An accountant is a financial professional who records and inspects finances. So how much do they make? The quick response is $55,000 to $95,000 per year, but with great variability depending on certifications, company size, type of accounting, etc. Read on to learn more about what YOU need to know about accountant jobs and salary.
What an accountant does
An accountant manages the financial health of a business. Accountants track ingoing and outgoing funds, monitor savings and debt levels, file taxes, and ensure compliance. U.S. News reports that accountants use a broad set of skills and characteristics to perform daily tasks.
Accountant responsibilities may include:
- Compute money going in and out
- Create and review statements for accuracy
- Send invoices
- Disburse funds
- Utilize accounting software and maintain financial information
- Prepare taxes and complete returns
- Monitor budgets
- Suggest financial practices to maximize revenue, decrease costs
- Communicate with clients
Types of accounting jobs
Accountants come in all shapes and sizes—professionally speaking. Depending on certifications, industries, education, and experience, accountant best practices may vary. The client or business in question may require a specific brand of accounting for best practices.
Public accountant
Description: Accounting, taxes, and auditing for general purpose business & individuals
Education/Certification: Bachelor’s Degree, CPA Certification preferred
Management accountant (AKA Private Accountant or Internal Accountant)
Description: In-house accountants who provide accounting and analysis for internal management
Education/Certification: Bachelor’s Degree, CMA Certification
Auditor
Description: Risk analysis of business funds, finding and eliminating financial waste (may consult or operate in-house)
Education/Certification: Bachelor’s Degree, CPA Certification
Forensic accountant
Description: Uncover fraud, noncompliance, illegal activity, omissions, etc.
Education/Certification: Bachelor’s Degree, CFE Certification
As a financial professional, it’s critical to classify accountant roles appropriately both for certification and compensation. Be certain that job descriptions, resumes, and trainings are tailored to the accounting job in question.
Accountants may want to consider adding certifications to increase their earning potential and qualify themselves for more job opportunities in the future.
How much do accountants make?
In addition to many perks of a secure job, accountants can expect to make a favorable salary. An accountant salary can vary widely, but the general range is between $55,000 and $95,000, according to the Bureau of Labor Statistics.
As a controller or Chief Financial Officer, you may be wondering if you’re paying your accounting staff correctly according to market value and skill. As an accountant or prospective accountant, you may be interested in the compensation for particular accounting roles.
Factors that may influence an accountant’s salary are:
- Location & cost of living
- Industry
- Experience
- Education
- Certifications
- Number of clients
- Number of direct reports
- Size of the company
- Compensation packages—benefits, stock options, etc.
To get a more specific idea for a potential accounting salary you can search various accounting roles and adjust some of these factors. Although hypothetical, the estimate can help you make decisions about financial jobs and negotiations.
Accountant salary breakdown
- Bookkeeper: $30,000
- Entry Level Accountant: $40,000
- Tax Accountant: $55,000
- Certified Public Accountant (CPA): $62,000
- Certified Internal Auditor: $65,000
- Financial Accountant (4-6 years experience): $80,000
- Big Four Firm Accountant: $90,000+
- Senior Accountant (7+ years experience): $100,000
- MBA Accountant/Accounting Director: $125,000
Accounting certifications are usually earned through a brief study course and certification test, once a college accounting degree is obtained. According to Robert Half, certifications can range from a few hundred dollars in cost to $40,000+ depending on the level of complication, but most certifications will prove to be worth the increase in salary.
Often a controller or Chief Financial Officer will encourage accountants to receive further certifications by covering the cost of continuing education or even offering in-house training to prepare accountants for certification exams. This could be an excellent option for your organization that will keep stellar candidates sharp and loyal to your business, as well as motivating interested accountants who may otherwise be unwilling or unable to dedicate the time and money to extra certifications.
What accountants can expect
While accounting can sometimes get a bad rap (think: bean counter), it’s actually one of the smartest, safest job fields. Accountants enjoy many benefits and regular perks that make cost analysis and tax-filing even more fulfilling. And of course, as with any job there are potential drawbacks as well.
Pros of accounting
- Above average salary
- Consistently positive job security
- Growing job outlook (read: more options and competitive benefits)
- Standard work hours, outside of tax season
- Diverse options for continuing education
- Flexibility to work for yourself
- Increasing salary trajectory
Cons of accounting
- Entry level competition—getting that first accounting job can be challenging
- Difficult detail work
- Need for additional certifications to succeed
- Seasonal overtime (tax season!)
- Repetitive office work
Accountants in a successful business should enjoy generous compensation, opportunities for continuing education, an upward career path, and stable organization. A healthy accounting department is vital for the overall success of your business, regardless of other factors, so be sure to invest time and resources to find and create accounting jobs that fairly compensate to attract the very best candidates for your organization.
Other financial career salaries and resources
- How much does a CFO make?
- How much does a CMA make?
- How much does a controller make?
- How much does a CPA make?
- How much does a financial analyst make?
- How much does a treasury analyst make?
- How much does a Vice President of Finance make?
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