Becoming a Certified Public Accountant (CPA) isn’t just a career move—it’s a ticket to higher pay and more career choices. With salaries ranging from $45,000 to $300,750 (thanks to data from Robert Half), a CPA license can be a game-changer for accountants.
CPAs can work in all kinds of roles, from private companies and public accounting firms to government positions. With enough experience, they can move up to roles like Chief Financial Officer or top tax consultant.
While general accountants earn a median salary of around $78,000, according to the (BLS), CPAs typically earn about $122,229—nearly 57% more. This salary boost is a big factor to consider when planning your career path.
Key Takeaways
- CPA Salary Advantage: CPAs can earn between $45,000 and $300,750, with a median salary of $122,229—about 57% higher than non-certified accountants, depending on role, experience, and location.
- 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 with a CPA 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 in the US for CPA-licensed accountants and auditor 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
- Chicago, Illinois: $78,166
- Miami, Florida: $73,571
Update: Data for salary sources can vary from site to site. ZipRecruiter estimates that Plantation averages $97,960, with 10 other cities in Florida having CPA salaries above $90,000, making the choice of becoming a CPA in Florida a great one.
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
As per Robert Half data, CPAs can earn from $45,000 at the entry-level salary for CPAs to as high as $300,750 for top positions, such as Chief Financial Officers.
CPAs typically earn more, with a median salary of approximately $122,229, compared to $78,000 for general accountants, indicating a 56.7% increase.
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.
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%.
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.
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.
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.
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.
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).
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.
Scoring higher on the CPA exam doesn’t directly raise your salary but can improve job prospects. Employers see strong scores as a sign of expertise. To boost your score, follow a study plan, use one of the best CPA review courses, focus on key concepts, and take practice exams to target weak areas.
Sources:
- https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm
- https://www.cnbc.com/2021/09/24/the-masters-degrees-that-give-the-biggest-salary-boostup-to-87percent.html
- https://www.indeed.com/career-advice/finding-a-job/high-paying-cities-for-cpas
- https://www.roberthalf.com/us/en/insights/career-development/the-rise-of-the-accountant-salary-and-10-top-accounting-jobs
- https://www.roberthalf.com/us/en/insights/career-development/the-rise-of-the-accountant-salary-and-10-top-accounting-jobs
