Certified Public Accountants also known as the Financial Wizards are among the highly paid professionals across industries. Holding a CPA license makes accountants soar in their earnings and career advancements. In this blog, we are revealing the lucrative landscape of CPA salaries, and see how numbers come alive with potential!
What is the potential of a CPA certification in the US?
Before discussing the high salary prospects of CPAs, it’s essential to recognize why they deserve a lucrative salary.
A CPA certification in the US holds immense potential, unlocking a world of career opportunities in accounting, finance, and beyond. With specialized skills in taxation, financial analysis, and auditing, CPAs are sought after by businesses and individuals for their expertise.
This prestigious designation offers a pathway to higher earning potential, job security, and the chance to make a significant impact in the accounting world.
The existing shortage of accountants in the US has become a major issue. This shortage is causing several problems for US accounting companies and states. For example, accounting companies are having difficulty finding qualified staff, which is leading to increased workloads for existing employees. States are also facing challenges, such as difficulty meeting financial reporting requirements and increased risk of fraud.
Hence, CPAs are in high demand in the US as they play an essential role in ensuring the financial health of businesses and organizations.
How much does a licensed CPA earn in the US?
The average salary for a licensed CPA in the US is $119,000 per year. However, the salary range can vary depending on experience, location, and industry. For example, CPAs with less than one year of experience earn an average of $60,000 per year, while CPAs with more than 20 years of experience earn an average of $150,000 per year.
Popular Jobs and Industries for CPAs:
Here are some of the most popular jobs and industries for CPAs:
- Public accounting: Public accountants work for accounting firms, providing auditing, tax, and consulting services to businesses and individuals. The Big 4 (Deloitte, EY, PwC, and KPMG) comes under such firms. This is a great option for people who enjoy working with numbers and who are good at problem-solving.
- Corporate accounting: Corporate accountants work for businesses, providing accounting, financial reporting, and tax services. This is a good option for people who want to work in a specific industry and who want to have a more stable career.
- Government accounting: Government accountants work for government agencies, providing accounting, auditing, and financial reporting services. This is a good option for people who are interested in public service and who want to work on a variety of projects.
- Nonprofit accounting: Nonprofit accountants work for nonprofit organizations, providing accounting, financial reporting, and tax services. This is a good option for people who are passionate about helping others and who want to work in a fast-paced environment.
Here is a table that shows the average salary for CPAs in different industries:
Source: Bureau of Labour Statistics
As per the Bureau of Labour Statistics, the salary for CPAs can also vary depending on location. For example, CPAs in New York City earn an average of $135,000 per year, while CPAs in Oklahoma City earn an average of $95,000 per year.
Addressing the Accountant Shortage:
The shortage of accountants in the US has created a pressing need for CPAs. This shortage has several consequences, including:
- Increased Workloads: Accounting firms are struggling to find qualified staff, resulting in higher workloads for existing employees.
- Financial Reporting Challenges: States and businesses are finding it challenging to meet financial reporting requirements due to the shortage of skilled accountants.
- Risk of Fraud: The lack of qualified accountants can increase the risk of financial fraud and mismanagement within organizations.
CPAs: The Solution to the Shortage
CPAs are instrumental in addressing these challenges by providing their expertise in accounting, auditing, and financial reporting. They play a crucial role in ensuring the financial health and integrity of businesses and organizations, making their services indispensable.
Variability in CPA Salaries:
While the average salary for CPAs in the US is $119,000 per year, it’s important to note that salaries can vary significantly based on several factors:
- Experience: CPAs with less than one year of experience may earn around $60,000 per year, whereas those with over 20 years of experience can command an average of $150,000 per year.
- Location: Salaries for CPAs differ based on location. For example, CPAs in New York City tend to earn an average of $135,000 per year, while those in Oklahoma City may earn around $95,000 per year.
- Industry: CPAs working in different industries, such as public accounting, corporate accounting, government accounting, or nonprofit accounting, may have varying salary ranges based on the complexity of their roles and the demands of the sector.
Overall, the salary for a licensed CPA in the US is very competitive. CPAs with the right skills and experience can earn a high salary in a variety of industries.