The CPA salary is about 10% to 15% higher than the salary of an accountant who does not hold a similar certification. There are many factors why the accounting salary between a certified public accountant and a non-licensed accountant is quite different.
CPA Salary and Benefits of Having a CPA
Jobs that require high-level accounting work and senior financial jobs usually require a CPA cert. In addition, most employees working at the supervisory, managerial or director level are required by companies to have the CPA cert.
Hence, you can see that there are a lot of people who go for the CPA qualification to comply with job requirements of the companies that they intend to work for. Some also hope to attain the CPA qualification so that they could get a raise or a promotion. Indeed, passing the CPA exam will open up a lot more career opportunities. Generally, certified public accountants who work at public accounting firms are paid higher. Even the new employees are able to get high CPA salary. Of course, with a higher CPA salary, one is expecting to have a heavier work task and a more demanding job schedule. In addition, he or she is expected to work for longer hours and go for extensive travelling to complete various job tasks.
Another factor influencing CPA salary is city of residence & state. Different states and cities have different requirements for licensure and they offer different pay rates for CPAs as well. In the United States, a general requirement is having a bachelor degree in business (BA) with a major in Accounting, Finance or Business Administration. After this degree is completed, the individual needs to take the examination for certified public accountants.
Rules vary from state to state, although the same exact test is carried out throughout the United States. It is a known fact that passing the licensure exam can be quite arduous. There are many who take the examinations repeatedly and failed. A thorough self-study and going through a CPA review material will be extremely helpful in passing the exam.
On the other hand, there might be additional requirements demanded by some states for aspiring CPAs such as passing an ethics exam. Most states in the U.S. also require the accounting graduates to complete on the job training with supervision from a licensed CPA before a license is granted. The detailed requirements of states for a CPA licensure can be seen via a state’s Board of Accountancy. When all requirements to become a certified public accountant are completed, an aspirant needs to attain Continuing Professional Educations Credits (CPE) to remain licensed. CPE can be obtained by going to classes or courses.
CPA Salary: Job Prospects
In 2018, accounting jobs are forecasted to increase by 22%. This data is drawn from a study conducted by the Bureau of Labor Statistics. The increase in jobs will translate to an increase in the average salary of a CPA. The starting salary of a CPA varies according to a number of variables such as educational background, training or certifications and region, among others. Accounting jobs usually have strict or detailed requirements because of very specific job functions. Many CPA graduates choose to work in public accounting firms to start their accounting careers. Beginner CPAs with no prior experience can expect to earn an average of $51,500.
CPA Salary Statistics
The following is a statistical data on the average CPA salary as categorized by years of experience.
Annual CPA salary for less than one year experience: from $30, 439 to $59,989
Annual CPA salary for one to four years of experience: from $37,854 to $64,920
Annual CPA salary for five to nine years of experience: from $43,550 to $82,558
Annual CPA salary for ten to nineteen years of experience: from $48,262 to $106,533
Annual CPA salary for twenty years or more: from $48, 676 to $147,882
The following is another statistic provided by Payscale, Inc., which show the national annual salary for employees with a Certified Public Accountant (CPA) Certification or license. The data cited here are updated since November 20, 2011.
Certified Public Accountant (CPA) – from $40,004 to $89,834
Senior Accountant – from $48,007 to $76,958
Staff Accountant – from $37,672 to $57,936
Financial Controller – from $59,915 to $137,516
Chief Financial Officer (CFO) – from $76,553 to $219,911
In some popular schools in the United States, employees with a CPA certification earn an estimated annual income as follows:
University of Illinois at Urbana-Champaign (UIUC) – from $49,250 to $131,724
Brigham Young University (BYU) – from $47,904 to $141,337
Texas A&M University – from $49,634 to $158,496
University of Southern California (USC) – from $55,041 to $153,065
University of Washington (UW) – from $47,740 to $148,772
CPAs working for popular companies earn the following yearly wages:
Ernst and Young LLP – from $46,811 to $123,544
PricewaterhouseCoopers – from $ 48,636 to $107-416
KPMG, LLP – from $47,886 to $112,235
Deloitte & Touche, LLP – from $48,638 to $128,503
Deloitte Tax, LLP – from $53,401 to $123,420
Grant Thornton, LLP – from $47,023 to $125,755
BDO Seidman, LLP – from $49,779 to $119,490
United States Internal Revenue Service (IRS) – from $43,714 to $119,552
Bkd, LLP – from $48,928 to $93,716
Caterpillar, Inc. – from $58,650 – $92,500
Virchow, Krause and company, LLP – from $45,302 to $113,235
Century Business Services, Inc. (CBIZ) – from $52,929 to $127,863
Larsonallen LLP – from $45,615 to $95,674
Bank of America Corp. (BOFA) – from $58,389 to $167,094
J.P. Morgan Chase & Co. (JPMCC) – from $29,361 to $127,661
Hewlett-Packard Company – from $61,218 to $151,211
International Business Machines (IBM) Corp. – from $2,159 to $236,718
Citigroup, Inc. – from $49,832 to $278,122
General Electric (GE) Capital – from $69,043 to $199,395
The Walt Disney Company – from $59,180 – $148,994
In popular cities, the annual salary range for CPAs is as follows:
Dallas, Texas – from $49,210 to $148,289
Los Angeles, California – from $49,514 to $154,394
Houston, Texas – from $49,667 to $147,234
Chicago, Illinois – from $50,238 to $146,278
New York, New York – from $52,866 to $183,286
Difference in the CPA Salary
It has also been noted that there is a difference in the salary of certified public accountants according to gender. In the U.S., 43% of the total certified accountants are females while 57% are males. For the female population, average annual salary is from $54,280 to $90,950. For the male, average annual salary starts at $56,219 to $110,873.
As indicated on the above figures, the average CPA salary greatly varies depending on the state in which the accountant works; the number years of experience that the accountant has; the company’s size and remuneration structure. Generally, larger companies tend to pay much more when compared with the smaller companies.
Earning a CPA can also open opportunities for accountants to open their own CPA practice. With this, they are able to earn additional income and increase their annual salaries while keeping their regular jobs. They can also employ other people to work for them and be their own boss. A CPA salary can reach up to six figures or more depending on the accountant’s hard work, drive and ambition.
