Accounting is a key function in any business or organization. Whether it is to balance the books, maintain financial statements, prepare tax returns, or manage budgets, the role of an accountant is pivotal. However, one common question that we often come across is – ‘How much do accountants make?’
Accountant salaries can vary significantly, depending on a variety of factors such as their level of experience, the size of the firm, the industry they work in, and their geographical location. For instance, entry-level accountants tend to earn less than their experienced colleagues, and accountants who work for larger companies or firms often have higher salaries.
As of 2020, according to the U.S. Bureau of Labor Statistics, the median annual wage for accountants was $71,550. The lowest 10 percent earned less than $45,220, and the highest 10 percent earned more than $124,450. These ranges highlight the potential within the profession and serves as a barometer for anyone aiming to enter this field.
Accountants who want to further their earning potential can aim to achieve a Certified Public Accountant (CPA) designation. A CPA is a high standard in the accounting profession, and it increases credibility and earning power. The average salary for a CPA is approximately $67,000 according to Glassdoor, with the potential to earn up to $110,000 a year.
Accountants who work in specific industries earn different amounts. For instance, accountants working in the finance or insurance sector tend to earn more than those in government or education sectors. The median annual wage for accountants in finance and insurance was $76,440, while the median wage for those in government was $70,180.
Geographic location is another significant factor in determining an accountant’s salary. Regions with a higher cost of living and a high demand for accountants, such as New York and California, generally offer higher salaries compared to regions with a lower cost of living.
In addition to the regular job of bookkeeping and creating financial statements, some accountants may also be tasked with maintaining a fixed asset register in QuickBooks. This responsibility involves keeping track of the assets owned by the company, their condition, location, and value, which is crucial for calculating depreciation and for insurance purposes. The ability to maintain complex financial systems like a fixed asset register can also add to an accountant’s value, and hence their earning potential.
While the salaries of accountants can vary greatly, it is generally a steady profession with good income potential. In addition to the job security and financial benefits, accountants often enjoy the challenge of problem-solving and the opportunity to work closely with a variety of clients, making it a rewarding career choice for many.
To conclude, how much an accountant makes would typically depend on a variety of factors. With the right mix of experience, skills, and hard work, an accountant can enjoy a rewarding career, both professionally and financially.