Accountants are a vital part of any business, ensuring that financial records are accurate and up-to-date. As such, they are in high demand across a variety of industries, and their salaries reflect that demand. The median salary for accountants in the United States is $73,560, according to the Bureau of Labor Statistics (BLS). However, this number can vary widely depending on factors such as location, level of education, and years of experience.
In general, accountants with more education and experience tend to earn higher salaries. For example, those with a bachelor’s degree in accounting or business administration may start out earning around $50,000 per year, while those with a master’s degree or CPA certification can earn upwards of $100,000 per year. Additionally, accountants who work in high-cost-of-living areas such as New York or California may earn more than those in other states.
How Much Do Accountants Make?
According to the Bureau of Labor Statistics (BLS), the median annual salary for accountants and auditors in the United States is $73,560. However, salaries can range from $44,480 to $124,450 depending on the accountant’s level of experience, employer, and location.
Education and certification can play a significant role in an accountant’s salary. A Certified Public Accountant (CPA) designation, for example, can increase an accountant’s earning potential by as much as 10-15%. Additionally, a bachelor’s or master’s degree in accounting or finance can lead to higher salaries and more job opportunities.
Some of the highest-paying industries for accountants include information technology, insurance, real estate, and manufacturing. In contrast, bookkeeping and payroll services tend to have lower salaries.
Location is another critical factor in an accountant’s salary. States like New York, California, New Jersey, and Massachusetts tend to have higher median salaries due to their higher costs of living and concentration of businesses. Metropolitan areas also tend to have higher salaries than rural areas.
Factors That Affect Accountant Salaries
Accountants are in high demand, and their salaries can vary based on several factors. Here are some of the key factors that can affect accountant salaries:
Education and Certification
Education and certification play a significant role in determining an accountant’s salary. A bachelor’s degree in accounting or finance is typically the minimum requirement for entry-level positions. However, earning a master’s degree or becoming a Certified Public Accountant (CPA) can increase an accountant’s earning potential. According to the Bureau of Labor Statistics (BLS), the median salary for accountants and auditors in 2020 was $73,560, but CPAs typically earn higher salaries.
Experience
Experience is another critical factor that can impact an accountant’s salary. As accountants gain more experience in the field, they become more valuable to their employers. Experienced accountants with a proven track record of success can command higher salaries than those who are just starting in the profession.
Location
Location is a significant factor that can affect an accountant’s salary. Salaries can vary significantly from state to state and even from city to city. For example, accountants in New York and California typically earn higher salaries than those in other states due to the higher cost of living in those areas.
Industry and Employer
The industry and employer an accountant works for can also impact their salary. Accountants who work for large companies or accounting firms, such as Ernst & Young (EY), typically earn higher salaries than those who work for smaller companies. Additionally, accountants who work in industries such as manufacturing, information technology, law, insurance, or real estate may earn higher salaries than those who work in bookkeeping or payroll.
Skills and Specializations
Accountants with specialized skills or certifications, such as tax or payroll expertise, may earn higher salaries than those with more general accounting knowledge. Additionally, accountants who possess strong analytical, communication, and problem-solving skills may be more valuable to their employers and, therefore, command higher salaries.
Accountant Salaries by State
Accounting is a lucrative career path for many individuals. Accountants are responsible for managing financial records, ensuring compliance with tax laws, and providing financial advice to clients. The salary of an accountant varies depending on the state, with some states offering higher salaries than others.
Highest Paying States for Accountants
According to the Bureau of Labor Statistics, the highest paying states for accountants are New York, California, New Jersey, and Massachusetts. The average annual salary for accountants in these states ranges from $89,000 to $97,000.
In New York, accountants earn an average annual salary of $97,650. The metropolitan areas with the highest salaries for accountants in New York are the New York-Newark-Jersey City metropolitan area and the Albany-Schenectady-Troy metropolitan area.
In California, accountants earn an average annual salary of $92,910. The metropolitan areas with the highest salaries for accountants in California are the San Francisco-Oakland-Hayward metropolitan area and the San Jose-Sunnyvale-Santa Clara metropolitan area.
In New Jersey, accountants earn an average annual salary of $91,400. The metropolitan areas with the highest salaries for accountants in New Jersey are the Trenton metropolitan area and the Newark metropolitan area.
In Massachusetts, accountants earn an average annual salary of $89,440. The metropolitan areas with the highest salaries for accountants in Massachusetts are the Boston-Cambridge-Nashua metropolitan area and the Worcester metropolitan area.
Other States
Other states that offer high salaries for accountants include Virginia, Maryland, and Connecticut. Accountants in these states earn an average annual salary of $80,000 to $85,000.
In Virginia, accountants earn an average annual salary of $85,640. The metropolitan areas with the highest salaries for accountants in Virginia are the Washington-Arlington-Alexandria metropolitan area and the Richmond metropolitan area.
In Maryland, accountants earn an average annual salary of $83,670. The metropolitan areas with the highest salaries for accountants in Maryland are the Baltimore-Columbia-Towson metropolitan area and the Washington-Arlington-Alexandria metropolitan area.
In Connecticut, accountants earn an average annual salary of $80,950. The metropolitan areas with the highest salaries for accountants in Connecticut are the Bridgeport-Stamford-Norwalk metropolitan area and the Hartford-West Hartford-East Hartford metropolitan area.
Frequently Asked Questions
What is the average salary for accountants?
The average salary for accountants in the United States is around $70,000 per year. However, this can vary depending on factors such as location, experience, and education level.
What is the starting salary for entry-level accountants?
The starting salary for entry-level accountants typically ranges from $45,000 to $55,000 per year. However, this can vary depending on factors such as location and the size of the company.
What is the salary range for accountants with a bachelor’s degree?
The salary range for accountants with a bachelor’s degree typically ranges from $50,000 to $90,000 per year. However, this can vary depending on factors such as location, experience, and industry.
How much can accountants with a master’s degree expect to earn?
Accountants with a master’s degree can expect to earn a higher salary than those with just a bachelor’s degree. The salary range for accountants with a master’s degree typically ranges from $60,000 to $120,000 per year, depending on factors such as location and industry.
What is the salary range for accountants with an associate’s degree?
The salary range for accountants with an associate’s degree typically ranges from $35,000 to $60,000 per year. However, this can vary depending on factors such as location and experience.
Which states offer the highest salaries for accountants?
States such as California, New York, and Texas offer some of the highest salaries for accountants in the United States. However, it is important to consider the cost of living in these states when evaluating salary offers.