Accountancy is a degree path that often pays off well, which is good news if you’re thinking about going to school for it. Accounting has one of the highest median salaries of any profession, at nearly twice the national average. You can expect a wide range of earnings potential with this career path, as with any other. The amount of money you make as an accountant depends on a variety of factors.
Accounting Professionals’ Salary Scale
According to the Bureau of Labor Statistics, the median salary for all accountants and auditors in the United States is $69,350. (BLS). A financial specialist’s median annual salary is $70,120. The median salary for accountants is still high enough to put them above nearly two-thirds of all business occupations. The BLS reported a median wage of $37,690 for all occupations, but accountants make close to twice that amount.
The salary that falls in the middle of the pay scale is known as the median salary. There are low-paid accountants and there are high-paid accountants. According to the BLS, the lowest paid 10 percent of accountants and auditors earn less than $43,020, while the highest paid earn more than $122,220.
A bachelor’s degree in accounting can lead to a starting salary of $52,922.
Accountants’ salaries are affected by a variety of factors.
If you have the option, you’d prefer to have a salary at or above the midpoint of an accountant’s salary range. There are a number of factors that go into determining an employee’s potential salary. However, many of these aspects can be controlled as you begin your career in accounting.
Less experienced accountants, of course, have a lower salary While you can’t do much about this at the beginning of your career, once you get your first accounting job, you can influence how much and what kinds of experience you get. A summer or part-time internship with an accounting or business firm during your undergraduate studies can give your early career a boost, according to the BLS, even if you start at the bottom. The more challenging work you take on as an entry-level accountant, the more supervisors will trust you and your abilities, and the more you will be able to network with others in the accounting field.
When it comes to maximizing your earning potential, experience is an important piece of the puzzle, but it is not the only factor that matters. Another way to increase your salary is by pursuing a master’s degree. It is possible for those who are pursuing a Master’s degree in accounting to gain the knowledge and skills necessary for senior-level management or specialized accounting positions, such as a forensic accountant, tax accountant, or auditor. These positions typically pay more because they demand a higher level of expertise. In addition, earning a certification such as a Certified Public Accountant (CPA) license, a Certified Management Accountant (CMA), a CIA designation, or a CISA designation can increase your earnings.
Moving to a city where accountants make the most money is a good idea if you want to boost your income. According to the BLS, places like Washington, D.C., New York, New Jersey, Virginia, and California are good choices.
Accountants and auditors make the most money in these industries.
The field in which you work plays a significant role in determining how much money you can make with an accounting degree. In the finance and insurance industry, accountants can expect to earn a median salary of $74,140. There is a median salary of $72,160 for accountants employed by corporations and businesses, according to the Bureau of Labor Statistics (BLS). Accounting, tax preparation, bookkeeping, and payroll services employ 25% of all accountants and auditors, with a median salary of $69,410. In the private sector, the median salary for accountants is $71,200.
Self-employed accountants make up around 7% of the profession. They can set their own pay rates, but they also have the responsibility of attracting and retaining clients and managing their own accounting firm.
