Are you interested in a career in accounting? If so, you may be wondering how much accountants make. The answer to this question depends on a number of factors, including your experience, education, and location. In this guide, we'll provide you with an overview of the salary range for accountants in the United States, as well as some tips for increasing your earning potential.
According to the Bureau of Labor Statistics, the median annual wage for accountants in the United States was \$73,300 in May 2021. The lowest 10 percent earned less than \$45,560, and the highest 10 percent earned more than \$127,890. These figures include accountants working in a variety of settings, including public accounting firms, private companies, and government agencies.
Now that you have a general idea of how much accountants make, let's take a closer look at some of the factors that can affect your earning potential:
How much do accountants make
Salary depends on experience, education, location.
- Median annual wage: $73,300
- Lowest 10%: less than $45,560
- Highest 10%: more than $127,890
- Public accounting: higher salaries
- Private companies: lower salaries
- Government agencies: lower salaries
- Location matters: coastal cities pay more
- Experience and education boost salary
Accountants with more experience and education typically earn higher salaries. Additionally, accountants who work in coastal cities or in the public accounting sector tend to earn more than those who work in private companies or government agencies.
Median annual wage: $73,300
The median annual wage for accountants in the United States was $73,300 in May 2021, according to the Bureau of Labor Statistics. This means that half of all accountants earned more than this amount and half earned less.
- Experience: Accountants with more experience typically earn higher salaries. For example, accountants with 10 years of experience may earn a median annual wage of $85,000, while accountants with 20 years of experience may earn a median annual wage of $100,000 or more.
- Education: Accountants with higher levels of education also tend to earn higher salaries. For example, accountants with a bachelor's degree may earn a median annual wage of $75,000, while accountants with a master's degree may earn a median annual wage of $85,000 or more.
- Location: The location where an accountant works can also affect their salary. Accountants who work in coastal cities or in areas with a high cost of living tend to earn higher salaries than accountants who work in rural areas or in areas with a lower cost of living.
- Industry: The industry in which an accountant works can also affect their salary. For example, accountants who work in the public accounting sector tend to earn higher salaries than accountants who work in the private sector or in government.
It is important to note that these are just median salaries, and individual salaries may vary depending on a number of other factors, such as the size of the company, the specific job title, and the individual's skills and experience.
Lowest 10%: less than $45,560
The lowest 10% of accountants earned less than $45,560 in May 2021, according to the Bureau of Labor Statistics. This means that there are accountants who are working full-time and earning less than $22 per hour.
There are a number of factors that can contribute to an accountant earning a low salary. These factors include:
- Lack of experience: Accountants with less experience typically earn lower salaries. For example, an accountant with less than one year of experience may earn a salary of $40,000, while an accountant with five years of experience may earn a salary of $50,000 or more.
- Lack of education: Accountants with lower levels of education also tend to earn lower salaries. For example, an accountant with a bachelor's degree may earn a salary of $45,000, while an accountant with a master's degree may earn a salary of $55,000 or more.
- Location: Accountants who work in rural areas or in areas with a low cost of living tend to earn lower salaries than accountants who work in coastal cities or in areas with a high cost of living. For example, an accountant in New York City may earn a salary of $60,000, while an accountant in a small town in Iowa may earn a salary of $40,000.
- Industry: Accountants who work in the private sector or in government tend to earn lower salaries than accountants who work in the public accounting sector. For example, an accountant in a private company may earn a salary of $45,000, while an accountant in a public accounting firm may earn a salary of $55,000 or more.
It is important to note that these are just some of the factors that can contribute to an accountant earning a low salary. There may be other factors that are specific to an individual accountant's situation.
Highest 10%: more than $127,890
The highest 10% of accountants earned more than $127,890 in May 2021, according to the Bureau of Labor Statistics. This means that there are accountants who are working full-time and earning more than $60 per hour.
- Experience: Accountants with more experience typically earn higher salaries. For example, an accountant with 20 years of experience may earn a salary of $150,000, while an accountant with 30 years of experience may earn a salary of $200,000 or more.
- Education: Accountants with higher levels of education also tend to earn higher salaries. For example, an accountant with a master's degree may earn a salary of $130,000, while an accountant with a doctorate may earn a salary of $150,000 or more.
- Location: Accountants who work in coastal cities or in areas with a high cost of living tend to earn higher salaries than accountants who work in rural areas or in areas with a lower cost of living. For example, an accountant in San Francisco may earn a salary of $150,000, while an accountant in a small town in Kansas may earn a salary of $100,000.
- Industry: Accountants who work in the public accounting sector tend to earn higher salaries than accountants who work in the private sector or in government. For example, an accountant in a public accounting firm may earn a salary of $140,000, while an accountant in a private company may earn a salary of $120,000.
It is important to note that these are just some of the factors that can contribute to an accountant earning a high salary. There may be other factors that are specific to an individual accountant's situation.
Public accounting: higher salaries
Accountants who work in the public accounting sector tend to earn higher salaries than accountants who work in the private sector or in government. This is because public accounting firms typically charge higher fees for their services, and they are able to pass some of these fees on to their employees in the form of higher salaries.
- More complex work: Public accountants often work on more complex and challenging projects than accountants in the private sector or in government. This is because public accounting firms typically serve a wider range of clients, including large corporations and government agencies. As a result, public accountants need to have a strong understanding of accounting principles and a high level of technical skills.
- Greater responsibility: Public accountants also have greater responsibility than accountants in the private sector or in government. This is because public accountants are responsible for ensuring that their clients' financial statements are accurate and compliant with all applicable laws and regulations. As a result, public accountants need to exercise a high degree of professional judgment and ethics.
- Higher demand: There is a higher demand for public accountants than for accountants in the private sector or in government. This is because public accounting firms are constantly looking for talented accountants to help them meet the needs of their clients. As a result, public accountants are able to command higher salaries.
- Better benefits: Public accounting firms typically offer better benefits than private companies or government agencies. These benefits may include health insurance, dental insurance, vision insurance, retirement plans, and paid time off.
Overall, public accounting is a good career choice for accountants who are looking for a challenging and rewarding career with a high earning potential.
Private companies: lower salaries
Accountants who work in private companies typically earn lower salaries than accountants who work in the public accounting sector or in government. This is because private companies typically have lower budgets than public accounting firms and government agencies. As a result, they are not able to pay their accountants as much.
There are a number of other factors that can contribute to lower salaries for accountants in private companies. These factors include:
- Less complex work: Accountants in private companies often work on less complex and challenging projects than accountants in the public accounting sector or in government. This is because private companies typically have simpler accounting needs than public companies and government agencies.
- Less responsibility: Accountants in private companies also have less responsibility than accountants in the public accounting sector or in government. This is because private accountants are not responsible for ensuring that their clients' financial statements are accurate and compliant with all applicable laws and regulations.
- Lower demand: There is a lower demand for accountants in private companies than for accountants in the public accounting sector or in government. This is because private companies typically have smaller accounting departments than public accounting firms and government agencies.
- Fewer benefits: Private companies typically offer fewer benefits than public accounting firms and government agencies. These benefits may include health insurance, dental insurance, vision insurance, retirement plans, and paid time off.
Overall, private accounting is a good career choice for accountants who are looking for a less stressful and demanding career with a lower earning potential.
Government agencies: lower salaries
Accountants who work in government agencies typically earn lower salaries than accountants who work in the public accounting sector or in private companies. This is because government agencies are typically subject to strict budget constraints.
- Less complex work: Accountants in government agencies often work on less complex and challenging projects than accountants in the public accounting sector or in private companies. This is because government agencies typically have simpler accounting needs than public companies and private companies.
- Less responsibility: Accountants in government agencies also have less responsibility than accountants in the public accounting sector or in private companies. This is because government accountants are not responsible for ensuring that their clients' financial statements are accurate and compliant with all applicable laws and regulations.
- Lower demand: There is a lower demand for accountants in government agencies than for accountants in the public accounting sector or in private companies. This is because government agencies typically have smaller accounting departments than public accounting firms and private companies.
- Fewer benefits: Government agencies typically offer fewer benefits than public accounting firms and private companies. These benefits may include health insurance, dental insurance, vision insurance, retirement plans, and paid time off.
Overall, government accounting is a good career choice for accountants who are looking for a stable and secure career with a lower earning potential.
Location matters: coastal cities pay more
Accountants who work in coastal cities typically earn higher salaries than accountants who work in rural areas or in areas with a lower cost of living. This is because coastal cities are home to a large number of businesses and organizations, which creates a higher demand for accountants.
- Higher cost of living: Coastal cities typically have a higher cost of living than rural areas or areas with a lower cost of living. This means that accountants who work in coastal cities need to earn higher salaries in order to maintain a similar standard of living.
- More job opportunities: Coastal cities typically have more job opportunities for accountants than rural areas or areas with a lower cost of living. This is because coastal cities are home to a large number of businesses and organizations, which creates a higher demand for accountants.
- More competition: Coastal cities typically have more competition for accounting jobs than rural areas or areas with a lower cost of living. This is because there are more accountants looking for jobs in coastal cities, which can drive up salaries.
- Better benefits: Accountants who work in coastal cities typically have access to better benefits than accountants who work in rural areas or areas with a lower cost of living. These benefits may include health insurance, dental insurance, vision insurance, retirement plans, and paid time off.
Overall, coastal cities are a good place for accountants to find high-paying jobs with good benefits. However, accountants need to be prepared for the higher cost of living in coastal cities.
Experience and education boost salary
Accountants with more experience and education typically earn higher salaries than accountants with less experience and education. This is because employers value the skills and knowledge that accountants gain through experience and education.
- Experience: Accountants with more experience typically earn higher salaries because they have a deeper understanding of accounting principles and a wider range of skills. They are also more likely to be able to take on more challenging and complex projects.
- Education: Accountants with higher levels of education typically earn higher salaries because they have a stronger foundation in accounting principles and a more comprehensive understanding of the field. They are also more likely to be able to pass the CPA exam, which is a valuable credential for accountants.
- Continuing education: Accountants who continue their education by taking courses or attending conferences can also boost their salary potential. This is because continuing education helps accountants to stay up-to-date on the latest accounting trends and developments.
- Certifications: Accountants who earn professional certifications, such as the CPA or CMA, can also boost their salary potential. This is because certifications demonstrate an accountant's commitment to the profession and their willingness to go above and beyond the minimum requirements.
Overall, accountants who are looking to increase their earning potential should focus on gaining experience, education, and certifications.
FAQ
Have more questions about how much accountants make? Here are some frequently asked questions:
Question 1: What is the average salary for accountants?
Answer: The median annual wage for accountants in the United States was $73,300 in May 2021, according to the Bureau of Labor Statistics.
Question 2: What are the highest-paying industries for accountants?
Answer: Accountants who work in the public accounting sector, the finance and insurance industry, and the management of companies and enterprises typically earn the highest salaries.
Question 3: What are the highest-paying states for accountants?
Answer: Accountants who work in California, New York, Massachusetts, and Texas typically earn the highest salaries.
Question 4: How can I increase my earning potential as an accountant?
Answer: You can increase your earning potential by gaining experience, education, and certifications. You can also try to work in a high-paying industry or location.
Question 5: What are some of the benefits of being an accountant?
Answer: Accountants enjoy a number of benefits, including a high salary, job security, and opportunities for advancement.
Question 6: What are some of the challenges of being an accountant?
Answer: Accountants may face challenges such as long hours, stressful deadlines, and the need to stay up-to-date on the latest accounting standards.
Question 7: Is accounting a good career choice?
Answer: Accounting is a good career choice for people who are interested in math, business, and finance. Accountants enjoy a high salary, job security, and opportunities for advancement.
Closing Paragraph for FAQ: These are just a few of the frequently asked questions about how much accountants make. If you have any other questions, you can consult with a career counselor or an accountant.
Now that you know more about how much accountants make, you can start to think about how you can increase your earning potential. Here are a few tips:
Tips
Here are a few tips for increasing your earning potential as an accountant:
Tip 1: Gain experience.
The more experience you have, the more valuable you will be to potential employers. You can gain experience by working in a public accounting firm, a private company, or a government agency. You can also volunteer your accounting services to a non-profit organization.
Tip 2: Get a higher level of education.
Accountants with a bachelor's degree typically earn higher salaries than accountants with only an associate's degree. Accountants with a master's degree typically earn even higher salaries. If you are looking to increase your earning potential, consider getting a higher level of education.
Tip 3: Earn professional certifications.
Earning professional certifications, such as the CPA or CMA, can also help you to increase your earning potential. These certifications demonstrate your commitment to the accounting profession and your willingness to go above and beyond the minimum requirements.
Tip 4: Network with other accountants.
Networking with other accountants can help you to learn about new job opportunities and to stay up-to-date on the latest accounting trends. You can network with other accountants by attending industry events, joining professional organizations, and connecting with accountants on LinkedIn.
Closing Paragraph for Tips: By following these tips, you can increase your earning potential as an accountant. Remember, the more experience, education, and certifications you have, the more valuable you will be to potential employers.
Now that you know how to increase your earning potential as an accountant, you can start to think about your career goals. What kind of accounting job do you want? Where do you want to work? Once you know what you want, you can start to take steps to achieve your goals.
Conclusion
How much do accountants make? The answer to this question depends on a number of factors, including experience, education, location, and industry. However, the median annual wage for accountants in the United States was $73,300 in May 2021, according to the Bureau of Labor Statistics.
Accountants with more experience and education typically earn higher salaries than accountants with less experience and education. Accountants who work in coastal cities or in the public accounting sector also tend to earn higher salaries than accountants who work in rural areas or in the private sector or in government.
If you are interested in a career in accounting, there are a number of things you can do to increase your earning potential. These include gaining experience, getting a higher level of education, earning professional certifications, and networking with other accountants.
Closing Message: With hard work and dedication, you can achieve your career goals and earn a high salary as an accountant.