What is CPA salary package like? You may have pursued cost curve due to a passion for the profession, but at the same time and we all need to make a decent living from what we do in our day to day lives.
There are some strict CPA requirements to be able to practice in this field. So if you’re going to go through the effort to prepare for the CPA license requirements and take an expensive purchase course, it only makes sense to look into the kind of money you have to watch after the departure of one of the most challenging professional examinations out there is Prometric CPA exam.
Not only are the CPA exam requirements more stringent and expensive, but you do not do it. You also need to pass the CPA ethics test page, which means more time, more effort and more money out of pocket. Let’s see how all this effort can pay off.
In this section, I will shed light on what CPA salaries are like, as well as the best resorts that provide some of the most accurate data, market research show what the CPA salaries are like in different groups of industries and geographies, both public accounting and private sector (private and public companies).
Typically, the starting salary for CPAs are comparable in public accounting and private sector. For someone with a few years experience, wages are slightly higher in the public sector. However, for someone who stuck it out long time in public accounting, they are often offered a handsome premium to go to the private sector. If one sticks around long enough to become a partner, especially in the big four firms, salaries can reach a healthy mid-six-figure points with very healthy bonus package. Many CPAs do well over a million dollars a year.
The Bureau of Labor Statistics (BLS) is a public body that monitors jobs and wages, and according to them were about 1.5 million CPAs in the US in 2008. This figure is expected to carry 2 million in 2020. As a amounted to approximately 25% work in public accounting, either in review or taxes specialties. Less than 10% of these CPAs are self-employed and freelancers Either part time or full time consultants.
This is all just the United States information. Prospects for those who want foreign description is even hotter demand for accountants is expected to skyrocket beyond belief, especially in emerging economies. As more economies progress and standardize their financial systems and processes, the need for qualified CPAs will only grow overtime.
Many foreign positions in all operational areas also provide lucrative tax benefits, often devote a large chunk of income people from income taxes. For example, working in the United Arab Emirates exempts you from all income taxes.
average CPA salary package is only expected to increase in the coming years. Not only is demand expected to increase, but the nature of the profession has become more powerful and much, much more than the traditional role of accounting, auditing and taxation. The role of the auditor is much more complex than what it was, spread over laws and regulations compliance landscape is always changing in nature.
Let me give you an example. If you have an internal audit function, are not you only supposed to understand and implement financial accounting and reporting audits, but also operational audits that require knowledge of the nature and elements and business processes work, legal and regulatory compliance audits, which require understanding and application of relevant laws and regulations, such as Sarbanes Oxley (SOX), policies, procedures and governance audits as well as information technology audits.
CPAs who specialize in various groups of subjects and specialties will likely command the salary commensurate with the demand for their experience and knowledge. Other factors are geographical differences. A CPA working in New York will make more than a CPA working in Ohio given the increased cost of living. This difference is called a cost of living adjustment. But all other factors equal, CPA’s salary package will be primarily dictated by the experience in terms of capacity and employment. Let’s look at some statistics:
Bureau of Labor Statistics
and 2012, the median CPA salary was about $ 65,000, with the center in the $ 50,000 to $ 82,000 range and the top 10% in the $ 105,000 to $ 110,000 range. These data are from the United States, taking into account geographical differences (cost of living adjustment).
Starting salaries for CPAs these days are usually in the $ 50,000 to $ 55,000 range (those with a master’s degree typically earn $ 5,000 more). CPAs with 4 to 6 years of experience typically earn $ 55,000 to $ 75,000 to small businesses, and $ 70,000 to $ 155,000 in larger companies. Controllers and Chief Financial Officers typically make anywhere from $ 165,000 all the way up to $ 400,000 a year (large companies), excluding bonuses and other incentives. Now there is something to aspire to
Robert Half Treasurer Salary Guide
A more detailed and comprehensive study of the CPA wages carried out by Robert Half International (RHI), the world’s leading accounting and finance recruitment company . Every year, Robert Half manufactures a comprehensive study of wages in accounting and finance. The program is broken down by region, specialization and even the position or specialty within each block.
Salary.com is a popular and probably the most widely used website to market wages for various positions and career fields. You input parameters, such as years of experience, responsibility, direct reports, location, company, industry and several others. The system bugs database, and with external market research provides a fairly detailed plan for what salary package that position can be.
other factors affect the purchase Salary Package
The quality of CPA salary package is going to be evaluated on various aspects I above. Some of the most lucrative package will be available for those who not only have the relevant experience, but also a CPA certification, other relevant certificates, advanced degrees, education from a very credible and run institutions and specialties within the accounting and finance areas.
I also want to clarify that the CPA salaries can vary greatly from wages accountant is not a CPA. Getting to purchase certification usually results in higher wages given additional knowledge gained from obtaining certification. This difference can be about 10% at the beginning of your career, and up to 100% years later at the senior level. So as you can imagine, to get a license purchase is well worth the effort.
Finally, I want to conclude this section by saying that although the salary is very important to note that the total compensation package when evaluating different job offers. A CPA salary probably will not change too much from one company to another in a similar position or role, as well as the salary you should consider the benefits package such as time off, health benefits and 401k contribution game. There are also other intangible factors such as the value of the company, commute to work, flexible work-life balance arrangements and others. But to benefit from all this, must complete exam requirements .
So now that you know these facts, go out and make the best decision for you. Let me know if I can help you with anything.