For an accounting professional, having a CPA license offers numerous benefits. An improved income is one of the most appealing benefits of this license. According to the Bureau of Labor Statistics (BLS), an accountant's salary on average can be more than $70,000, but an average CPA salary ranges between $119,000 and $150,000, depending on the candidate's level of experience.

In this guide, we've put together a high-level view of the main contributing elements of salary. Read on to see how much a CPA license can increase your earning potential.

What is the average CPA salary & how much do accountants make?

On average, a CPA’s annual pay, without bonuses, is around $119,000 per year. CPAs with less than one year of experience earn an average of $70,000 a year, while those with more than 20 years of experience earn an average of $150,000 annually.

• Average Non-Certified Accountant Salary: $50,129* per year (excluding bonuses)
• Average CPA Salary: $119,000* per year

Robert Half International's salary guide mentions that accounting professionals with a professional certification or master's degree earn an average of 5% to 15% more, with CPA being the most sought-after certification. Here are the factors that Determine a CPA Salary:

Experience

A degree in accounting allows you to enter the profession immediately in a variety of fields and earn a competitive salary as an accountant. But did you know that obtaining your CPA license can open doors to more promotions, managerial opportunities, and a higher CPA salary? On average, CPAs earn 10-15% more than their uncertified counterparts.

Industry

Certified Public Accountants earn 10-15% more than non-certified ones. Salaries can be higher than average in industries experiencing a lot of growth, like financial technology or software. As a CPA, you can work in auditing, taxation, quality assurance, or advisory services for the top accounting firms, like the Big Four, well-known global companies, or smaller local firms. In recent years, certain industries like Hospitality, Healthcare, and EdTech have been growing and looking to hire accountants.

Company Size

The U.S. Department of Labor’s Bureau of Labor Statistics’ (BLS) Occupational Outlook Handbook, states that employment of accountants and auditors is expected to increase by 4 percent from 2019 to 2029. This is faster than the average for all other occupations. BLS attributes the positive employment outlook to the continued demand for qualified professionals who can prepare and examine financial records during economic growth.

Location

The larger the city, the higher the median compensation for a CPA, as cities have greater competition, opportunity, and capital. Salaries vary by geography and are greatly influenced by the state of the country's economy. Countries with a healthy economy have a high demand for financial specialists, and as a result, those positions are well compensated.

The cost of living in urban regions is greater, with certain areas being more expensive than others. Typically, larger cities provide greater access to a variety of employment opportunities, which can contribute to job satisfaction and higher earning potential.

Overall, accountants are often well-paid, so it is best to first identify where you’d enjoy living and align your wage expectations accordingly.

How Does Experience Affect CPA Salary?

Your income will gradually rise as you gain experience. Your experience and expertise are usually the most important factors in establishing your salary. As a result, the larger the compensation, the more obligations you have. However, some applicants may have less-than-average work experience. This could mean that they have been working in a low-competition industry, or that there is a need for greater development of critical skills. The average CPA salary at this stage is about $58,000.

Entry-Level CPA

The first year of experience is a significant achievement. A Certified Public Accountant’s starting salary is around $64,000, but it can range anywhere from $44,000 to $84,500 depending on where you live and work. As you gain experience, your roles and skills will determine your income. Most states require at least two years of public accounting experience to be eligible to become a CPA. You may already be certified or be in the process of being certified as a junior accountant (1-3 years).

Senior-Level CPA

After 4-6 years of experience, you become a senior accountant. You should anticipate increasing responsibilities and obligations as you grow professionally. At this point in your career, you will have begun to develop areas of focus and expertise, and your employment title will most likely reflect your specialization. Salaries in this phase of your professional development might range from $74,750 to $102,000.

Manager or Director with a CPA

After a few years in a senior position, your accomplishments and areas of expertise become more important than the number of years you've worked. To advance to positions of leadership, you must stand out. The top place on the ladder is not available to everyone. This category contains applicants with greater experience, competence and/or certification(s). Salaries for senior level roles average at about $109,750.