Thinking about joining the ranks of the 1.4 million accountants and auditors in the United States? Hold on because there’s more to this career than meets the eye. Imagine being part of a thriving community that’s at the heart of every successful business, with opportunities to climb the career ladder and significantly increase your earning potential.
But what exactly can you expect to earn as a CPA auditor?
I’ll dive deeper into the figures and factors that determine how much CPA auditors really make. Ready to explore how you can maximize your salary in this critical and rewarding field? Keep reading as I break down the numbers and show you the pathway to financial success in CPA auditing.
Key Takeaways
- Geographic and Sector Variations Affect Salaries: CPA auditor salaries are significantly higher in major financial hubs such as New York City, San Francisco, and Chicago, as well as in industries like banking and securities that demand high financial scrutiny.
- Experience and Specialization Boost Earnings: Specialization in fields like tax preparation or financial analysis can lead to substantial salary increases for CPA auditors, with an average salary of $129,000 and ranging between $100,000 and $167,000.
- Job Growth Supports Salary Advancement: Steady employment growth for CPA auditors is anticipated, with a projected increase of 4% from 2022 to 2032, which promotes job security and opportunities for salary increases.
- Certification and Professional Development Enhance Opportunities: Obtaining CPA certification and further qualifications, such as a Certified Internal Auditor (CIA) designation, opens doors to higher salaries and broader career opportunities.
How Much CPA Auditors Make
The CPA profession is known for its robust earning potential, with the average CPA salary varying significantly based on factors like geographic location, industry, and experience. According to the Bureau of Labor Statistics (BLS), accountants and auditors have a median annual wage of approximately $78,000.
However, for CPAs, particularly those in public accounting or those offering advisory services, salaries can be substantially higher. According to the AICPA, CPAs make an average salary of $122,000.
Additionally, CPA Auditors make $129,000 on average, with a range from $100,000 to $167,000, according to Glassdoor.
The Landscape of Accountant Salaries: Public vs. Private Accounting
The divide between public accounting and private accounting also plays a significant role in a CPA’s salary. While public accountants work for accounting firms and offer their services to the public, private accountants (or corporate accountants) are employed by individual companies to handle their internal financial affairs. The average salary in private accounting can sometimes surpass that of public accounting due to the specialized nature of the work and the direct value it brings to the specific organization’s financial health.
For example, financial managers, who may start their careers as CPAs in private accounting, have seen median salaries well above $139,000, as reported by the BLS. The variance in accountant salary is also evident across different sectors. CPAs specializing in financial analysis or risk management within finance departments can expect salaries reflective of their crucial role in strategic decision-making and safeguarding assets.
CPA Auditor Salary: Geographical and Industry Insights
The geographical location remains a significant factor in salary differences. CPAs in metropolitan areas or financial hubs like New York City, San Francisco, and Chicago often have higher salaries due to the higher cost of living and the concentration of top accounting firms and complex organizations. Similarly, CPAs offering tax services or working in industries with high financial scrutiny, such as banking and securities, might see their salaries exceed the average due to the specialized, high-stakes nature of their work.
Industry-specific demand plays a crucial role as well. The continued demand for accountants and auditors skilled in financial analysis, tax preparation, and advisory services, particularly those with a CPA certification, is expected to drive employment growth.
The BLS projects job growth for accountants and auditors to be about 4% from 2022 to 2032, keeping pace with the average for all occupations but highlighting the ongoing need for skilled financial professionals. This demand is mirrored in the projections for CPA salaries, with specialized roles and industries offering higher compensation to attract the necessary expertise.
As CPAs climb the career ladder, their salary potential expands in tandem with their experience and the breadth of their professional capabilities. Notably, acquiring a CPA license is the launchpad for this journey, but it’s the continuous pursuit of professional development, specialization, and strategic career moves that propel CPAs to higher salary brackets.
The Trajectory of CPA Auditor Salaries With Experience
Robert Half’s salary guide provides insights into these trends, noting that CPAs with a combination of certification, experience, and specialization in high-demand areas command the highest pay. The journey from entry-level positions in accounting to roles of greater responsibility and complexity comes with a corresponding increase in salary.
For instance, entry-level CPAs often start with salaries in the range of $50,000 to $65,000 annually, but with a few years of experience, this can quickly escalate. Mid-career CPAs, especially those who have honed their skills in specialized areas like tax preparation or financial analysis, can see their salaries jump to $80,000 or more.
As your career grows, entering a corporate accounting job like a Senior Internal Auditor has a salary range of $92,000-$163,000 in major cities like Miami or New York.
Specialization: A Key to Unlocking Higher CPA Salary
Specialization within the accounting profession not only enhances job satisfaction by aligning with personal interests and aptitudes but also significantly boosts earning potential. Certified Public Accountants with expertise in risk management, financial analysis, or assurance services are often in high demand.
For example, CPAs specializing in advisory services for financial investments or those with a CIA designation may earn higher salaries due to the specialized, high-value expertise they bring to their roles.
The Future Landscape: CPA Employment Growth and Salary Trends
The Bureau of Labor Statistics anticipates steady employment growth for accountants and auditors, including CPAs, driven by the continued necessity of thorough financial documentation and audit services across all sectors. The evolving financial landscape, regulatory changes, and the increasing complexity of financial transactions and reporting requirements partly fuel this demand.
Moreover, the trend toward globalization and technology’s expanding role in accounting practices will likely shape the future job market for CPAs. Those who adapt by developing expertise in areas such as international accounting standards, cybersecurity risk management, and financial technology (FinTech) will likely find themselves well-positioned for the highest average salary brackets and most rewarding career opportunities.
Take $1,600 Off UWorld CPA Elite-Unlimited Course
Conclusion
Opportunities mark the journey of a Certified Public Accountant for significant financial reward, professional growth, and the chance to play a crucial role in the integrity and efficiency of financial systems. The CPA salary reflects the importance of these professionals in today’s business world, rewarding their expertise, dedication, and the critical oversight they provide. As the field continues to evolve, those who invest in their professional development, embrace specialization, and adapt to industry changes will find themselves at the forefront of the profession, enjoying both the challenges and the substantial financial rewards it offers.
Be on your way to becoming a CPA auditor and get started with a CPA course that is highly trusted and recommended.
FAQs
Starting salaries for CPA auditors in the U.S. can start around $88,000, according to Glassdoor.
Experience significantly boosts a CPA auditor’s salary: mid-career professionals earn $100,000 to $167,000, with an average salary of $129,000.
Salaries can vary: public accountants may start with lower salaries but have the potential for rapid growth, whereas private accountants might start higher, especially in premium industries. Both paths offer lucrative career potential.
Finance, insurance, technology, and pharmaceuticals are among the highest-paying industries for CPA auditors, especially those specializing in risk management, financial analysis, and compliance auditing.
Salaries are highest in major financial hubs like New York City, San Francisco, and Chicago, reflecting the cost of living and business concentration. Salaries in these cities can significantly exceed the national average, while those in smaller cities or rural areas may be lower but come with a reduced cost of living.
