When it comes to accountant salaries, there is no one definitive number. The amount that a CPA makes can vary depending on their experience, the size of the company they work for, and their location. Let’s compare averages.
When it comes to accountant salaries, there is no one definitive number. The amount that a CPA makes can vary depending on their experience, the size of the company they work for, and their location. Let’s compare averages.
Accountant Salary in 2022 – Hourly and Yearly Wages
The average accountant salary in the United States is $39.26 per hour, or $81,660 per year. The median salary is slightly lower at $35.37 per hour, or $73,560 per year. These figures are based on data from the Bureau of Labor Statistics (BLS) for 2020.
According to Salary.com calculations, the median pay for an experienced accountant is $67,270 per year. Senior accountants can expect to make $84,190, while juniors will typically make $58,002 annually.
Does it matter if you’re a CPA or not? The answer is yes, especially at the beginning of your career. A non-CPA accountant with 0-3 years of experience will typically make 30% less than a CPA. The more experienced you are, the lesser the difference is.
Accountant Salaries over the Years
Accountant salaries have seen a slight uptick in recent years. In 2020, the average accountant made $39.26 per hour, or $81,660 per year. This is an 8.5% increase from 2015 when they averaged $36.19 per hour, or $75,280 per year.
If you adjust those numbers to inflation, the pay has actually decreased by around $540 per year. It’s nothing to be worried about, though, as the median wage has kept up with inflation.
Accountant Salary by State
There is a wide range of accountant salaries across the United States. The highest average pay in 2020 was reported in the District of Columbia, where CPAs make $52.95 per hour, or $110,140 per year. This is nearly 35% more than the national average.
Other high-paying states included:
- New York – $101,440;
- New Jersey – $96,260;
- Massachusetts – $88,830;
- California – $88,130.
On the other hand, accountants in North Dakota, Nevada, Montana, Wyoming, Utah, New Mexico, Louisiana, Mississippi, and South Carolina were paid noticeably less than the national average.
What Does an Accountant Do?
An accountant is responsible for managing the financial health of a company or individual. They prepare and examine payrolls, ensure that taxes are paid correctly and on time, and provide advice on investments and other money-related matters.
What Can Accountants Specialize in?
There are many specialties within accounting, including auditing, tax preparation, and financial planning. Some accountants may also choose to specialize in a certain industry, such as healthcare or real estate. Your accountant salary may vary depending on what kinds of companies you work for.
History of Accounting
The history of accounting can be traced back to ancient times. The first accountant is thought to have been the scribe of Ancient Sumer, who kept track of trade and barter transactions around 4000 BCE.
In the Middle Ages, accounting was used by monasteries and merchant guilds to keep track of finances. By the Renaissance, double-entry bookkeeping was developed, and accounting became increasingly sophisticated.
Today, accounting is an essential part of any business or organization. Without accurate financial records, it would be impossible to run a company effectively.
Is Accounting the Right Path for You?
If you’re good with numbers and have a head for business, accounting may be the right career path for you. It’s a stable profession with good job prospects, and the average accountant salary is pretty solid.
Of course, it’s not all about the money. Accounting can be challenging and rewarding, and it offers the opportunity to make a real difference in the lives of others. If you’re interested in learning more, visit the American Institute of Certified Public Accountants (AICPA) website.
What Hours do Accountants Work?
Most accountants work full-time, but some may work part-time or overtime during busy periods. Many accounting firms offer flexible hours and the opportunity to work from home, which can be a great perk.
What Benefits Do Accountants Get?
If the average accountant salary looks appealing to you, it’s not all you can get. Accountants often enjoy a benefits package that includes health insurance, retirement savings plans, and paid vacation days. Some firms also offer tuition reimbursement for employees who want to further their education.
How to Become an Accountant?
If you’re interested in becoming an accountant, you’ll need at least a bachelor’s degree in accounting or a related field. Many employers also prefer that candidates have a master’s degree.
The Certified Public Accountant (CPA) designation is the most common credential in this field. To become a CPA, you must pass an exam administered by the American Institute of Certified Public Accountants (AICPA).
Set on Pursuing an Accounting Career?
If you’re interested in pursuing a career in accounting, the best place to start is by looking into the CPA designation and what it takes to become a certified accountant.
The field of accounting offers many opportunities for career growth and advancement. If you have the skills and passion for this field, you can make a real difference in the lives of others and enjoy a solid accountant salary and benefits package.
