When professionals are considering job offers, the base salary is the core component. But job satisfaction stretches far beyond the annual pay. Certified Public Accounts (CPAs) eye other rewards when thinking about taking a job. What can you expect besides the baseline CPA salary? Will you receive yearly bonuses and other perks? Keep reading to find out more.
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Average Base CPA Salaries
When looking at CPA salaries as a whole, we must consider a few factors. CPAs already earn more on average than unlicensed accountants — almost $70,000 more, depending on the location, experience and industry sector. A CPA pulls in around $119,000 each year, while an accountant without a license earns around $50,000 annually. Your education level also contributes to your salary as an accountant. Those with master’s degrees earn between 5% and 15% more than those with bachelor’s degrees.
Besides professional licensure and education, other things affect an accountant’s base salary. Job title and experience can significantly boost your pay. For instance, late-career CPAs with 20 years of experience or more make about $150,000 each year. Senior managers and directors working in tax or audit services earn between $112,000 and $217,000. The same wide variations exist in entry-level accountant salaries, ranging from $40,000 to $76,000 per year.
Where you work can make a huge difference as well. Professionals in several major cities command higher salaries. CPAs in San Rafael, a city in San Francisco’s North Bay area, earn an average of $106K per year. Those in our nation’s capital earn almost $94K per year. But don’t forget to consider other factors such as local costs of living.
Job Outlook for Accountants
The demand for professional accounts, including CPAs, should drive job growth over the next several years. The latest outlook from the Bureau of Labor Statistics predicts a 7% increase in jobs for accountants and auditors between now and 2030, keeping pace with employment growth in most other industries.
Of course, conditions can change at any time. Job growth could happen faster than the BLS expects. The global COVID-19 pandemic threw everyone a curveball, major corporations included. Pew Research Center reveals that Baby Boomers started retiring in larger numbers in 2020. The early retirement trend has accelerated in 2021, leaving many open accounting jobs and fewer candidates to fill them.
At first glance, this trend could translate into more opportunities for those in the field. Yet companies all over the United States are reporting labor shortages, even in the accounting field. That’s because the pandemic also affected the number of available candidates. Those eying higher education back in 2020 found significant challenges in the pandemic’s earliest stages: suspended classes, schools closing down, and so forth. Schools are now navigating the new normal, but some challenges remain.
The Perks of Being a CPA
Higher base pay isn’t the only reason to earn a CPA license. Robert Half International observed in 2021 that there’s a massive shortage of qualified accountants. As a result, both public accounting firms and businesses in other sectors are keen to attract talent. These can lead to lucrative opportunities, especially for college graduates and newly-minted CPAs.
How are these companies trying to attract new talent? They’re sweetening the compensation packages they offer. Yearly bonuses are a major part of many packages. It’s difficult to estimate how many firms are including or increasing these bonuses, but they’ll become more common. Factors that determine bonuses include overall company performance, individual work performance and seniority.
Firms are willing to show candidates the money, but there’s more to rewarding them than mere dollars and sense. Employers are offering more perks to new hires: telecommuting, compressed workweeks, flexible work schedules and additional vacation time. These are vital to helping employees achieve a solid life-work balance.
Compensation: More Than Just Salary
When you’re thinking about your career path, you’ll want to keep a few things in mind. Possessing some key qualifications increases your chances of snagging a job offer. Many firms want candidates who are also CPAs — and logically so, considering how rigorous the CPA exam is plus the knowledge and competency required to pass it.
Being certified gives you an edge in the job market, which may provide a lot of opportunities in the coming years. When considering job offers, look at all aspects of each compensation package. Bonuses, vacation, telecommuting and other perks may come with the base CPA salary you’re being offered.
To learn more about CPA Salaries, visit https://accounting.uworld.com/cpa-review/cpa-career/cpa-salary/.
