The average accountant salary is $64,000. The average salary for most entry level accounting positions is $59,000. Some accounting careers produce salaries of nearly $85,000 a year. As with most careers, salary will increase with experience. In most cases, accounting careers can be very lucrative as experience is gained. Accountants who pass the four-day Uniform CPA Examination will make more than those in accounting jobs that do not require such certification.
Accounting Careers
Accounting is more than just crunching numbers. A big part of accounting is offering sound financial advice based on a knowledge of financial regulations and the current state of the economy. Most accountants need to have a general understanding of business and economics.
Public accountants are generalists in the field. They tend to have a wide client base that includes individuals, businesses, nonprofit organizations, corporations and government agencies. Services they provide range from preparation of tax returns and preparing investment recommendations to managing data processing systems and healthcare benefits for small businesses.
Forensic accountants assist criminal investigators by combining accounting skills with legal knowledge. Forensic accountants may be used to trace financial dealings and determine assets involved in a particular situation.
Government accountant positions include auditors for state, local and federal agencies. Government accounting positions usually involve auditing other agencies and businesses to be sure that they are meeting government regulations and tax requirements. On a federal level, accountants may become IRS agents or hold auditing positions with state and local financial institutions.
Internal auditors ensure that a business or organization is operating efficiently on an internal level. Internal auditors may become Certified Internal Auditors with at least two years of experience after passing the Internal Auditors Exam. Any accountant filing a report with the Securities and Exchange Commission must be a CPA.
Management accountants work closely with executives to analyze financial information. Management accountants perform evaluations, prepare budgets and establish cost management and budget procedures. They often provide interpretations of complex financial data and work closely with business executives.
Accounting Salaries
Accounting salaries are usually higher in the private sector than government accounting jobs. Salaries tend to be higher in major cities. Those who make it to top accounting firms such as E&Y, KPMG, Deloitte and PWC may enjoy annual payouts of nearly $1,000,000 or more. Accounting salaries will vary by education and work experience.
- Entry level – $55,000 to $59,000 (first year)
- Junior staff accountant – $46,000 to $63,000 (1-2 years experience)
- Senior staff accountant – $65,000 to $95,000 (3-5 years experience)
- Manager – $65,000 to $140,000 (5-7 years experience)
- Senior manager – $72,000 to $160,000 (7 plus years experience)
- Partner – $200,000 to $3,000,000 (10 plus years experience)
Education Required
Those interested in pursuing an accounting career should take as many math courses as possible in high school in preparation for the requirements of an accounting or auditing degree. Most accountant positions require a bachelor’s degree in accounting. Beginning government accountant positions generally require a degree from a four year college with a requirement for at least 24 semester hours in auditing or accounting, or the equivalent of the necessary experience and education.
Exact educational requirements vary by employer. Some prefer applicants who have a master’s in accounting or an additional degree in business administration. Some accounting positions require an extensive knowledge of business and employers may require a master’s in business administration with a concentration in accounting.
Some schools offer degrees emphasizing training in specialty professions such as forensic accounting or internal auditing. Some professional associations offer accounting courses and related seminars and conferences. Graduates of junior colleges or business schools who meet the requirements of their employers may obtain junior accounting positions and acquire additional skills needed for advancement while on the job. Initially, a beginning accountant or auditor will likely work under the direct supervision of an experienced accountant prior to being granted more responsibility.
Expected Growth
According to Careerbuilder.com, an accounting degree is one of the top 20 most wanted degrees, meaning there are plenty of career opportunities for those seeking to advance in the accounting field. Accounting jobs are expected to grow by 22% by 2018 according to the Bureau of Labor Statistics.