CPA Average Salaries & Wages by State: 2025 Career Paths
Co-Founder and Chief Data Scientist
A staggering 75% of the Association of International Certified Professional Accountants (AICPA) members became eligible for retirement in 2020, and the certified public accountant (CPA) pipeline is at its lowest in more than 13 years (AICPA, 2021). Industry observers, however, are not seeing CPA average salary by state as the main reason for the decline in interest among accounting graduates. Instead, a recent survey revealed that practitioners are no longer interested in the value of a CPA credential, given the workload and time commitment required to pass the licensure exam.
However, this should not be the case, as the CPA role is among the highest-paying jobs. Becoming a certified public accountant paves the way for enhanced career opportunities as CPAs can expect to earn 10% to 15% more on average than non-CPAs. These professionals can also take on various managerial roles in the fields of accounting and finance, and even with other key business functions. The largest accounting firms pay as much as $69,000 entry-level salary for billing coordinator roles, and $87,000 starting salary for staff accountants (Atrium, 2023).
Research.com experts have gathered relevant resources to create this guide on CPA average salaries and wages, including data from key organizations and agencies that monitor the accounting profession. The average salaries for various roles in accounting and finance are provided plus, the pay variations based on the job location, firm size, educational credentials, industry, and work experience. The state of the profession and CPA career outlook are also discussed, including certifications for advancement.
CPA Average Salaries and Wages Table of Contents
- How much does a CPA make?
- Where should I work as a CPA?
- What is the career outlook for CPAs?
- What are the misconceptions about becoming a CPA?
- Certifications for Advancement
- Accelerated Accounting Programs as a Fast-Track to CPA Certification
- What specialized certifications can enhance a CPA career?
- The Impact of Advanced Degrees on CPA Career Growth
- How important is professional networking for CPA career success?
- Exploring Alternative Education Pathways to Build a CPA Career
- Can an affordable online accounting associate degree kickstart your CPA career?
- What additional certifications can further diversify your accounting skill set?
- How can affordable advanced degrees fast-track your CPA career progression?
- What future trends are reshaping the CPA profession?
- What strategies can CPAs use to negotiate competitive salaries?
How much does a CPA make?
Becoming a CPA can be a lucrative career choice with a range of potential salaries. The CPA average wage classified under accountants and auditors in the United States is around $77,250 annually, quite close to the average forensic accounting salary of $71,00, according to Payscale. That is significantly higher than your salary if you become a bookkeeper. Take note that the salary range can vary widely depending on factors such as location, years of experience, industry, and size of the firm (BLS, 2022).
CPAs with more years of experience generally earn higher salaries. For example, entry-level senior tax accountants can expect to earn an average of $69,124 per year, while those with five to 10 years of experience can earn an average of $85,526 to $111,523 per year (LHH, 2022).
Regarding industry affiliation, CPAs working in finance and insurance tend to earn the highest annual salaries at $79,310 as of May 2021, followed by those working in accounting, tax preparation, bookkeeping, and payroll services earning $77,080 on average (BLS, 2022).
The employment location also has a bearing on the salaries of CPAs. According to the Bureau of Labor Statistics (BLS), the highest-paying states for CPAs in the U.S. are the District of Columbia, New York, New Jersey, Virginia, and California, with average salaries ranging from $89,000 to $105,000 per year.
Finally, firm size also influences CPA salaries. The four largest public accounting firms in the world—Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG)—are known to offer the most competitive salaries. Based on 2023 data from ZipRecruiter, the average annual pay from these big four accounting firms is $92,883 or $44.66 per hour.
Based on Academic Qualifications
In the United States, becoming a Certified Public Accountant (CPA) requires a minimum of a bachelor’s degree in accounting or a related field, as well as passing the CPA exam and meeting other state-specific requirements. However, some employers may prefer or require a master’s degree in accounting, business administration, or a related field.
Your degree and other academic credentials, such as your major, can have an impact on CPA salaries. What is a major in the context of academic credentials? In general, the more related your major is to the role you are applying for, and the higher the level of education, the higher the salary you can expect to earn as a CPA. CPAs with specialized certifications, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) may also earn higher salaries.
According to the BLS, the median annual wage for all accountants and auditors, including CPAs, with a bachelor’s degree was $77,250 as of May 2021. However, entry-level salaries for new graduates may be lower. CPAs with a master’s degree in accounting or a related field, such as financial analysts, can expect to earn higher salaries at $91,580 annually. CPAs with a Ph.D. in accounting or a related field may have opportunities for higher-level positions in academia, research, or consulting. Based on data from Payscale, the average salary for a CPA with a Ph.D. is around $108,000 per year.
Based on Years of Experience
According to data from the BLS, the average annual salaries for CPAs with 0-2 years of experience is around $60,000 to $70,000. Mid-level CPAs with three to five years of experience receive an average annual salary of $75,000 to $90,000. CPAs with more than six years of practice receive around $90,000 to $120,000 or more, depending on factors such as location, industry, and specialization.
Based on Job Location
According to data from the BLS, the top five highest-paying states for CPAs in the U.S. are the District of Columbia, New York, New Jersey, Virginia, and California.
The higher-than-average salaries for CPAs in these areas can be attributed to several factors:
- High demand for accounting services. These states have large populations and strong economies, which create a high demand for accounting services in a range of industries such as finance, technology, healthcare, and real estate.
- Cost of living. The cost of living is generally higher in these states, so CPA average salary by state tend to be higher to reflect the higher cost of living. Other factors also influence the CPA average salary by state.
- Industry specialization. Certain industries, such as finance, entertainment, and technology, are concentrated in these states, and CPAs with expertise in these areas can command higher salaries. These are CPAs in demand for their specialized skills.
- Competition among firms. With many accounting firms competing for top talent, firms in these states may offer higher salaries to attract and retain the best CPAs. Accountants are among the most sought-after workers across industries.
It is also worth noting that these states tend to have higher requirements for becoming a CPA, such as additional education or experience requirements beyond the standard CPA certification. This can lead to a more highly skilled and specialized workforce, which can command higher salaries.
Do CPA salaries differ based on firm size?
CPA salaries can differ based on the size of the accounting firm. In general, larger accounting firms tend to offer higher salaries than smaller firms. This is because larger firms often have more resources and can offer more comprehensive benefits packages, including higher salaries, to attract and retain top talent.
According to a survey conducted by the AICPA, CPAs working in firms with one to 10 employees had an average salary of $73,700 per year, while those working in firms with 11-50 employees had an average salary of $88,400 per year. In comparison, CPAs working in firms with over 200 employees had an average salary of $110,700 annually.
However, it is important to note that smaller firms may offer other benefits, such as more flexibility or a greater sense of autonomy, that could make up for a lower salary. Determining how much do CPA accountants make a year also entails researching specific firms and job openings in your area.
Where should I work as a CPA?
Best Metropolitan Areas
Based on BLS data, the best metropolitan areas for CPAs are New York City, Chicago, Los Angeles, Washington D.C., and Dallas.
New York City is the largest metropolitan area in the U.S., and it is home to many large accounting firms, including the “Big Four" firms of Deloitte, PwC, Ernst & Young, and KPMG. The city also has many multinational corporations, financial institutions, and law firms, which require the services of CPAs.
Chicago is where several Fortune 500 companies, including Boeing, McDonald’s, and Walgreens, are located. It also has many mid-sized and small businesses that require accounting services. Los Angeles has a vibrant entertainment industry, which includes movie studios, record labels, and talent agencies that require the services of CPAs. The city also has a growing technology industry, which offers opportunities for accountants.
Washington, D.C. is home to many government agencies, non-profits, and consulting firms, which require accounting services. The city also has a high concentration of CPAs and a strong network of professional organizations.
Best Industries
According to the BLS, there were 1.3 million accountants and auditors employed in the U.S. as of May 2020. The BLS reports that the majority of these professionals work in the accounting, tax preparation, bookkeeping, and payroll services industries, which include public accounting firms. The federal government employs many accountants and auditors, with 69,580 professionals working for the government as of May 2020, according to the BLS. State and local government agencies, as well as non-profit organizations, also employ CPAs.
According to data from the BLS, the top 5 highest paying industries for CPAs in the U.S. are:
What is the career outlook for CPAs?
The CPA career outlook is generally positive. According to the BLS, the employment of accountants and auditors, including CPAs, is projected to grow 6% from 2020 to 2030, which is about as fast as the average for all occupations. As of August 2022, there are 665,612 actively licensed CPAs (NASBA, 2022).
The demand for CPAs is driven by factors such as the increasing complexity of tax laws and regulations, the need for businesses to comply with financial reporting requirements, and the increasing globalization of business. Additionally, as the economy continues to recover from the COVID-19 pandemic, there is expected to be increased demand for CPAs to help businesses navigate the financial challenges of the pandemic.
What is the job outlook for accountants? CPAs with specialized skills, such as in areas like tax preparation, forensic accounting, and information technology, may have even stronger career prospects. Additionally, CPA job outlook for those who stay up-to-date on the latest accounting technologies and software by taking an online business program, as well as industry and regulatory changes, may be better positioned to advance in their careers and take on new opportunities.
The study “A Framework and Resources to Create a Data Analytics-Infused Accounting Curriculum" by Dow, Watson, and Jacknis (2021) proposes a framework for integrating data analytics into accounting education. The study identifies the need for accounting students to acquire skills in data analytics, also possible through data analytics online programs, as businesses increasingly rely on data-driven decision-making. Published in Issues in Accounting Education, the authors argue that “a fully-integrated curriculum helps create graduates with strong Data Analytic skills that complement accounting knowledge. These technically savvy, accounting graduates can propel their future organizations into the future of Big Data and Data Analytics. However, accounting instructors should keep in mind that the techniques, tools, and terms used in Data Analytics are continually evolving. As a consequence, the accounting curriculum will also have to continually evolve to stay relevant in this technology-driven world."
What are the misconceptions about becoming a CPA?
There are several misconceptions about the CPA career path that might deter aspiring accountants from pursuing certification. Understanding the truth behind these myths can help individuals make informed decisions:
- CPA certification is only for tax and audit roles: While CPAs are often associated with tax and auditing, they can specialize in many areas such as forensic accounting, management consulting, and financial planning.
- The CPA exam is impossible to pass: Though challenging, the CPA exam is not insurmountable. With the right study materials and consistent preparation, many candidates successfully pass the exam.
- CPAs always work long hours: While public accounting firms have busy seasons, many CPAs work in industries with standard work hours, especially in government or corporate roles.
- Becoming a CPA is only valuable for large firms: CPAs are in demand in small firms, private companies, and even as independent consultants, offering a wide range of opportunities beyond large accounting firms.
Certifications for Career Advancement
Among those who are planning on becoming a CPA, 97% cited career advancement as the main reason for pursuing certification, while 75% rated the value of a CPA credential as very valuable (ICPAS, 2021). Online accounting degree programs and related degrees and certifications are also offered by institutions to provide wider access to those who want to pursue public accounting certification.
In addition to becoming a CPA, there are different areas of practice and specialization within the accounting profession that CPAs can pursue from the most affordable online schools. The CPA salary outlook for those with certifications can vary widely depending on the type of certification, years of experience, location, and industry specialization. In general, however, having a certification can lead to higher salaries due to the specialized expertise and skills that come with the certification.
To provide you with additional information on salary ranges for CPAs with certifications, our team at Research.com collected information about the different certifications every CPA can pursue, as well as the estimated salary for each role. Here are some examples of popular certifications for CPA professionals:
Certified Management Accountant
The Certified Management Accountant (CMA) certification is a professional certification offered by the Institute of Management Accountants (IMA) to professionals working in the field of management accounting and financial management. The CMA certification is designed to provide a comprehensive understanding of financial planning, analysis, control, decision support, and professional ethics. The certification is recognized globally and demonstrates a commitment to professional excellence, financial expertise, and ongoing professional development.
The average salary for a senior-level management accountant with a CMA certification is between $102,750 to $164,500 per year (Robert Half, 2023).
Certified Internal Auditor
The Certified Internal Auditor (CIA) certification is a professional credential offered by the Institute of Internal Auditors (IIA) to internal auditors. The CIA certification is a globally recognized qualification that demonstrates an individual’s knowledge, skills, and abilities in the field of internal auditing. This certification provides a comprehensive understanding of internal auditing standards, procedures, and techniques. It is recognized globally and provides opportunities for career advancement and increased earning potential.
According to the 2021 Salary Guide by Robert Half, the average salary for a senior-level internal auditor with a CIA certification is between $98,500 to $139,000 per year.
Certified Fraud Examiner
The Certified Fraud Examiner (CFE) certification is a professional credential offered by the Association of Certified Fraud Examiners (ACFE). The CFE credential is designed to certify individuals with specialized knowledge and expertise in fraud prevention, detection, and investigation. The CFE certification is recognized globally and demonstrates an individual’s commitment to the prevention and detection of fraud. CFEs work in various fields, including accounting, finance, auditing, law enforcement, and consulting. They use their specialized knowledge to identify fraudulent activities, investigate suspected fraud, and implement measures to prevent future occurrences.
The average salary for a senior-level forensic accountant with a CFE certification is between $95,250 to $156,250 per year (Robert Half, 2023).
Certified Government Financial Manager
The Certified Government Financial Manager (CGFM) certification is a professional credential offered by the Association of Government Accountants (AGA) to individuals who work in financial management roles in the government sector. The CGFM certification demonstrates an individual’s knowledge and expertise in government financial management. It is recognized globally and provides opportunities for career advancement and increased earning potential.
According to the 2021 Salary Guide by Robert Half, the average salary for a senior-level government accountant with a CGFM certification is between $94,250 and $136,500 per year.
Chartered Global Management Accountant
The Chartered Global Management Accountant (CGMA) designation is a professional certification awarded to individuals who have completed the Chartered Institute of Management Accountants (CIMA) program. The CGMA designation is jointly offered by the American Institute of Certified Public Accountants (AICPA) and CIMA. The CGMA designation demonstrates an individual’s knowledge and expertise in management accounting, business strategy, and financial management. CGMAs play a critical role in helping organizations to manage their finances effectively and are highly valued for their business acumen, ethics, and commitment to excellence.
The average salary for a senior-level management accountant with a CGMA certification is between $102,250 and $160,750 per year (Robert Half, 2023).
Certified Valuation Analyst
A Certified Valuation Analyst (CVA) is a professional who is trained to provide valuation services to businesses, individuals, and organizations. The CVA designation is offered by the National Association of Certified Valuators and Analysts (NACVA) and requires a combination of education, work experience, and passing a comprehensive examination. CVAs are experts in business valuation and financial analysis. They are typically hired to provide valuation services for various purposes, including mergers and acquisitions, litigation support, taxation, financial reporting, and business planning.
According to the 2021 Salary Guide by Robert Half, the average salary for a senior-level business valuation analyst with a CPA and CVA certification is between $121,500 and $192,500 per year.
Accelerated Accounting Programs as a Fast-Track to CPA Certification
With a growing demand for CPAs and a significant portion of the profession nearing retirement, entering the field of accounting quickly and effectively is more crucial than ever. Accelerated accounting programs offer a streamlined pathway for aspiring CPAs who wish to meet certification requirements sooner. By reducing the time typically needed to earn an accounting degree, these programs allow students to gain practical skills and knowledge at a faster pace, preparing them to enter the job market and pursue certification without delay.
In addition to time efficiency, accelerated accounting degree programs often provide flexible online options, enabling students to balance their studies with work or other responsibilities. These programs are designed to cover essential accounting principles, financial reporting, and auditing standards comprehensively, equipping graduates with the qualifications needed to sit for the CPA exam. For those who are eager to start their careers or make a career switch into accounting, an accelerated program can be an invaluable option, combining quality education with efficiency.
Completing an accelerated accounting program offers the benefit of entering the workforce quickly, which means early exposure to real-world accounting experience, networking opportunities, and an immediate chance to build the foundational knowledge that a CPA career requires.
What specialized certifications can enhance a CPA career?
Specialized certifications can significantly enhance a CPA career, offering advanced knowledge and skills in specific areas of accounting. For instance, a masters in forensic accounting can provide expertise in forensic accounting, enabling CPAs to investigate financial crimes and guide businesses in preventing fraud. Other certifications, such as Certified Management Accountant (CMA) or Certified Internal Auditor (CIA), can also lead to higher salaries and increased job security. By pursuing these specialized certifications, CPAs can differentiate themselves in the job market, take on more challenging roles, and contribute to the growth and success of their organizations.
The Impact of Advanced Degrees on CPA Career Growth
For many CPAs, pursuing an advanced degree, such as a Master of Accounting or an MBA, can significantly enhance career growth and open up new opportunities. While becoming a CPA already offers considerable career benefits, additional degrees can provide deeper financial expertise, broaden leadership skills, and increase one’s potential for advancement in high-level management roles.
A Master’s in Accounting, for example, often positions CPAs for leadership roles in corporate finance, financial analysis, and executive decision-making. It can also offer a deeper understanding of complex financial regulations, international accounting standards, and strategic financial planning. The ability to analyze financial data with advanced techniques and lead financial teams effectively is a strong asset that organizations highly value.
Moreover, an MBA, particularly one with a focus on finance or management, further amplifies a CPA’s value, especially in strategic roles like Chief Financial Officer (CFO) or Financial Director. The combination of accounting expertise and business leadership training makes CPAs in these roles crucial for shaping the financial strategy of organizations.
Many professionals wonder whether getting an advanced degree is truly worth it. If you’re considering this path, it’s essential to evaluate your career goals, your current qualifications, and how much additional time and investment you're willing to commit. For some, the long-term financial returns and career progression may far outweigh the initial costs.
If you're contemplating whether to pursue a master's degree after becoming a CPA, it’s worth considering if the additional education aligns with your professional aspirations. For example, is getting a masters in accounting worth it might be a question worth exploring further to understand the specific benefits that advanced degrees can offer.
By pairing your CPA with a specialized degree, you can position yourself for more influential roles within organizations, higher earning potential, and increased job security in an increasingly competitive job market.
How important is professional networking for CPA career success?
Professional networking plays a pivotal role in advancing a CPA career. Establishing relationships with industry peers, mentors, and thought leaders not only provides insights into emerging industry trends but also creates opportunities for collaboration and career growth. Engaging in professional associations, attending industry events, and enrolling in specialized programs—such as an accounting course online—can enhance technical skills and foster critical connections. These networks often become a resource for continuous learning, promote access to exclusive job opportunities, and support leadership development through shared expertise and career guidance.
Encouraging Accounting Graduates to Pursue Public Accounting Certification
The words most associated with a CPA credential are accounting, auditing, and tax preparation. Yes, the profession is also associated with above-average salaries, but there is a general perception that CPA professionals work long hours. Once perceived as a prestigious profession, today, public accounting firms are implementing various strategies to encourage students to take up accounting and pursue certification to boost the CPA pipeline. Is there a demand for CPAs? Yes, in fact, there is a shortage across industries.
Through the years, the role of accountants has evolved. CPAs and accounting professionals today play a major role in business strategy. These roles are adding value to the organization, and their business acumen and financial expertise are proving valuable in steering businesses to profitability and also in instituting control within for-profit companies.
Currently in a race for relevance, the CPA profession is a crucial foundation in building sustainable economies. Despite advances in automating work processes, the role of CPA professionals is more relevant today. Just as engineering skills are developed through practice and by earning an engineering online degrees, the discipline of accounting is developed intrinsically among practitioners. No technological advancement can replace the need for human judgment in accounting practice. Pursuing a career as a CPA is not just lucrative, but a profession that could contribute to a healthy and properly functioning economy and society.
For our last tip: If you’re looking into a CPA career but are quite busy with your current responsibilities, consider taking the flexible online degree vs traditional degrees that tend to be very structured.
Exploring Alternative Education Pathways to Build a CPA Career
For individuals seeking to explore pathways into accounting without committing immediately to a four-year degree, considering easy associate degrees can be a strategic step. While the CPA certification does mandate a bachelor's degree as a minimum requirement, starting with an associate degree can serve as an accessible entry point into the field.
These programs often cover foundational skills in accounting, bookkeeping, and financial principles, providing a robust starting platform for further education. Additionally, an associate degree enables aspiring CPAs to gain relevant work experience early on while simultaneously pursuing their bachelor's degree. This dual approach offers a seamless transition into higher-level accounting roles and can help in meeting the credit-hour requirements for the CPA exam.
By leveraging such pathways, prospective CPAs can achieve both academic progression and valuable work experience, ultimately positioning themselves strongly in the competitive accounting industry.
Can an affordable online accounting associate degree kickstart your CPA career?
An affordable online accounting associate degree offers a cost-effective entry point into the accounting field by providing foundational coursework that can prepare candidates for further study and CPA credentialing. This pathway helps in building essential skills and technical competencies early on, reducing time-to-career compared to traditional routes. Additionally, starting with a specialized associate degree can facilitate smoother transitions into bachelor’s and advanced programs, fostering an integrated academic progression. Emerging professionals may benefit from programs such as cheap online accounting associate degree programs, which focus on practical, industry-oriented learning while maintaining flexibility and affordability.
What additional certifications can further diversify your accounting skill set?
Supplementing CPA credentials with targeted certifications enables professionals to adapt to evolving market demands and showcase niche expertise. These supplementary credentials validate skills in specialized areas such as financial record management, strategic auditing, and risk assessment without overlapping core CPA competencies. For instance, acquiring a bookkeepers certification can demonstrate proficiency in maintaining accurate financial records—a valuable asset for firms seeking candidates with versatile abilities. Embracing these additional certifications can also broaden career options by opening doors to emerging roles in financial technology, regulatory compliance, and advisory services, thereby enhancing both professional credibility and market competitiveness.
How can affordable advanced degrees fast-track your CPA career progression?
Affordable advanced degree options provide a practical solution for CPAs seeking further specialization without the burden of excessive tuition costs. These programs are designed to deliver robust business and leadership training in a flexible format that supports career advancement and meets the evolving demands of the accounting industry. In evaluating the return on investment, candidates should consider programs that offer targeted curriculum and real-world application to enhance strategic decision-making skills. For instance, exploring opportunities offered by DBA programs online can serve as a valuable pathway to obtain advanced credentials at a competitive cost while gaining skills essential for long-term professional growth.
What future trends are reshaping the CPA profession?
Emerging digital innovations and evolving regulatory standards are driving significant shifts in the CPA landscape. Advances in cloud-based accounting software, artificial intelligence, and automated data analytics are redefining traditional roles, encouraging CPAs to develop not only technical proficiency but also enhanced advisory skills. These trends are fostering a more strategic, insight-driven approach to accountancy, where professionals are expected to interpret complex data sets and contribute to business decision-making. Furthermore, the integration of sustainable business practices and regulatory changes highlights the importance of continuous learning. For individuals considering non-traditional entry routes, exploring an accounting associate career path can serve as a gateway to gaining early practical exposure and staying agile in this dynamic environment.
What strategies can CPAs use to negotiate competitive salaries?
CPAs can enhance their negotiation effectiveness by leveraging up-to-date market data and clearly articulating their unique value. Professionals should review current compensation benchmarks—such as how much do accountants make—to establish realistic salary expectations based on factors like geographic location, firm size, and industry demands. Demonstrating specialized expertise through advanced certifications or technological proficiency further reinforces the case for higher compensation. Moreover, timing negotiations to coincide with performance reviews, new responsibilities, or promising job offers can yield better outcomes. Preparing detailed documentation of professional achievements and contributions enables CPAs to present a compelling, data-driven argument during salary discussions.
Key Insights
- High Earning Potential: CPAs typically earn significantly higher salaries compared to non-CPAs, with starting salaries for entry-level positions in large firms reaching up to $87,000.
- Demand for CPAs: The CPA profession is experiencing high demand, driven by factors such as complex tax laws, financial reporting requirements, and business globalization.
- Influence of Location and Industry: Salaries for CPAs can vary widely based on location and industry, with the highest-paying states being the District of Columbia, New York, New Jersey, Virginia, and California.
- Experience Matters: CPAs with more years of experience earn considerably higher salaries, with mid-level professionals earning between $75,000 to $90,000 annually, and those with over six years of experience earning $90,000 to $120,000 or more.
- Certifications for Advancement: Specialized certifications such as CMA, CIA, CFE, CGFM, CGMA, and CVA can significantly enhance career prospects and lead to higher salaries.
- Challenges and Opportunities: Despite high earning potential, the CPA pipeline is dwindling due to the perceived workload and time commitment required for certification. However, the evolving role of CPAs in business strategy offers numerous opportunities for career advancement and impact.
FAQ
- What factors influence the salary of a CPA? Several factors influence the salary of a CPA, including location, years of experience, industry specialization, firm size, and additional certifications. CPAs in high-demand areas such as the District of Columbia, New York, and California tend to earn higher salaries. Similarly, CPAs with more experience and those working in large firms or specialized industries such as finance and insurance also command higher pay.
- How does firm size impact CPA salaries? Generally, larger accounting firms offer higher salaries compared to smaller firms. According to a survey by the AICPA, CPAs in firms with over 200 employees earn an average salary of $110,700 annually, while those in smaller firms with one to 10 employees earn around $73,700 per year. Larger firms can offer more comprehensive benefits packages and have more resources to attract and retain top talent.
- What are the highest-paying industries for CPAs? The highest-paying industries for CPAs include finance and insurance, management of companies and enterprises, oil and gas extraction, and other investment pools and funds. CPAs in these industries can expect to earn annual mean wages ranging from $81,480 to $88,050.
- What is the career outlook for CPAs? The career outlook for CPAs is generally positive, with employment projected to grow 6% from 2020 to 2030. The demand for CPAs is driven by factors such as increasing complexity in tax laws and regulations, the need for compliance with financial reporting requirements, and the globalization of business. CPAs with specialized skills and those who stay updated with industry changes and technology are likely to have better career prospects.
- How can additional certifications impact a CPA's career? Additional certifications can significantly enhance a CPA’s career prospects and earning potential. Certifications such as Certified Management Accountant (CMA), Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Certified Government Financial Manager (CGFM), Chartered Global Management Accountant (CGMA), and Certified Valuation Analyst (CVA) demonstrate specialized expertise and can lead to higher salaries and advanced career opportunities.
- What steps should I take to become a CPA? To become a CPA, you need to complete a minimum of a bachelor's degree in accounting or a related field, pass the CPA exam, and meet state-specific requirements which may include additional education or work experience. Many CPAs also pursue advanced degrees or specialized certifications to enhance their skills and career prospects.
- Is it worth pursuing a CPA certification given the time and effort required? Despite the significant time and effort required to obtain a CPA certification, it is generally considered worth it due to the substantial career benefits. CPAs typically earn higher salaries, have better job security, and have access to a wide range of career opportunities in various industries. Additionally, the CPA credential is highly respected and can open doors to advanced positions in management and business strategy.
- How does location affect CPA salaries? Location has a significant impact on CPA salaries. CPAs in states with high demand for accounting services and a higher cost of living, such as the District of Columbia, New York, New Jersey, Virginia, and California, tend to earn higher salaries. The concentration of industries such as finance, entertainment, and technology in these states also contributes to higher pay.
- What are the benefits of working in a large accounting firm as a CPA? Working in a large accounting firm offers several benefits, including higher salaries, comprehensive benefits packages, and opportunities for career advancement. Large firms also provide extensive training and professional development programs, exposure to a diverse range of clients and industries, and a strong professional network.
- What role do CPAs play in business strategy and decision-making? CPAs play a crucial role in business strategy and decision-making by providing financial insights, ensuring compliance with regulations, and identifying opportunities for cost savings and efficiency improvements. They help organizations navigate complex financial landscapes, develop strategic plans, and make informed decisions that drive growth and profitability. CPAs' expertise in financial analysis, risk management, and regulatory compliance makes them valuable assets to any organization.
References:
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- Atrium (2023). The 2023 Finance and Accounting Salary Guide.
- Bureau of Labor Statistics (2022). Occupational Outlook Handbook: Accountants and Auditors.
- Dow, N., Watson, K., and Jacknis, M. (2021). A Framework and Resources to Create a Data Analytics-Infused Accounting Curriculum. Issues in Accounting Education.
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