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If you would like to work in accounting, it is important that you research the average salary for accountants.
You may enjoy filing taxes and managing money, but it is nice to know that you will make a decent amount of money in the process if you pursue this occupation.
Attending college to learn theory, practice and accounting methods is a must in today’s competitive marketplace. Since a college degree can cost you upwards of $100,000 at the more prestigious universities, it is important that you compare schooling costs to salaries to ensure that it is worth it to go to school.
Here is what you need to know:
What is the Average Salary Reported for Accountants?
According to a study conducted by the Bureau of Labor Statistics, the average salary reported in the field of accounting nationwide is $65,940. The highest wage earners surveys earned $115,950 per year and the lowest earned $40,850. While these are just averages and do not cement your earnings, it does help you see what your earning potential may be as you climb the ladder and gain work experience.
How Do Salaries Vary Based on Your Work Setting?
Some industries pay more than others. If you are mapping out your career, it can be helpful to learn where the pay is the highest. According to the same government study, accountants in finance and insurance settings make the highest salary and employees of management companies come second. Next on the list comes manufacturing companies and accounting firms. Government agencies come in 5th on the list of the highest paid industries with an average salary reported at $63,770 per year.
Other Factors that Can Affect Your Salary
Not only does the industry that you work in affect your salary, so does the region where you work. Some regions have much higher salaries than others because of the demand and the types of organizations that are housed in those regions. Currently, New York, New Jersey, Maryland, Massachusetts, and Virginia have the highest pay. If you are aiming your sights at any of these areas, you will not be disappointed.
Another thing you must consider before you complete your degree is what subset of the field you want to work in. Some subsets just naturally pay higher than others. Public accountants tend to make lower salaries but receive the best benefits because they are government employees. Management accountants work for big organizations and can top the list in subsets when professionals are highly qualified and work for a large firm.
Level of Education
While you only need a Bachelor’s in Accounting or Finance to gain experience in the field, having a higher level of education can land you a high pay raise. When you take the time to earn an advanced degree and sit for your CPA exam, you can earn about 5 to 15 percent more in the public accounting sector. Certifications really help you increase your salary and improve your reputation.
It is possible to earn a six-figure accounting salary, but do not expect to make that right out of school. Make sure that you set yourself up for success by choosing the right subset and industry to specialize in. After doing this, you can map out which degrees to earn to make a high salary for accountants.