CPA Salary Guide: How Much Do CPAs Make?
AI was used in the creation of this article. The article was reviewed, fact-checked and edited by a content review team. We might earn a commission if you make a purchase through one of the links. McClatchy newsrooms were not involved in the creation of this content.
Becoming a Certified Public Accountant (CPA) is not just a career choice; it’s a pathway to a wide range of financial and professional benefits. With a salary spectrum that spans from $45,000 to $300,750, as highlighted by Robert Half, the CPA credential is a significant lever for accountants with a CPA license.
Opportunities for CPAs are available across various sectors and positions, including private corporations, public accounting firms, and government agencies. With experience and expertise, a CPA can progress to high-ranking positions like a Chief Financial Officer or a top-tier tax consultant.
While the U.S. Bureau of Labor Statistics (BLS) groups CPAs with general accountants and auditors in salary reports, it’s a recognized fact, supported by the American Institute of CPAs (AICPA), that CPAs typically outearn their non-certified peers.
To put this into perspective, the median annual salary for all accountants in 2022 was around $78,000. For CPAs, this number currently falls around $122,229. This is a 56.7% increase.
Understanding the salary guidelines reveals the potential earnings for CPA professionals that are needed when weighing career path options.
Key Takeaways
Wide Salary Range: CPAs earn between $45,000 and $300,750, with factors like role, experience, and location influencing salaries.
Higher Earnings than Peers: CPAs typically earn 56.7% more than non-certified accountants, with a median salary of around $122,229.
Sector Variability: Opportunities span sectors, from public accounting firms to private corporations and government agencies, each offering different salary scales.
Educational Impact: Advanced degrees and certifications, such as an MBA, can substantially boost a CPA’s salary, with master’s degree holders seeing up to an 87% increase in earnings.
Sought-After Skills: Skills in financial reporting, modeling, management, and data analytics, along with certifications like CMA and ERP software proficiency, enhance salary prospects.
Geographical Differences: Location significantly affects salaries, with cities like Salinas, San Francisco, and New York City being among the highest-paying for CPAs.
Positive Job Outlook: The demand for CPAs is projected to grow, with a 4% increase in employment expected from 2022 to 2032, indicating a stable and promising career path.
Understanding CPA Salary Structures
CPA salaries are influenced by several factors, including:
Role
Education
Experience
Geographical location
Sector of employment
Education lays the foundation, with CPAs holding advanced degrees or certifications often commanding higher salaries. Experience significantly impacts earning potential, with more seasoned professionals typically earning more.
Geographical location affects salaries due to factors like the local economy and cost of living. At the same time, the employment sector (public vs. private, government, or nonprofit) can cause considerable variation in pay.
Average CPA Salary Insights for Specific Roles
The average CPA salary typically exceeds that of general accountants, reflecting the advanced skill set, expertise, and responsibilities of the CPA designation. CPAs are involved in critical financial decision-making processes, tax strategies, payroll services, and audit management, roles that command a premium in the job market.
Here are the average CPA salaries you can expect to find for common industry roles:
Vice President of Finance: $247,416.67
Corporate Controller: $198,000.00
Divisional Controller: $160,666.67
Assistant Controller: $145,333.33
Director of Finance: $112,916.67
Director of Accounting: $155,083.33
Treasurer: $151,666.67
Assistant Treasurer: $194,166.67
Director of Financial Reporting: $100,583.33
Financial Project Manager: $151,166.67
Forensic Accountant: $134,750.00
Property Accountant: $102,250.00
Plant Controller: $78,416.67
Procurement Manager: $115,583.33
Procurement Specialist: $103,416.67
Role of Education and Skills in CPA Salaries
Education plays a crucial role in shaping the earning potential of Certified Public Accountants. The foundational requirement for CPAs typically includes completing 150 credit hours of education, passing the CPA exam, and often culminating in a bachelor’s degree. However, CPAs who go beyond this baseline and pursue further education position themselves for higher salary prospects.
Master’s Degrees
MBAs, in particular, are part of the CPA career path for many CPA candidates. An MBA provides CPAs with a broader business perspective and advanced management skills, making them ideal candidates for high-level strategic organizational roles. This combination of accounting expertise and business acumen often leads to significant salary boosts, as CPAs with an MBA are well-equipped to take on complex financial leadership positions.
This trend is supported by a CNBC report, which states that a master’s degree can lead to a substantial salary boost, with some fields seeing up to an 87% increase in earnings.
Skill Building and Certifications
CPA salary data also shows that employers reward licensed CPAs focusing on skill-building. The Robert Half report found that the following skills and certifications were the most highly sought-after:
Financial reporting
Financial modeling
Management experience
Data Analytics
Certified Management Accountant (CMA)
ERP software (SAP, Oracle, Hyperion)
Excel (advanced)
QuickBooks
Sage Intacct
SQL
The Impact of Experience on CPA Salaries
Experience is another significant factor in salary determination. Salary percentiles are used to categorize the salary ranges for different positions. They provide insights into how salaries vary based on experience and qualifications.
Here is what each percentile represents:
Entry-Level (25th Percentile): This represents the lower end of the salary range and is typically associated with individuals new to the role or with minimal experience.
Median (50th Percentile): This is the middle point in the salary range and reflects the typical salary for individuals with average experience and qualifications.
Experienced (75th Percentile): The 75th percentile represents the higher end of the salary range, often indicating salaries for individuals who bring valuable experience and qualifications to the position.
CPA Salaries by Positions
Now, let’s look at the salary ranges for different positions:
Chief Financial Officer (CFO) – Corporate Accounting
Entry-Level (25th Percentile): $176,500
Median (50th Percentile): $265,000
Experienced (75th Percentile): $300,750
Vice President of Finance
Entry-Level (25th Percentile): $143,750
Median (50th Percentile): $203,750
Experienced (75th Percentile): $246,500
Corporate Controller
Entry-Level (25th Percentile): $111,000
Median (50th Percentile): $160,250
Experienced (75th Percentile): $210,750
Financial Project Manager
Entry-Level (25th Percentile): [Salary data not provided]
Median (50th Percentile): $134,750
Experienced (75th Percentile): $163,500
Forensic Accountant
Entry-Level (25th Percentile): $83,250
Median (50th Percentile): $103,750
Experienced (75th Percentile): $119,750
Assistant Treasurer
Entry-Level (25th Percentile): $76,750
Median (50th Percentile): $104,000
Experienced (75th Percentile): $121,000
Director of Financial Reporting
Entry-Level (25th Percentile): $122,500
Median (50th Percentile): $154,000
Experienced (75th Percentile): $177,000
Plant Controller
Entry-Level (25th Percentile): $102,000
Median (50th Percentile): $117,250
Experienced (75th Percentile): $127,500
CPA Salaries Across Various Sectors
From job opportunities in the private sector to the federal government, salaries vary greatly depending on what field you are working in.
Key sectors include:
Construction: Managing finances and budgets.
The average annual pay for a Construction Accountant in the United States is approximately $74,485. Source
Government: Ensuring financial transparency and compliance.
The average salary for a Government Accountant is around $65,427. Source
Healthcare: Handling complex financial transactions and compliance.
The average annual pay for a Healthcare CPA in the United States is about $77,368. Source
Financial Services: Navigating financial operations and risk management.
The average CPA salary is around $122,000 per year. Source
Nonprofit: Managing budgets, financial reporting, and grant compliance.
The average salary for a Non-Profit Accountant in the U.S. is approximately $67,446 per year. Source
CPAs may start at a certain level in public accounting firms but can quickly advance to higher-paying positions. In the private sector, such as corporations or small businesses, a licensed CPA, like the Chief Financial Officer, will often hold a key financial position. Government roles and nonprofit organizations may not be high-earning but can provide other benefits like job security and work-life balance. They’re also in continued demand.
Geographical Variations in CPA Salaries
The salary of CPAs can vary significantly depending on their geographical location. Here are some of the best-paying cities for CPA-licensed accountants and auditors in the U.S. and their average salaries per year:
Salinas, California: $120,050
San Francisco, California: $104,616
New York City, New York: $102,190
Midland, Texas: $98,058
Washington, D.C.: $95,353
San Jose, California: $94,336
Boston, Massachusetts: $92,074
Seattle, Washington: $90,880
Houston, Texas: $86,700
Trenton, New Jersey: $86,585
Los Angeles, California: $86,027
Dallas, Texas: $83,896
Austin, Texas: $83,282
Denver, Colorado: $81,390
Atlanta, Georgia: $81,384
CPA Salary Trends and Future Outlook
The occupational outlook by the BLS for CPA salaries and the job market appears promising based on current trends and projections:
Job Outlook (2022-2032): Employment of accountants and auditors is projected to grow 4 percent from 2022 to 2032. However, this is about as fast as the average for all occupations.
Approximately 126,500 openings for accountants and auditors are projected each year over the decade, many of which are expected to arise from the need to replace workers who transfer to different occupations or exit the labor force.
Demand for Various Accounting Roles: The demand for various accounting roles, such as staff accountants, financial analysts, senior compliance analysts, internal auditors, controllers, AR/AP clerks, senior accountants, payroll managers/supervisors, senior cost accountants, and senior business analysts, is increasing.
This is due to the need for analytics-savvy professionals, guidance on efficiencies and information systems, compliance mandates, internal audit leadership, technology skills, operational support, financial statement preparation, compliance, inventory analysis, and data analysis.
Industry-Specific Knowledge:
CPAs with industry-specific knowledge, such as healthcare, real estate, or technology, are often sought after for their ability to address unique financial challenges within their respective sectors.
According to a mid-year update by Modern Healthcare, the healthcare industry is experiencing notable financial shifts. Simultaneously, in the realm of cybersecurity, the demand for CPAs with expertise in safeguarding financial data and systems continues to surge. As organizations prioritize data security and compliance, CPAs who can provide sound financial guidance within the context of cybersecurity are increasingly sought after.
FAQs
What is the salary range for CPAs?
As per Robert Half data, CPAs can earn from $45,000 at the entry level to as high as $300,750 for top positions, such as Chief Financial Officers.
How does a CPA salary compare to that of a general accountant?
CPAs typically earn more, with a median salary of approximately $122,229, compared to $78,000 for general accountants, indicating a 56.7% increase.
What factors influence CPA salaries?
Key factors include the CPA’s role, level of education, years of experience, geographic location, and the sector (public, private, government, or nonprofit) they work in.
How does education impact CPA salaries?
Advanced degrees or certifications can significantly raise salaries. For instance, CPAs with a master’s degree or MBA can see an increase in earnings by up to 87%.
What skills and certifications enhance a CPA’s salary?
Financial reporting, financial modeling, management experience, and data analytics skills are valuable. Certifications like CMA, expertise in ERP software (SAP, Oracle, Hyperion), advanced Excel, QuickBooks, Sage Intacct, and SQL are highly sought-after.
What is the role of experience in determining a CPA’s salary?
Salary growth is tied to experience. For instance, entry-level CPAs might start around $45,000, but with years of experience, they can reach over $300,000, especially in senior roles.
How do CPA salaries vary across different sectors?
In the public sector, salaries might start lower but can quickly increase. In the private sector, roles like CFOs can offer salaries upwards of $300,000. Government and nonprofit roles may offer lower salaries but come with other benefits like job security.
What is the impact of geographical location on CPA salaries?
The impact of geographical location on CPA salaries is substantial. Salaries can vary widely based on local economic conditions and the cost of living. For example, a CPA in New York City might earn significantly more than one in a smaller city or rural area due to the higher cost of living and the concentration of finance-related businesses in New York.
What are some of the highest-paying cities for CPAs in the U.S.?
Top-paying cities include Salinas, CA ($120,050), San Francisco, CA ($104,616), New York City, NY ($102,190), Midland, TX ($98,058), and Washington, D.C. ($95,353).
What is the job market outlook for CPAs?
Employment for accountants and auditors is projected to grow 4 percent from 2022 to 2032, with about 126,500 openings projected each year over the decade.
Sources:
