If you are thinking of becoming an accountant, you might be curious as to the benefits of becoming an accountant, what the position entails, and what the average salary is for an accountant. All of these factors are important to consider when deciding on accounting as a career.
Benefits of the Accounting Profession
The benefits of working in the accounting profession are abundant. There are many different career paths from which an accountant can choose, numerous specialization opportunities, job security, and an overall large salary. There are also opportunities for accountants to travel for work, opportunities for career advancement, and having the ability to open your own practice.
Position requirements for an Accountant
Accountants typically have a bachelor’s degree in accounting or finance and their daily work could vary greatly depending on what type of position they hold. They are responsible for a variety of finance-related tasks, which most often include some form of preparing and managing financial records while following the Generally Accepted Accounting Principles (GAAP) in their practice.
Average Salary for an Accountant
The average base salary for an accountant is $51,906. However, that salary is flexible when considering other factors, such as experience and education, size of accounting firm or company, location of accounting firm or company, and other monetary benefits. Therefore, the average accountant salary can vary between $41,00 and $71,000 per year. Bonuses for accountants can range from $500 to $7,000, profit sharing can range from $482 to $6,000 and commissions can range from $203 to $10,000. With all of these extra financial benefits considered, mostly in case of personal tax accountants, CPAs, internal auditors or chartered accountants; OTE in salary is seldom counted, as they usually get a fixed salary, barring some accountancy firms that have representatives who earn OTE through sales and target achievements.
Why Become a CPA
As an accountant, the best way to increase your salary and professional opportunities is to work towards obtaining your Certified Public Accountant (CPA) license. As a CPA, you’ll also have a better choice of career paths. Some possible career path choices include working in public accounting, for a federal government agency, in the private sector, for a non-profit organization, or in academia.
CPA Salary vs Non-CPA Salary
If you’re still wondering if you should take your career a step further and work towards obtaining your CPA credential, please consider the chart below that indicates how the CPA license will provide an increase in salary.
Licensed CPA Salaries Chart
| Title / Experience | Percentile | |||
| 25% | 50% | 75% | 95% | |
| Tax Services | ||||
| Senior Manager / Director | $114,250 | $137,500 | $165,000 | $217,000 |
| Manager | $88,500 | $107,000 | $127,000 | $167,750 |
| Senior | $62,000 | $73,250 | $87,250 | $115,500 |
| 1 to 3 Years | $49,000 | $59,750 | $70,500 | $93,500 |
| Up to 1 Year | $40,500 | $49,000 | $57,250 | $75,750 |
| Audit/Assurance Services | ||||
| Senior Manager / Director | $112,500 | $134,750 | $161,000 | $212,000 |
| Manager | $76,250 | $93,500 | $110,000 | $145,250 |
| Senior | $54,250 | $66,750 | $78,500 | $103,500 |
| 1 to 3 Years | $45,000 | $54,500 | $64,250 | $82,250 |
| Up to 1 Year | $40,500 | $49,000 | $57,750 | $76,500 |
*Source: CPA Salary in USA 2021
