The accounting profession gives CPAs with competitive entry level salaries and benefits. This is true for those that have been certified as those that haven’t gotten their certification yet might be offered a totally different remuneration.
Various reports and surveys show slightly varying amounts when it comes to the average CPA salary. The salary that is given is often based on a number of factors.
The state in which the CPA practices his profession
This is one of the major factors which can affect the salary of a CPA. Different states have different salary brackets for accountants, of course, it often follows that a progressive state such as New York or Texas has higher salaries for their CPAs. New York offers median salaries of $75,000 per year. Texas and Illinois offer a median salary of $69,000 and $68,000 respectively.
The CPA’s level in the organization
If you’re an entry level CPA in a firm, then don’t be surprised that you’re not earning as much as a seasoned accountant in your team. As you gain more experience, naturally, you will also get an increase along the way.
The size of the CPA firm
The average CPA salary is also determined by the success of the company. Do they only have a handful of clients? Are they only operating locally? If you said yes to both instances, then it is apparent why you’re not earning much.
The average CPA salary bracket
Individuals with only 1-3 years of experience have salaries that can range from $35,000-$47,000 each year. This is based on the average salaries that are given to those who work in small firms.
Entry level accountants in large firms earn more. Their salary range is from $42,000-$60,000 annually.
Individuals who have Master’s degree and CPA certification earn 10% more than those who don’t have the certification.
Those who have already gained sufficient experience and have been promoted as partners in a firm, the salary starts at $175,000 each year.
Directors who work with the biggest firms can demand for a salary of $85,000 up to $130,000. Medium firms can offer directors with a salary range of $76,750 to $111,000. Directors of small firms can expect to earn $71,500 to $90,250.
When it comes to business and industry, CFOs or Chief Financial Officers or treasurers in CPA firms can expect a salary range of $244,500 to $347,250 as long as they have sales in excess of $500 million every year. When you’re at these senior level positions, you can already demand for incentives, bonuses and other perks.
A CPA’s task is all-encompassing since he can take care of cash management, finance analysis, budget improvement, cash flow anticipation, audits, and many more. He offers great help to any business this is why he should be given the remuneration that is due him.