According to the U.S. Bureau of Labor Statistics 2022 report, the average CPA salary is $122,000 per year. This annual salary depends largely on your position, experience level, firm size, and section.
Every organization and business, whether it’s a start-up or a well-established firm, needs a Certified public accountant. The demand for CPAs’ services are always high regardless of the economic climate. As a result, accountant salaries and compensation packages have steadily increased year over year with more career stability than ever before.
But before you get too excited about how much money CPAs make, there are a few factors that influence the national average CPA compensation plan that you should know. Let’s examine the factors influence Certified Public Accountant pay, so you can see how much you might make when you become a CPA.
Key Takeaways
- The average Certified Public Accountant salary is approximately $122,000 per year in the US
- A CPA license will increase your annual salary approximately 15 percent
- CPA salaries depend largely on your experience, position, company size, industry, and location
What is the Average CPA Salary & How Much do Accountants Make?
According to the 2023 Robert Half Accounting & Finance Salary Guide, the average CPA salary is $122,000 per year which is a 2.3%-5.8% increase from the previous reporting year. Additionally, the average starting salary for accountants in the US is between $40,000 – $57,500 according to the Bureau of Labor Statistics May 2022 report.
The pay scales vary greatly based on several factors like location, firm size, and experience.
Key Factors Affecting CPA Salaries
Like other professions, accountant pay can vary greatly. So, before we can talk about specific salaries and compensation plans, we have to look at why CPA salaries fluctuate so much.
The main five factors that influence how much a Certified public accountant gets paid are:
- Experience Level
- Industry/Sector
- Company/Firm Size
- Public Accounting vs Private Accounting
- Geographical Location
Let’s take a look at each of these factors to see how you can use them to increase your salary.
Experience Level
While applying for the first time to an accountant’s post, your experience is counted in the quality of grades, school, the esteem of the internships, and other related extracurricular activities.
The prerequisite for most states is of two years, at least, of experience in public accounting before crossing the eligibility of a candidate to get the post of a CPA. At the stage of a junior accountant, one may be preparing to get certified as a CPA or is already a CPA.
Industry/Sector
The first major verdict a fresher takes is to choose between public/corporate or private/management accounting. However, a certified public accountant can work in either of the sectors. Both the sectors’ accountants are well-remunerated, but in spite of it, the public accountants are paid slightly more than their private counterparts. Also, certified public accountants make 10–15% more income annually than non-certified ones.
Company/Firm Size
Large companies pay more to attract talent. The more assets and employees a company has, or the more customers they cater to, the more intricate accounting job descriptions become. This, in turn, gets reflected in the salaries of the accountants.
Public Accounting vs Private Accounting
Public accounting and private accounting are two completely different career paths. Public accountants work for public accounting firms to service large companies performing auditing functions and tax compliance work. Private accountants, on the other hand, work directly for companies as internal accountants doing accounting, strategic planning, and controlling activities.
Although both public and private accountants can be certified, they have very different jobs that pay much different salaries.
Geographical Location
Location plays a big role in how much a CPA earns. For instance, a CPA in California makes on average $96,210 while a CPA in Georgia makes $86,200, according to the Bureau of Labor Statistics May 2022 report. Different parts of the country have different standards of living. As a result, the salaries fluctuate accordingly.
As per the Bureau of Labor Statistics, California ($88,130), Texas ($80,170), Pennsylvania ($77,810), Florida ($74,960), and New York ($101,440) are the highest paying states and employers in the USA. These are just figures reflecting accountant payrolls, not the CPAs.
Now that we have an idea of what influences salary plans, let’s look at the numbers.
Certified Public Accountant Salary Guide
The base salary for CPAs is $81,500 as of 2021. Nevertheless, as per the American Institute of CPAs and Accounting Today, senior-level CPAs can earn more than $150,000.
Plus, the experience of CPA can lead an individual to take up other work options, such as that of a certified financial officer or a company comptroller.
CPA Salaries in Public Accounting Firms
Certified public accountants who work in public accounting work for CPA firms. Larger firms typically pay more top CPA talent than smaller firms.
Thus, a licensed CPA at a Big Four firm will likely make more than a CPA at a smaller regional firm. Let’s look at the salary figures for CPAs in public accounting based on their job.
Public Accountant Salary
Audit/Assurance Services
CPAs who work in audit or assurance services typically perform audit functions for companies that need their financial statements examined for investors or creditors.
These functions include financial statement, internal control, compliance, operational, forensic, and performance audits.
Here are the most current auditor salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
| Audit & Assurance CPA Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Entry-Level | $41,000 | $50,500 | $58,000 |
| 1-3 Years Experience | $46,000 | $56,750 | $64,500 |
| Senior | $55,000 | $68,750 | $78,750 |
| Manager/Director | $77,000 | $96,250 | $110,250 |
| Senior Manager/Director | $113,000 | $139,750 | $162,000 |
Tax Services
Certified public accountants perform tax services for small and large companies, individuals, trusts, and non-profit organizations every year. These services range from preparing income and sales tax returns to complying with quarterly and unemployment insurance reporting.
Larger public accounting firms typically do not take on smaller accounts and only work on larger company returns and tax compliance issues.
Here are the most current tax accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
Tax Accountant Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Entry Level | $45,250 | $56,500 | $65,250 |
| 1-3 Years Experience | $61,500 | $76,000 | $87,250 |
| Senior | $75,500 | $93,250 | $108,250 |
| Manager | $95,750 | $113,250 | $132,000 |
| Senior Manager/Director | $115,000 | $147,500 | $174,000 |
CPA Salaries in Private Accounting
Pay scale for accountants in private accounting is much different than in public firms. This is largely due to the fact that they provide different levels of service.
Private accountants work for a single company and provide internal accounting services ranging from preparing financial statements, budgeting and forecasting operations, controlling supply chain activities, and more.
They also work with external accountants like auditors and tax preparers to provide the necessary documents for annual reports.
Private Accountant Salary
Financial Reporting Accountants
Financial reporting accountants work with the accounting staff to prepare financial statements based on the company bookkeeping records. These accountants are responsible for presenting accurate financials to investors and creditors when needed.
Thus, they must be current on new laws and regulations for reporting requirements and revenue recognition policies.
Here are the most current financial reporting accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
| Financial Reporting Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Entry Level | $51,750 | $64,000 | $74,250 |
| 1-3 Years Experience | $62,000 | $77,000 | $90,000 |
| Senior | $74,750 | $88,000 | $102,000 |
| Manager* | $98,750 | $121,000 | $143,000 |
General Accounting Accountants
General accountants work as internal accounting professionals preparing financial statements and budgeting reports for the company. They work closely with the controller to forecast budgets and revenue numbers to make sure the company mights it obligations. They also typically provide some level of tax services on an internal basis.
Here are the most current GAAP accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
| General Accounting Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Entry Level | $40,250 | $51,000 | $57,750 |
| 1-3 Years Experience | $51,250 | $66,750 | $76,750 |
| Senior | $66,500 | $84,000 | $95,750 |
| Manager | $79,750 | $99,000 | $114,250 |
Financial Analysis Accountants
Financial analysis accountants work with businesses to identify trends in earnings and performance by examining their financial statements. Companies often hire financial analyst accountants to help them forecast future activities and understand what problems they may see in their business model.
Here are the most current financial analysis accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
| Financial Analysis Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Entry Level | $45,000 | $55,500 | $64,000 |
| 1-3 Years Experience | $57,500 | $72,000 | $83,000 |
| Senior | $71,000 | $88,500 | $102,250 |
| Manager | $88,500 | $109,250 | $127,000 |
| Director | $110,250 | $139,000 | $158,750 |
Internal Audit Accountants
Internal auditors examine the business processes and internal controls of a company in an attempt to safeguard assets and mitigate risk. They also evaluate how the company follows with existing laws and regulations to make sure they are in compliance.
Here are the most current internal audit accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
| Internal Auditor Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Entry Level | $40,750 | $49,750 | $58,000 |
| 1-3 Years Experience | $61,000 | $76,000 | $88,750 |
| Senior | $78,500 | $93,500 | $110,000 |
| Manager | $101,250 | $120,500 | $141,750 |
| Senior Manager/Director | $132,750 | $191,500 | $220,000 |
IT Audit Accountants
IT auditors specifically assess the technologies of a company to secure its assets and limit possible risk. They audit the servers, data centers, and processes which data is transferred within the company to make sure the company’s information and intellectual property is secure.
Here are the most current IT audit accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
| IT Audit Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Entry Level | $44,500 | $55,750 | $64,000 |
| 1-3 Years Experience | $64,750 | $82,250 | $96,000 |
| Senior | $79,500 | $99,000 | $115,000 |
| Manager | $103,000 | $127,000 | $146,000 |
SEC Financial Reporting Accountants
SEC reporting is complex and typically can’t be handled solely by public accounting firms. Thus, many publicly traded companies hire internal accountants to work with public firms to prepare the financial statements required by the SEC. These accountants often research and implement new accounting standards before the public accounting firm even sees the data.
Here are the most current SEC financial reporting accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.
| SEC Financial Reporting Salary | 25th Percentile (New Hire) | 50th Percentile (Average Experience) | 75th Percentile (Above Average Experience) |
|---|---|---|---|
| Analyst | $71,000 | $87,500 | $101,250 |
| Manager | $97,500 | $120,000 | $138,750 |
| Director | $120,000 | $147,500 | $171,000 |
CPA Salary by Experience Level
CPA salaries vary greatly based on experience level. As you gain more knowledge and skills throughout your career, accounting firms are able to pay you more for your services. Let’s look at the pay ranges for each accountant experience level.
Entry Level
As per the Accounting Today magazine, the entry-level CPAs make anything between $40,000 and $60,000, based on the magnitude of the company.
Mid-Level / Junior Level
A junior CPA takes 1–3 years of experience and earns approximately $57,500 to $88,500.
Senior Level
An experienced CPA of five years or more can expect to get paid between $66,000 and $110,000, based on their experience.
Manager Director Level
Accounting Today has reported that the CPAs who get promoted to the management level or become directors often hold a salary of $66,000 to $150,000. Other posts for veteran CPAs are positions in executive management. This can fetch them a six-figure salary.
As per the US Bureau of Labor Statistics, the median pay was between $107,680 for chief executives in 2020.
Does Geographical Location Affect CPA Salary?
Yes, geographical location is another factor that influences average certified public accountant salaries in the US.
Larger cities with a higher cost of living typically have higher average salaries than smaller cities. The demand for CPA and accounting professionals in general is also higher in bigger cities adding to the pay gap.
What is the average CPA Salary by State?
Here is a table that shows the average CPA salary in each state based on the Bureau of Labor Statistics May 2022 report:
| State | Annual CPA Salary |
|---|---|
| Alabama | $74,520.00 |
| Alaska | $81,820.00 |
| Arizona | $82,130.00 |
| Arkansas | $70,660.00 |
| California | $96,210.00 |
| Colorado | $87,360.00 |
| Connecticut | $87,620.00 |
| Delaware | $84,620.00 |
| District of Columbia | $110,750.00 |
| Florida | $80,200.00 |
| Georgia | $86,220.00 |
| Guam | $47,860.00 |
| Hawaii | $72,790.00 |
| Idaho | $71,130.00 |
| Illinois | $84,010.00 |
| Indiana | $76,840.00 |
| Iowa | $72,130.00 |
| Kansas | $75,070.00 |
| Kentucky | $73,360.00 |
| Louisiana | $70,780.00 |
| Maine | $77,660.00 |
| Maryland | $88,440.00 |
| Massachusetts | $95,830.00 |
| Michigan | $79,830.00 |
| Minnesota | $83,450.00 |
| Mississippi | $68,040.00 |
| Missouri | $77,070.00 |
| Montana | $73,810.00 |
| Nebraska | $74,320.00 |
| Nevada | $68,980.00 |
| New Hampshire | $81,310.00 |
| New Jersey | $102,040.00 |
| New Mexico | $71,940.00 |
| New York | $110,320.00 |
| North Carolina | $85,710.00 |
| North Dakota | $69,620.00 |
| Ohio | $77,760.00 |
| Oklahoma | $77,620.00 |
| Oregon | $80,330.00 |
| Pennsylvania | $78,780.00 |
| Puerto Rico | $41,650.00 |
| Rhode Island | $94,530.00 |
| South Carolina | $72,820.00 |
| South Dakota | $72,990.00 |
| Tennessee | $73,360.00 |
| Texas | $87,300.00 |
| Utah | $77,260.00 |
| Vermont | $81,790.00 |
| Virgin Islands | $56,880.00 |
| Virginia | $89,180.00 |
| Washington | $90,530.00 |
| West Virginia | $71,490.00 |
| Wisconsin | $77,500.00 |
| Wyoming | $74,000.00 |
Highest Average Accountant Salary by State
The Bureau of Labor Statistics May 2022 reports the states with the highest average accountant salaries are Washington DC, New York, New Jersey, Massachusetts, and California. Here is a table that shows the salaries for each state.
| State | Mean Accountant / Auditor Salary | Number of Accounting / Auditing Jobs |
|---|---|---|
| District of Columbia | $110,140 | 10,050 |
| New York | $101,440 | 112,360 |
| New Jersey | $96,260 | 39,060 |
| Massachusetts | $88,830 | 34,710 |
| California | $88,130 | 150,050 |
Highest Average Accountant Salary by Metropolitan Areas
According to the Bureau of Labor Statistics May 2022 report, the Metro Areas with the highest average accountant salaries are Salinas, New York City, Midland, San Jose, and San Francisco.
Below is a table that shows each the salary for each of the five Metros with the highest average accountant salary.
| Metro Area | Mean Accountant / Auditor Salary | Number of Accounting / Auditing Jobs |
|---|---|---|
| Salinas, CA | $111,680 | 690 |
| New York-Newark-Jersey City, NY-NJ-PA | $105,720 | 119,910 |
| Midland, TX | $103,120 | 1,610 |
| San Jose-Sunnyvale-Santa Clara, CA | $102,920 | 15,360 |
| San Francisco-Oakland-Hayward, CA | $101,090 | 24,510 |
Non-Certified Accountant Salaries
Entry Level:
For a fresher or till 3 years of experience, a non-certified accountant earns approximately $31,000 to $66,000.
Mid-Level / Junior Level:
It takes 4–6 years of experience for a non-certified accountant to take home $59,000 to $98,000
Senior Level:
More than 6 years in the industry fetches a person a senior position with a salary ranging between $72,000–$1,52,000.
What Does A CPA Do?
CPAs, basically, keep and examine financial accounts for government bodies, individual customers, and companies. Private or corporate accountants do not need a CPA license. It is required for public accountants, who either work for companies that offer accounting assistance to others or work independently.
Some CPAs opt for specialization in areas such as financial analysis, information technology audition, internal auditing, management accounting, and tax accounting. This, in turn, adds value to their CV and enhances their opportunity of getting hired.
Job Description / Duties
A CPA is responsible for supporting organizations, corporations, or individuals in tax statement filing and financial planning. They are responsible for overseeing audits, studying and maintaining financial records (digital/physical), coordinating with state/federal/local, and individuals for income tax planning (research, filing, and other budgeting procedures).
Where Do CPAs Work?
The CPAs work in the mentioned sectors:
Public Sector
The CPAs in public accounting are responsible for managing, planning, recording, and advising businesses, individuals, and non-profit in tax, consulting, auditing to achieve their financial goals.
Corporate
CPAs in corporate provide accounting, auditing, maintaining records of financial transactions, and preparing taxes.
Companies
The company CPAs provide all the accounting services as mentioned before along with potential issues or forecasts and advise whether the risk can be taken or not.
Government Jobs
The accounting posts in the government work get a worthwhile median yearly salary of $72,260. Around 8% of all the auditors and accountants worked in the government sector in 2020.
Frequently Asked Questions
Can I make $100k as a CPA?
Yes, CPAs with at least 5 years experience in mid-to-large accounting firms consistently make over $100,000 per year. Depending on your location and position, you may reach the $100k salary threshold before your 5th year of employment according to the AICPA Career Insight Study.
What CPA gets paid the most?
Senior directors and partners are the highest paid CPAs in public accounting with salaries over $200,000 per year. Certified public accountants also work in the executive suite of companies as CFO and COO with salaries ranging from $200,000 to $1M+.
