experienced: Experienced controllers can earn up to $210,750.
Director of Financial Reporting
- Entry-Level: Entry-level positions start around $122,500.
- Median: The median salary is $154,000.
- Experienced: Seasoned directors can earn up to $177,000.
Forensic Accountant
- Entry-Level: Forensic accountants begin with salaries around $83,250.
- Median: The median salary is $103,750.
- Experienced: Experienced professionals in this field can earn up to $119,750.
These positions highlight the lucrative opportunities available to CPAs as they advance in their careers, underscoring the financial benefits of attaining CPA certification.
Highest Paying Industries for CPAs
CPAs working in finance and insurance enjoy some of the highest average accountant salaries. These sectors value not only accounting services but the expertise and ethical standards CPAs bring, rewarding them with higher salaries and job stability.
| Industry | Average Salary |
|---|---|
| Finance | $85,000 |
| Insurance | $82,000 |
| Management Consulting | $90,000 |
| Federal Government | $88,000 |
| Public Accounting | $79,000 |
Job Market and Projected Growth
The job market for CPAs remains robust, with projected job growth expected to be strong. According to the Bureau of Labor Statistics (BLS), employment of accountants and auditors is projected to grow 4% from 2022 to 2032, about as fast as the average for all occupations. This growth is expected to result in about 61,700 job openings each year, on average, over the decade. It should also boost the national average salary for CPA candidates.
The steady increase in demand for accounting professionals is driven by globalization, an increasingly complex regulatory environment, and the need for companies to manage their financial records accurately and efficiently.
Conclusion
Becoming a Certified Public Accountant is a challenging yet rewarding career choice. CPAs typically earn 56.7% more than non-certified accountants, with a median salary of around $122,229. High-paying sectors include finance, insurance, and management consulting, and major cities like New York and San Francisco offer higher salaries. With higher salaries, job security, and respected professional status, obtaining a CPA certification is a valuable investment in your future.
FAQs
A CPA license typically leads to higher salaries and better job opportunities compared to non-certified accountants.
Finance, insurance, and management consulting are among the highest-paying industries for CPAs.
Factors like experience, additional certifications, and geographic location can significantly increase a CPA’s salary.
CPAs in major cities or high-cost living areas like San Francisco tend to earn more due to higher demand and cost of living.
Private accounting focuses on managing financial transactions and payroll services within a specific company, ensuring accurate financial reporting and compliance. Forensic accounting, on the other hand, involves investigating financial transactions for legal purposes, often uncovering fraud or financial discrepancies.
It typically takes 4-6 years to get your bachelor’s degree and educational requirements, another year for work experience, plus licensing. In total, it could take about 6-10 years to become a CPA.
