Benchmark your accounting salary against the average

Most accountants likely feel it's challenging to accurately benchmark their compensation against industry averages.

Fortunately, this post provides a detailed guide for accounting professionals to evaluate their salary in relation to key benchmarks, and negotiate better pay.

You'll discover average salaries for accountants across experience levels, states, and specializations, along with proven negotiation tactics to maximize your market value.

Introduction: Navigating the Numbers in Accounting Compensation

Vintti specializes in cost-effective recruitment of qualified accounting professionals. We understand the importance of fair salaries in attracting and retaining talent. This article explores average accounting salaries to help both employers and employees benchmark compensation.

Accounting is a specialized field requiring years of training and continuous learning. Salaries should reflect the value this expertise brings to an organization. At the same time, businesses must balance labor costs with profitability and growth. Finding the "sweet spot" requires careful analysis of industry salary averages.

According to the U.S. Bureau of Labor Statistics (BLS), accountants and auditors earned a nationwide average salary of $83,000 in 2021. This includes staff accountants, public accountants, management accountants, internal auditors, tax accountants, and more. Significant variances exist between roles, industries, locations, experience levels, and other factors.

When evaluating salaries, consider not just job titles but the actual responsibilities and qualifications required. For example, a "Senior Accountant" role may pay very differently across companies. Understanding the accounting salary range for your niche is crucial in pay negotiations. Resources like the BLS, recruitment firms, industry groups, and local contacts can provide benchmark data.

Accounting is a promising career path with strong demand. However, salaries remain competitive. Businesses must offer fair pay aligned to industry averages - perhaps with localization adjustments - to attract top talent. Employees should analyze role requirements against average incomes when requesting raises or changing jobs. In this article we delve deeper into the numbers to uncover key accounting salary trends useful to both employers and professionals.

What is average accounting income?

The Bureau of Labor Statistics (BLS) reports that the median annual wage for accountants and auditors nationally was $78,000 as of May 2022. This means that half of all accountants earned less than this amount, while the other half earned more.

Some key points on average accounting salaries:

• The top-earning 10% of accountants made over $132,690 per year
• The bottom 10% earned under $48,560 per year
• Accounting salaries can vary significantly by location, certification, experience level, and industry

When evaluating your own accounting compensation, it's important to benchmark against averages in your geographic area and industry. You can use BLS data to compare salaries by state. For example, California accountants made an average of $83,690 in 2022, while Texas accounted for $76,940 on average.

Overall, with the right qualifications and specialization, there is room for most accountants to negotiate salaries above the national median wage. Whether you're a Senior Accountant in New York or just starting out in the field, understand what you're worth by researching accounting salary averages.

Can you make 200k as an accountant?

As an accountant, earning a $200k salary is achievable but requires specialized skills, experience, and certifications. According to the Bureau of Labor Statistics, the average salary for accountants and auditors is $83,000 per year. However, the top 10% of accountants make over $154,000 annually.

Here are a few tips to reach the $200k benchmark:

Focus on high-paying accounting specializations

Certain accounting specialties tend to pay higher salaries. Positions like forensic accounting, controllers, budget analysts, and certified public accountants (CPAs) can earn well over $100k with experience. Obtaining credentials like the CPA further boosts income potential.

Develop an expertise in high-paying industries

Besides specialization, targeting key high-paying industries can grow your earnings. Sectors like banking, finance, technology, pharmaceuticals, and management tend to offer lucrative salaries for accounting and finance talent. Gaining 5-10 years of experience in these areas expands income potential.

Take on leadership roles

As you advance in your career, stepping into senior and executive-level roles such as Chief Financial Officer (CFO) or Controller dramatically increases earnings potential. But it requires exceptional expertise in areas like SEC regulations, risk management, strategic planning, and communication. Once established, salaries exceeding $200k are attainable.

Is accounting considered a high paying job?

Accounting is generally considered a stable and lucrative career path. The average salary for an accountant in the United States is approximately $73,000 per year. However, salaries can vary significantly based on factors like location, qualifications, experience, and specialization.

Some of the highest paying accounting jobs include:

• Chief Financial Officers (CFOs) - $208,000 average salary
• Certified Public Accountants (CPAs) - $120,000 average salary
• Financial controllers - $117,000 average salary
• Tax managers - $108,000 average salary

The top-paying industries for accountants on average include:

• Finance and insurance
• Management of companies and enterprises
• Government
• Accounting, tax preparation, bookkeeping, and payroll services

The top-paying states and metro areas for accountants include:

• Washington, D.C. - $94,500 average salary
• New York - $92,000 average salary
• New Jersey - $85,750 average salary
• California - $82,010 average salary
• Massachusetts - $80,500 average salary

So while accounting salaries can vary, specialized accountants working in top tier positions, industries, and locations can earn well over 6 figures annually. With the right qualifications and experience, it certainly can be considered a high paying career choice.

Can accountants make 300k?

When pursuing a career in accounting, many aspire to reach the highest levels of compensation. While possible, achieving an annual salary over $300k requires meeting stringent criteria.

Most accountants will not realistically attain such figures. However, for those with the drive to build their own firms and leverage teams to serve a large client base, breaching the $300k milestone is feasible.

As the provided example indicates, by gathering over 1,200 clients billing $250 each and working extensive hours during peak season, six-figure compensation awaits. However, this path demands tremendous effort and responsibility managing staff and operations. Additionally, income relies heavily on maintaining a sizable customer base through effective networking and referrals.

While such levels take years to reach, the potential exists for determined accounting professionals. But for most, compensation between $60k-$150k represents realistic earnings that still afford comfortable lifestyles. Ultimately, each person must decide if pursuing the top salary tier aligns with their career objectives and willingness to assume the associated effort, pressure and workload.

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Dissecting the Accounting Salary Average in the U.S.

An exploration of the accounting salary average in the U.S., breaking it down by the year, month, and hour, across different accounting roles and levels of experience.

Understanding the Accountant Salary in the U.S. Per Year

As per the Bureau of Labor Statistics (BLS), the average annual salary for accountants and auditors in the U.S. is around $79,520 per year. However, salaries can vary significantly depending on factors like:

• Job Title and Seniority: Entry-level accounting clerks may earn around $40,000 per year, while chief financial officers can make over $200,000.
• Industry: Accountants in the securities and investments sector typically have higher average salaries.
• State: California, New York, and Texas are amongst the top paying states for accountants.
• Qualifications and Certifications: Getting a CPA license or specialist qualifications can boost earnings.

So when evaluating your salary as an accountant, be sure to benchmark against roles with similar titles, experience levels and locations.

Monthly Earnings: Accountant Salary in the U.S. Per Month

Accounting for the annual salary figures, the monthly income for accountants works out to approximately $6,627 on average. However, most accountants are paid on a biweekly or semi-monthly basis.

A mid-level accountant or auditor in the U.S. can expect to earn between $3,500 - $5,500 per month after tax and other deductions. Whereas senior finance managers and directors may make $8,000 - $15,000 per month.

Geographical differences apply here too. For example, the average accountant salary in California per month is $6,208, higher than the national median.

Hourly Insights: Accountant Salary in the U.S. Per Hour

On an hourly basis, the average wage for accountants and auditors is $38.22 according to 2021 BLS data. This results in the common range of $25 - $50 per hour based on skills and experience.

Overtime and seasonal peak periods can provide opportunities for higher hourly pay rates. Additionally, accountants with niche skills like taxation, budget analysis or forensic accounting often command higher hourly wages.

Evaluating compensation on an hourly basis provides useful insight into your true earnings potential beyond just the annual salary. With competitive hourly rates, taking on additional work can be quite lucrative for accounting professionals.

The Financial Geography of Accounting: Highest Paying States for Accountants

Comparing salaries across key regions and cities, we reveal where accountants can earn the most and the regional factors at play. Using salary data from the Bureau of Labor Statistics, we analyze trends to benchmark your accounting salary average against the highest paying states for accountants.

California's Golden Numbers: Accounting Salary Average and Senior Accountant Salary

With its vibrant technology sector and sprawling entertainment industry, California offers high accountant salary average figures, especially in metropolitan regions. In 2021, accountants and auditors in California earned an average of $83,690 annually, outpacing the national average.

The San Francisco Bay Area reports the highest salaries due to the concentration of global companies and startups offering lucrative compensation packages. Senior accountants with 5-10 years experience command six-figure salaries, as high as $120,000 in the Bay Area.

The LA region also presents strong opportunities, with an average senior accountant salary of $95,000. Major studios and production companies seek accounting talent, while port trade and tourism drive demand. With California's high cost of living, employers compete to attract top talent.

The Empire State's Worth: Accountant Salary New York

An international financial center and home to Wall Street, New York offers some of the highest potential accountant salary New York rates, notably in the NYC metro region. The average salary stands at $83,530 statewide.

In NYC specifically, corporate accountants earn approximately $70,000 to start, rapidly increasing to over $100k for management roles at elite firms. The abundance of hedge funds, banks, law practices and other major corporations generates fierce demand for skilled accounting professionals.

However, New York's sky-high cost of living dampens salaries somewhat. Accountants must factor housing costs 50% above the national average when considering job offers. Overall New York presents lucrative opportunities for ambitious accountants.

Lone Star Earnings: Accountant Salary Texas

With no state income tax and a low cost of living, Texas delivers excellent quality of life for accountants. Salaries range 20% below coastal states, but remain competitive nationally.

The Dallas-Fort Worth metro region reports strong median earnings of $77,000 for accountants and auditors. Major accounting firms offer salaries exceeding $60,000 for new hires and up to $150,000 for partners.

Houston also presents opportunities thanks to port logistics and the energy sector, with average accountant salaries around $68,500. Austin's expanding technology scene pushes wages higher as well. Taken together, Texas provides a compelling mix of earning potential and affordable living.

The Pay Scale Ladder: From Junior to Senior Accountant Salary

Understanding how accounting salaries progress throughout a career is key for professionals looking to benchmark their earnings. As experience grows, so too do wages, with marked jumps at certain milestones. Here's an overview of the pay scale ladder in accounting.

Climbing the Entry Level Steps

Those just embarking in the accounting field can expect modest but livable salaries to start.

Junior Accountants typically earn average starting wages of $45,000 to $55,000 per year. Recent graduates may land roles on the lower end while candidates with internship experience or additional credentials can negotiate the higher initial rates.

With 1-3 years under their belt, Staff Accountants see pay climb to around $58,000 on average. Specialized skills or high performance can boost earnings faster. For example, Staff Accountants in California average nearly $68,000 thanks to the state's robust job market.

Overall, in the first 3 years wages usually increase by $8,000 to $15,000 through role changes, developing expertise, and well-rounded capabilities.

Senior Accountant Salary Advancement

The ascent to Senior Accountant marks a significant jump in both responsibility and salary. Seniors leverage 5-10 years of experience to command on average $73,000 to $92,000 per year.

Accounting Supervisors also land in this pay grade, providing oversight and guidance to teams while still actively working accounts themselves. Their specialized knowledge and dual hats position them as vital leaders deserving of top dollar.

As Senior Accountants approach the decade mark in their career, crossing the $100,000 threshold becomes an increasingly common benchmark in high cost-of-living states.

Leadership Leverage: Accounting Manager Compensation

Transitioning into managerial roles such as Accounting Manager or Controller introduces even higher earning potential, commonly north of $100,000. These positions trade hands-on accounting for leadership of divisions, departments, or entire organizations.

Their strategic guidance steering operational finances means these roles deliver immense value worthy of lofty salaries. Those at the helm of large, complex accounting functions can even command over $150,000 in total compensation.

For accounting professionals measuring their own salary against these benchmarks, the key is realizing earnings potential grows exponentially with focused development. Gaining diverse experience early allows for specialization later on. Soft skills in communication and leadership compound this value. Ultimately by climbing each rung while expanding capabilities, accountants position themselves to land among the top tiers of compensation.

Maximizing Your Market Value: Salary Negotiation Strategies

Armed with data and confidence, this section provides actionable advice to help accountants negotiate better salaries and benefits.

Benchmark and Build Your Case

Leveraging industry data to understand your worth and effectively communicate it during salary negotiations.

The average salary for an accountant in the U.S. is $XX,XXX per year according to the latest industry survey. This national benchmark serves as a helpful starting point to evaluate your current compensation.

Before entering into salary negotiations, do your homework to build a compelling case:

• Research accounting salaries in your city and state using reputable sources like the Bureau of Labor Statistics and recruiting firms. Salaries can vary greatly by location - for example, accountants in California earn an average of $XX,XXX while accountants in Texas average $XX,XXX. Understanding these geospecific salary ranges will strengthen your negotiating position.
• Consider compiling a salary history report of accounting roles similar to yours to quantify market rates over the past few years. This shows an understanding of broader compensation trends.
• Benchmark your salary against that of industry peers with equivalent experience and credentials to determine if you are being adequately compensated relative to others.

Equipped with authoritative industry salary data and a benchmark analysis, you can confidently initiate salary negotiations to achieve fairer pay.

Evaluate and Elevate: Comparing Against Industry Peers

Using peer benchmarks to gauge where your salary stands and identifying opportunities for increase.

While national and regional salary averages provide helpful orientation, benchmarking against industry peers in comparable roles offers a more tactical view into whether you are being fairly compensated.

Here are tips for identifying peer benchmarks:

• Connect with your professional network and accounting groups on LinkedIn or Slack to understand salary ranges for those in parallel positions. But note that while helpful, peer salaries may not translate exactly to your situation.
• Check industry salary guides and tools like Robert Half and Payscale where you can filter by job title, experience level, geography, company size and more. The granular filtering helps surface more relevant peer comparisons.
• During your annual review, prepare 2-3 industry peers who have similar backgrounds and credentials for your manager to evaluate your salary against. This provides tangible examples for requesting a pay increase rather than relying solely on aspirational figures.

Analyzing your salary against directly comparable peers gives you evidence to justify elevating your compensation, whether through raises, bonuses, or other benefits.

Quantify to Qualify: Showcasing Your Value

The importance of quantifying your professional contributions to justify a higher salary in negotiations.

While industry salary benchmarks help orient expectations, you need to complement external data with quantifying your unique value as an accounting professional within the organization.

Prepare measurable examples that showcase your contributions over the past year:

• Reduced operating expenses by $XXX,XXX through streamlining the AP process
• Identified and closed $XXX,XXX in annual cost savings opportunities
• Drove $XXX,XXX in incremental revenue by overhauling financial reporting
• Achieved X% faster period close while maintaining excellence in accuracy and compliance

Quantifying your impact in financial terms demonstrates tremendous business value provided. An employer wants to retain and motivate high-performers, so prepare data-driven examples of how your performance translates to top and bottom line gains.

You can further strengthen your case by benchmarking your contributions against industry peers:

• Compare personal KPIs like Revenue per Accountant, Expenses Managed per Accountant, Number of Audits Handled, against industry averages
• Showcase awards, media recognition, speaking engagements that exhibit external validation of your expertise

Entering negotiations armed with industry salary benchmarks along with data showcasing your differentiated value and peer leadership enables you to qualify for elevated compensation commensurate with the immense impact you drive.

Closing the Books: Your Guide to Accounting for Your Worth

As the demand for accounting professionals continues to grow, it's important to understand your earning potential and how to negotiate fair compensation. By examining industry salary averages and typical pay scales in top markets for accountants, you can benchmark your salary to determine if you're being paid competitively.

For example, the average salary for accountants in California is over $70K, compared to around $62K nationally. Besides location, pay varies based on position, industry, experience, and certifications. On average, a senior accountant can make 20% more than entry-level roles. Those with a CPA license also command higher salaries.

When seeking a raise or promotion, highlight your specialized expertise, efficiency at core accounting tasks, and any process improvements you've implemented. Quantify your contributions with metrics - e.g. "reduced filing errors by 30%". It also helps to research typical salaries for your position in your city. With preparation and professionalism, you can make a strong case for fair compensation aligned to your skills and value.

By understanding industry salary averages and typical earning trajectories, accounting professionals can benchmark their pay and take proactive steps to demonstrate their worth. Tracking your skills development and career accomplishments positions you to effectively negotiate salary increases over time. So as you advance in your career, remember to do the math and account for your true value!