Average Salary for CPA: A Comprehensive Overview

In the finance and accounting industry, the Certified Public Accountant (CPA) role is often cited as a pinnacle of the profession. Its prestige and recognition are justified due to the role’s challenging requirements and responsibilities. Due to this recognition, a lot of individuals are drawn to pursue the CPA certification and achieve this esteemed position.

Nonetheless, it is not the prestige alone that attracts aspiring accountants; it is also the monetary benefits of the job. The CPA role usually guarantees a higher salary compared to other jobs in the industry. But one might ask, what really is the average salary for a CPA?

The CPA Salary: An Average Overview

In the United States, a certified public accountant’s average salary varies substantially depending on factors like geographical location, years of experience, industry, and company size. However, according to the U.S. Bureau of Labor Statistics, the median wage for accountants, which includes CPAs, was approximately $73,560 per year as of May 2020.

This value, though, is an average that encompasses all accountants, including those who are not CPAs. CPA salaries specifically are reported to be higher when compared to the average accounting salaries, and the premium for the certification can be substantial.

Below are three main elements impacting a CPA’s salary:

Geographical Location

Salaries largely depend on the living cost of a region. Typically, urban areas and states with higher living costs possess higher CPA salaries. For example, states such as New York, New Jersey, and California, which have higher living costs than many other states, also have some of the highest CPA salaries in the country.

Years of Experience

As with any job, the amount of experience a CPA has plays a significant role in their salary. Generally, the more experienced a CPA, the higher the salary. It is also notable that CPAs with more than 20 years of experience may earn almost twice as much as those who are still in their first few years in the profession.

Business Size and Industry

Another significant determinant of a CPA’s salary is the size of the business and the industry they work in. CPAs working in public companies or multinational corporations can expect higher salaries than those working in small firms or non-profit organizations. High-risk industries usually offer a higher CPA salary to compensate for the complexity of the job.

In contemporary work culture, many organizations utilize employee check in/check out solutions to streamline their operations and manage their employees effectively. CPAs, being part of the strategic management of many companies, often oversee the effectiveness of such systems. By understanding these solutions’ financial impacts, CPAs can advise the management regarding cost-efficiency, ROI, and overall investment value. Being fluent in these systems not only brings additional value to their role but could also potentially boost their salary parameters.

To wrap up, the CPA role is one with multiple benefits, including prestige, recognition, and competitive salary. It is a challenging yet rewarding path that opens doors to diverse career opportunities and financial stability. When making considerations for this career path, ensure you take into account these core salary determining factors to get a finer idea of what you can realistically expect.