An accountant is the one who is related to almost all the financial transactions of a company. The salary range for an accountant depends upon the years of work experience gained by him/her. Read on to know more about the salary range of an accountant.
An accountant maintains the financial records of a firm or an individual. He/she is also responsible for analyzing the profit and loss, tax liability, and other financial transactions of a company. Thus, an accountant is an important part of any business organization. The field of accounting is vast and varied, thus, there are different types of accounting careers, and a student aspiring to become an accountant can choose a career path of his/her choice. Mentioned below are some of the important types of accountants:
- Certified Public Accountant (CPA)
- Forensic Accountant
- General Accountant
- Chief Financial Officer (CFO)
- Internal Auditors
- Government Accountant
Each of these jobs has a different set of financial responsibilities to perform. The type of accounting career decides the educational requirements for becoming an accountant. But, the basic educational requirement for becoming an accountant is a bachelor’s degree, with accounting as a major course and other finance and economic courses. The student can further do specializations depending upon the accounting career chosen.
Salary Range of an Accountant
It has been observed that the undergraduate degree obtained to become an accountant does not influence the salary range. But, if an individual has obtained a master’s degree in business administration, then he/she is offered a good salary range. Even students who complete the certification required for CPA earn a good salary. A survey done in the year 2007 reported that a Certified Public Accountant earns an average annual salary of $92,000. Many of these CPAs were working as managers or directors of a company. Thus, any advance training in the accounting field promises a good salary for the accountant. Online accounting programs, which also include online MBA degrees, are quite popular these days.
According to a survey, an average accountant’s starting salary in the year 2009 is $40,000. One more survey done in the year 2006 stated that the average annual starting salary of accountants, who earned a bachelor’s degree, was $46,718, while those who earned a master’s degree earned $49,277 annually.
The accountant salary pay scale is influenced by the type of employer. An accountant can be self-employed or he/she can work for an organization, hospital, government, etc. Given below is a table that gives the average salary of an accountant depending upon the employer type.
|Employer Type||Salary Range (in Dollars)|
|Government – Federal||40,428 – 70,537|
|Company||38,363 – 51,562|
|Non-Profit Organization||33,831 – 47,232|
|Firm/Private Practice||37,121 – 51,136|
|College/University||33,639 – 45,657|
|Hospital||38,311 – 48,548|
|Self Employed||30,066 – 50,849|
|Franchise||34,184 – 51,450|
|Contract||40,708 – 63,918|
Work experience affects the salaries of almost all jobs and same is the case with accounting. Accountants with good and practical work experience earn a good salary range. The table given below will give you a brief idea on an accountant’s salary range depending on the years of work experience he/she has.
|Work Experience (Years)||Salary Range (in Dollars)|
|Less than one year||34,453 – 46,033|
|1 – 4||35,797 – 48,423|
|5 – 9||39,231 – 53,367|
|10 – 19||39,677 – 54,937|
|20 or more||40,516 – 56,821|
The salary of an accountant is also affected by the geographical area or the city where he/she is working. Firms established in smaller towns do not pay as much as those in larger cities. However, we should also note that big cities have a higher cost of living. Thus, we can conclude saying that the factors that rule an accountant’s salary range are higher education, type of employer, and work experience. The above-given figures related to the salary range are approximate and may vary under different circumstances.