Certified public accountants (CPAs) work in distinct areas such as forensic accounting, tax preparation, auditing, booking, and information technology in the private and public sectors, or for the federal government. With the right amount of experience, being a certified public accountant can mean an eventual position as a chief financial officer (CFO) or a highly-paid tax accountant.
A CPA's salary usually reaches the high five figures while senior CPAs in management can earn asix-figuresalary. So, if you are a college graduate with a bachelor's degree in finance or accounting, or an entry-level accountant seeking a higher salary and more work responsibilities, you may want to consider obtaining a CPA designation.
Key Takeaways
- Certified public accountants work in areas like forensic accounting, tax preparation, auditing, booking, IT, or for the federal government.
- A CPA's salary depends on their responsibilities, company, and geographic location.
- CPAs tend to earn more than accountants.
CPA Salary Ranges
Most people pursue a CPA to take on additional responsibilities and management positions. As such, their salaries dwarf the average of most accounting graduates. We reviewed some key sources for CPA salaries and found the following:
- The Bureau of Labor Statistics (BLS) doesn't have a separate category for CPAs. But it does report information about accountants and auditors. The median salary for these professionals was $79,880 in 2023.
- Indeed reported an average annual salary for CPAs of $96,779 in 2024.
- The average annual CPA salary was $122,229 in 2024, according to the Accounting Institute for Success.
Of course, a CPA's experience and education make a big difference in how much they earn. The company they work for and their geographic location also impact their earning potential.
- Entry-Level CPA: According to the Accounting Institute for Success, entry-level CPAs make on average anywhere between $80,000 and $111,000, depending on the position and size of the company.
- Senior-Level CPA: A CPA with over four years under their belt may make between $119,000 and $200,000, depending on their experience.
- Manager or Director With a CPA: According to the BLS, top executives earn between $136,000 and $240,000. Other senior jobs for experienced CPAs are roles in executive management, which can command six-figure salaries. According to the BLS, the median salary for chief executives was $179,520 for 2021.
California, New York, Texas, Florida, and Pennsylvania employ the most accountants and have the highest salaries in the U.S. The average annual salary in these states was as follows: New York ($113,310), California ($100,560), Texas ($88,820), Pennsylvania ($83,430), and Florida ($83,760).
Accounting Salary Ranges
If you are an accountant, you'll find a CPA salary is higher because this designation enhances your role. Holding a CPA license opens doors to various and well-paying careers. Obtaining a CPA license (and a CPA salary) requires a significant investment of time and energy, not to mention a commitment to continuing education, so it's critical to understand the potential payoff before pursuing it.
But, there is a wide range of jobs and salaries for people working in accounting without a CPA designation.
- Bookkeeping, Tax Preparation, and Payroll Services: The median annual wage for accountants working in bookkeeping, tax preparation, and payroll services, was $79,410.
- Insurance Companies and Finance: General services accounting for insurance companies and finance-focused businesses pay their accountants well. The median annual wage is slightly higher than those who work in tax preparation at $83,250.
- Government Jobs: Accounting positions for the government bring in a lucrative median annual salary of $79,130. Roughly 8% of all accountants and auditors worked for the government as of 2023.
- Junior Tax Associate/Accountant: Many accounting graduates can become junior tax associates or accountants. Tax-related fields can provide a stepping stone to more lucrative jobs. A junior tax associate needs to know about federal, state, and local tax regulations and how to prepare tax returns and other tax-related documents on behalf of individuals or companies. The annual median salary for this field was $58,530 in 2023.
While the Bureau of Labor Statistics reports that the median U.S. salary for accountants and auditors was $79,880 in 2023, individuals in the lowest 10% of the range earned less than $50,440, and those in the highest 10% earned more than $137,280.
That's a huge range because the title broadly covers varying responsibilities. Senior accountants and auditors with high levels of responsibility are typically CPAs. Given their level of responsibilities, CPAs are generally on the higher end of this salary range. CPAs may have more flexibility than their peers given the cyclical nature of their jobs (i.e., some times of the year are busier than others), according to the American Institute of CPAs.
The BLS estimates that jobs in the accounting sector are projected to grow at around 7% per year through 2030.
CPA vs. Accounting Education and Careers
All CPAs are accountants. But, not all accountants are CPAs, and it is easier to become an accountant than a CPA. According to the AICPA, which administers and scores the test, most states allow anyone to hold an accountant's title. Meanwhile, to be granted a license, CPAs must meet certain educational requirements, have experience, and adhere to professional ethics. They must also pass the Uniform CPA Exam.
Candidates must complete 150 semester hours of education, as well as any other specific state requirements. Depending on the program, this entails having an undergraduate degree and some graduate courses. Some programs also require a graduate degree in accounting or a master of business administration (MBA) with a focus on accounting.
Certified public accountants can find work within international financial firms or the government and typically will earn more than an accountant without the designation.
Companies tend to value the higher standard to which CPAs are held. Once licensed, CPAs are the only individuals who can complete the required audits at public companies. They are generally more educated than their peers. With that in mind, broad accounting salaries are misleading. An important difference between an average accountant and a CPA is that only the latter can write up an audited financial statement. This is an important reason why CPAs are in demand at large companies that need to provide audited statements.
How Much Does a CPA Make in a Year?
It depends on where you live and work. A CPA in New York could make over $100,000, but a junior accountant in a different state might only make a median salary under $50,000.
Can CPAs Make Six Figures?
Usually, senior CPAs in management positions will earn over $100,000 on a regular basis. Most CPAs can expect to earn in the high five figures.
How Much Do CPAs Make at the Big Four?
The Big Four refers to the four largest accounting firms in the U.S., according to their revenue. These four are Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and KPMG. All four companies offer tax and management consulting, legal advisory services, valuation, market research, and assurance. The average annual salary for accountants at these four firms was $75,062, according to ZipRecruiter.
Is a CPA a Good Career?
Yes, if you like math, taxes, and accounting. Certified public accountants are usually in demand, and a good CPA can pull in a high five-figure salary. Plus, if they decided not to work for a large company, they could set up shop on their own. This career offers work opportunities in various public and private sectors, from the government to information technology.
Is a CPA a Stressful Job?
Certified public accountants are in demand and often more educated than general accountants, but they work long hours, especially during tax time, if they work in taxation. The higher salaries often mean more responsibilities at work, which could cause stress, but it depends on the individual.
The Bottom Line
Becoming a CPA is a good idea for many accounting professionals. Still, it makes the most sense for those seeking to climb the corporate ladder and further educate themselves in accounting. It takes time and effort to earn a CPA designation and therefore to earn an attractive CPA salary.
Employers require CPAs for many senior-level finance positions because it shows that a candidate has ambition and intelligence. Therefore, the greatest monetary rewards of a CPA may come years down the line. CPAs in non-management positions can expect to earn up to 15% more than their peers but can also expect long hours and added responsibility and pressure.
