If you’ve recently obtained your CPA license or are considering taking the CPA exam, you may be wondering about the average salary for new Certified Public Accountants.
Labor statistics data shows that accounting firms are on an upward trajectory in terms of profit and growth. But what does this mean for accounting professionals, and does it translate into the pay that those taking accounting jobs receive?
The answer is yes.
Although CPA salary for new hires varies greatly, I’ve combined a ton of CPA salary data to show you just what you could make after CPA licensure. Although CPA certification won’t promise these exact figures, it’s clear that CPA candidates have a better starting wage than those who pursue an accounting career without it.
Let’s take a lot at exactly where these numbers fall.
Key Takeaways
- Average and Median Salary: As of February 2024, the average salary for a CPA in the United States is approximately $72,153 per year, with a median total pay of around $91,289 annually, indicating robust earning prospects.
- Influence of Industry and Specialization: CPAs in financial services typically receive the highest salaries, with roles in specialized areas like forensic accounting and financial analysis also commanding premium pay, reflecting the demand for specialized skills.
- Impact of Location and Firm Size: Geographic location and the size of the accounting firm significantly affect salaries, with top firms in major metropolitan areas offering the most competitive compensation packages.
- Top Paying Companies: Leading accounting firms such as EY, PwC, and Deloitte are among the highest payers in the industry, underscoring the financial benefits of working for well-established companies.
Average CPA Salary and Total Pay Range
According to Glassdoor, the average starting CPA salary in the United States is $72,153 per year, with a broader total pay range between$68,000 and $124,000 annually. This range includes base pay, which typically varies from $54,000 to $97,000 per year, and additional pay—comprising bonuses, commissions, and profit-sharing—that can add another $14,000 to $27,000 to annual earnings.
The median total pay for CPAs, standing at approximately $91,289 annually, captures the middle point of earnings across the spectrum. This figure is a vital metric for both aspiring CPAs and seasoned professionals aiming to benchmark their compensation.
Factors Influencing CPA Salaries
- Role and Experience: The role a CPA fills greatly affects their salary. Entry-level CPA positions, like those of a junior accountant or entry-level public accountant in public accounting firms, offer a glimpse into a business’s financial operations, focusing on tasks such as preparing tax returns and analyzing profit and loss statements.
- Sector: CPAs can choose between public accounting and private accounting paths, each offering distinct financial rewards. Public accountant salary varies widely depending on experience and the size of the accounting firm. In contrast, a private accountant’s salary may offer stability and benefits tied to specific industries, and companies hire CPAs to manage internal accounting functions.
- Geographical Location: Salary data indicates that the location of a job significantly impacts accountant salaries. In Florida, cities such as Miami, Tampa, and Jacksonville often provide higher average CPA salaries compared to smaller towns and rural areas. This variation is largely due to the higher cost of living in metropolitan areas and the presence of larger, similarly sized organizations that are able to offer more competitive compensation packages.
- Specialization and Market Demand: Specialized roles in areas such as forensic accounting, tax services, or financial analysis can command even bigger starting salaries. The demand for specialized accounting services encourages firms to offer competitive salaries to attract skilled CPAs.
- Company Culture and Size: Similarly sized organizations tend to offer comparable salaries, but company culture can vary wildly, affecting job satisfaction and, by extension, the turnover rates, which can influence salary ranges as companies strive to retain top talent.
Industry Variations in CPA Salaries
CPAs find employment across various sectors, each offering different compensation packages:
- Financial Services: Typically offers the highest salaries, with a median total pay of $119,199, reflecting a 7% higher rate compared to other industries. Top firms in this sector, like EY and PwC, offer salaries as high as $130,080 and $119,199, respectively.
- Management & Consulting: Provides competitive pay with a median total of $110,609. Companies such as Deloitte feature prominently with significant compensation offers.
- Media & Communication: Tends to offer lower yet competitive salaries with a median total pay of $92,438, about 20% lower than more lucrative industries.
Top Paying Companies for CPAs
Certain firms are known for their high compensation rates for CPAs, significantly influencing the overall salary statistics:
- EY (Ernst & Young): Leads with an average pay of $130,080 per year.
- PwC (PricewaterhouseCoopers): Offers $119,199 per year.
- Deloitte: Provides CPAs with $110,609 annually.
- Shwiff Levy & Polo: Smaller yet competitive, offers $97,935 per year.
- Self Opportunity: A niche player with an average salary of $92,438.
These figures demonstrate the substantial financial benefits of working for top-tier accounting firms and highlight the industry’s recognition of the expertise CPAs bring to their roles.
A Detailed Look at Starting Salaries by Role
Starting salaries for CPAs can provide a significant benchmark for those entering the field. Here’s a snapshot of what Robert Half data says entry-level CPAs might expect in various high-profile accounting roles based on the lower percentile (often considered entry-level) figures:
- Chief Financial Officer (CFO): $176,500
- Vice President of Finance: $143,750
- Corporate Controller: $111,000
- Divisional Controller: $107,750
- Assistant Controller: $81,250
- Director of Finance: $121,750
- Director of Accounting: $118,000
- Treasurer: $131,750
The starting salaries for various accounting roles showcase a wide range of compensation, reflecting the diverse responsibilities within the field. An Assistant Treasurer starts at $76,750, indicating a role that supports senior treasury positions with significant financial oversight. A Director of Financial Reporting earns a starting salary of $122,500, reflecting the critical nature of their role in overseeing the accuracy of financial documents. Financial Project Managers, who oversee financial projects from inception to completion, start at $106,000.
Forensic Accountants, specialists in investigating financial discrepancies and fraud, begin their careers with a salary of $83,250. Property Accountants who manage financial records related to real estate properties have a starting salary of $66,750. Plant Controllers, responsible for financial management in manufacturing settings, earn $102,000 initially.
- In the procurement department, a Procurement Manager starts at $79,500, overseeing purchasing operations and strategy.
- A Procurement Specialist, responsible for handling day-to-day acquisition activities, begins at $45,000.
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Final Thoughts
Entering the accounting profession as a Certified Public Accountant opens up a myriad of opportunities characterized by substantial job satisfaction and potential for high earnings. Data shows that the average CPA salary in the United States stands at approximately $72,153 annually, with a broader compensation range that can go up to $124,000, including bonuses and profit sharing.
Factors such as industry, role, experience, and geographic location significantly influence earnings, with top accounting firms like EY, PwC, and Deloitte offering the highest salaries. This variance highlights the importance of strategic career planning and negotiation for CPAs, ensuring alignment with both financial goals and professional aspirations.
See which top CPA prep course the Big Four Accounting Firms suggest, and be on your way to a lucrative career as a CPA.
FAQ
The average salary for a CPA is approximately $72,153 per year.
The total pay range for a CPA varies from $68,000 to $124,000 annually, which includes base pay and additional earnings like bonuses and profit sharing.
A CPA can expect to earn an additional $14,000 to $27,000 per year on top of their base salary.
The median total pay for a CPA is about $91,289 per year.
The Financial Services industry offers the highest median total pay to CPAs at $119,199, followed by Management & Consulting and Media & Communication.
EY (Ernst & Young) offers the highest average pay to CPAs at $130,080 per year.
Top accounting firms like EY, PwC, and Deloitte offer competitive salaries ranging from $110,609 to $130,080 per year.
Yes, CPA salaries can vary significantly across companies, with top firms offering much higher pay compared to smaller or local firms.
Yes, CPA compensation often includes bonuses, commission, tips, and profit sharing, which are part of the additional pay.
In payroll services, salaries can vary widely, but typically, professionals in this field can expect to earn between $40,000 and $75,000 annually.
