How Much Money Does an Accountant Make? | Salary, Benefits, and Career Growth

Introduction

Accountants are in high demand in business and finance, providing essential services to organizations across a variety of industries. If you’re looking to pursue a career in accounting, you may be wondering how much money you can expect to make as an accountant. This article looks at the average salaries for accountants across different industries, as well as the factors that influence these salaries over time. We also explore the potential earnings for an individual accountant, including bonuses and benefits, and how education and geographic location affect salary levels. Finally, we review the benefits that accompany accountant salaries.

Examining the Average Salaries of Accountants by Industry

The Bureau of Labor Statistics (BLS) reports that the median annual wage for all accountants and auditors was $71,550 in 2019. However, salaries vary widely depending on the industry in which an accountant works. Here, we look at the salaries of accountants working in some of the most common industries.

Accounting and Auditing Services

Accountants in this field are responsible for preparing financial records, interpreting financial information, and providing advice on financial matters. According to the BLS, the median annual wage for accountants employed by accounting and auditing services was $76,820 in 2019. The top 10 percent earned more than $124,450 per year.

Tax Preparation and Financial Planning

Tax preparers and financial planners provide services related to taxes, investments, and estate planning. The BLS reported that the median annual wage for accountants in this field was $62,850 in 2019. The top 10 percent earned more than $109,000.

Banking and Investment Services

Accountants in this sector often specialize in areas such as investments, banking, or securities trading. The BLS reported a median annual wage of $73,150 for accountants employed by banking and investment services in 2019. The top 10 percent earned more than $120,430.

Other Industries

Accountants may also work in other industries such as insurance, manufacturing, or government. The BLS reported a median annual wage of $68,350 for accountants employed in these industries in 2019. The top 10 percent earned more than $111,540.

Investigating Trends in Accountant Salaries Over Time

Salaries for accountants have changed over time due to a variety of factors. Here, we examine some of the major influences on accountant salaries.

Overall Changes in Salary Levels

In general, salaries for accountants have increased over time. According to the BLS, the median annual wage for all accountants and auditors was $60,240 in 2010 and had increased to $71,550 in 2019. This represents a 19 percent increase in wages over the past decade.

Impact of Technological Advances on Salaries

The proliferation of technology has had a major impact on the accounting profession. Automation has enabled accountants to streamline processes and increase efficiency, leading to higher salaries for those with advanced technical skills. Additionally, many employers now require accountants to be proficient in software such as Excel and QuickBooks, which can also lead to higher salaries.

Influences from the Economic Environment

Changes in the economy can also affect accountant salaries. For example, during periods of economic growth, there is often an increased demand for accountants. This can lead to higher salaries, as employers compete for talent. Conversely, during recessions, demand for accountants may decrease, resulting in lower salaries.

Calculating the Potential Earnings for an Accountant

When calculating the potential earnings for an accountant, several factors must be taken into consideration. Here, we look at how base salaries, incentive pay structures, and bonuses and benefits can affect an accountant’s total compensation.

Determining Base Salaries

Base salaries for accountants are typically determined by the size of the employer, the industry in which they work, and the accountant’s level of experience. Generally, larger employers tend to offer higher salaries, while smaller employers may offer lower salaries. Additionally, salaries can vary significantly depending on the industry in which an accountant works.

Exploring Incentive Pay Structures

In addition to base salaries, many employers offer incentive pay structures to reward employees for meeting certain goals. These incentives can include bonuses, commissions, or stock options. Incentives can be an effective way to increase overall earnings.

Estimating Bonuses and Benefits

Bonuses and benefits can also have a significant impact on an accountant’s total compensation. Common benefits for accountants include health insurance, retirement plans, and paid leave. Bonuses can also be awarded for outstanding performance. In some cases, bonuses can double an accountant’s salary.

Exploring the Relationship Between Education and Salaries for Accountants

Education is another important factor that can influence an accountant’s salary. Here, we look at some of the educational requirements for accountants.

Bachelor’s Degree Requirements

Most employers require accountants to have a bachelor’s degree in accounting or a related field. A bachelor’s degree not only provides the knowledge and skills necessary to perform accounting tasks, but it can also lead to higher salaries. According to the BLS, the median annual wage for accountants with a bachelor’s degree was $72,500 in 2019.

Master’s Degree Options

Accountants who wish to further their education may choose to pursue a master’s degree in accounting. This can open up additional job opportunities and lead to higher salaries. The BLS reported that the median annual wage for accountants with a master’s degree was $75,280 in 2019.

Professional Certifications

Accountants may also choose to pursue professional certifications such as Certified Public Accountant (CPA). These certifications demonstrate a commitment to the profession and can lead to higher salaries. The BLS reported that the median annual wage for accountants with a CPA certification was $78,320 in 2019.

Comparing the Salaries of Accountants Across the Country

Salaries for accountants can vary significantly depending on geographic location. Here, we look at how salaries for accountants differ across the country.

Regional Variations in Salaries

The BLS reported that the highest-paying region for accountants in 2019 was the West, where the median annual wage was $77,080. The lowest-paying region was the South, where the median annual wage was $66,640. Salaries also varied significantly within regions, with some states paying significantly higher wages than others.

State-Level Differences in Salaries

The BLS reported that the highest-paying state for accountants in 2019 was New York, where the median annual wage was $87,190. The lowest-paying state was Mississippi, where the median annual wage was $54,100. Other states with high salaries for accountants included California ($83,360), Alaska ($82,570), and Massachusetts ($80,400).

Reviewing the Benefits that Accompany Accountant Salaries

In addition to salaries, accountants may also receive a variety of benefits from employers. Here, we look at some of the most common benefits for accountants.

Health Insurance

Many employers offer health insurance plans to their employees. These plans can help cover the costs of medical care and prescription medications. In some cases, employers may even cover the cost of health insurance premiums for their employees.

Retirement Plans

Employers may also offer retirement plans such as 401(k)s to their employees. These plans allow employees to save money for retirement and can provide tax advantages. Employers may even match contributions made by employees, increasing the potential savings.

Paid Leave

Employers may also offer paid leave to their employees. This can include vacation days, sick days, and holidays. Paid leave can help ensure that employees have time off to rest and recharge.

Conclusion

In conclusion, the salary of an accountant can vary significantly depending on the industry, experience level, and geographic area. Accountants can maximize their earning potential by pursuing higher education and professional certifications, as well as exploring incentive pay structures and benefits. By understanding the factors that influence accountant salaries, you can better prepare yourself for a successful career in accounting.