Average Salary of an Accountant

The area of accounting currently experiencingThe average salary of an accountant with one to
strong growth in the number of people employedthree years of experience earned $33,000 to
in the field. In 2004, accountants and auditors held$52,000, and the average salary of an accountant
about 1.2 million jobs in the United States. Theseat senior level accounting or auditing earned
numbers are expected to grow at a faster thanbetween $40,750 and $67,750. Accounting
average rate through 2014, mostly because ofmanagers were reported to be earning $48,000
the increasing number of businesses, but also dueto $90,000, and directors of accounting and
to changing financial laws and regulations, as wellauditing earned $64,750 to $200,750.
as increased scrutiny of company finances.When employed by the Federal government, the
The average salary of an accountant can varyaverage salary of an accountant varies just as
greatly through the many different fields ofmuch. According to the U.S. Department of Labor,
accounting. An average salary of an accountantthe average salary of an individual working as a
depends much on not only which area ofjunior accountant or auditor in 2005 was $24,677.
accounting the accountant is employed, but alsoThose who had a superior academic record might
the geographic region in which the accountant isstart at $30,567, while accountants with a
employed. For example, accountants, andmaster's degree and/or two or more years of
especially Certified Professional Accountantsprofessional work experience as an accountant
(CPAs), in large metro areas will earn more thanusually start at a salary of $37,390. Initial salary
CPAs in smaller cities nationwide.bases were slightly higher in selected areas where
According to the United States Department ofthe prevailing local pay level was higher, such as in
Labor, the average salary of an accountant, orlarge metro areas. Accountants employed by the
the median wage and salary earnings of anFederal government in a nonsupervisory,
accountant or auditor, was $50,770 in May 2004.supervisory, or managerial position made an
The middle half of the occupation earned betweenaverage of $74,907 per year in 2005, and
$39,890 and $66,900. The top 10 percent ofauditors earned an average of $78,890 that same
accountants and auditors earned more thanyear.
$88,610 annually, and the bottom 10 percentAccountants and auditors that are self employed
earned less than $32,320. The U.S. Department ofor earn their own firms may have an upper end
Labor also collected median annual earnings fromor lower end salary, depending on the size of their
May 2004 in the industries that currently employfirm, their geographic location, the number of
the largest number of accountants and auditors,clients serviced, and other factors. Earning
and the average salary of an accountant in thesepotentials and the average salary of an
areas is as follows:accountant who is self employed can vary greatly
Federal Executive Branch of the government andbecause of these reasons. A more experienced
the United States Postal Service - $56,900accountant has the opportunity to have a larger
Accounting, tax preparation, bookkeeping, andfirm and more clients, thus earning more money,
payroll services - $53,870than an accountant who is just starting out in the
Management of companies and enterprises -field. It is because of this that many accountants
$52,260begin their careers working for other firms, and
Local government - $47,400start their own firm once receiving experience, as
State government - $43,400well as compensation, in the field.
According to a salary survey reported by theOther factors may play a key role in determining
National Association of Colleges and Employersthe average salary of an accountant. Not only
(NACE), candidates for bachelor's degrees, soondoes geographic location and the job position or
to be graduating in the field of accounting,work experience affect the average salary of an
received starting wage offers from a variety ofaccountant, but other things may also affect
sources averaging $43,269 per year in 2005, andsalary, such as level of education obtained by the
master's degree candidates in accounting wereaccountant, as well as Certified Public Accountant
offered $46,251 as an initial average wage.(CPA) certification. Generally, those with master's
The varied salary levels of different positions indegree and more experience will receive higher
the accounting field greatly affects the averagesalary levels and obtain a higher level job
salary of an accountant. A 2005 salary survey byresponsibility position in the work place. Those that
Robert Half International, a staffing services firmare CPAs also tend to receive higher salaries, and
specializing in accounting and finance, accountantstherefore, the average salary of an accountant is
and auditors with up to one year of workalmost a gray area due to all of the factors
experience earned $28,250 to $45,000 annually.involved.