In the world of accounting, secondary considerations, such as having a flexible work schedule and the ability to telecommute, used to reign supreme. Having a corner office was much more important than monetary compensation. Today’s college students, however, are asking how much do accountants make before asking any other question.
According to indeed.com, one of the world’s largest and most trusted jobs sites, accountants make, on average $64,000 per year. This amount, of course, is slightly skewed and does not represent what a newly graduated college student would earn annually.
An accountant’s salary varies drastically depending on several important factors:
- Level of Education
- Degrees and Certifications Earned
- Amount of Real World Experience
- Company Environment (Public vs. Private)
- Size of the Hiring Company
For example, according to salary.com, an entry level accountant should expect to earn anywhere from $36,000 to $52,000; with the median accountant salary being approximately $44,000. Contrast these amounts to a fifth year accountant in a lead position who earns $75,000 on average. It should be noted that these salaries assume that the prospective accountant will be employed as either a financial accountant or auditor.
Other specialized positions may have an even wider range of compensation levels.
How Much Do Accountants Make (results obtained from salary.com)
Audit Salaries
- Accountant I (Entry Level) – $44,000
- Accountant II (Intermediate Level) - $52,000
- Accountant III (Senior Level) – $64,000
- Accountant IV (Lead Accountant) – $75,000
- Audit Partner (Estimate Only) – $150,000 to $500,000
Accounting Salaries
- Accounting Clerk – $32,000
- Accounting Director – $127,000
- Accounts Payable Clerk – $34,000
- Accounts Payable Manager – $72,000
- Accounts Receivable Clerk – $33,000
- Accounts Receivable Manager – $71,000
Of course, all of these questions only partly answer the question of how much do accountants make. In addition to the specific employee’s education and experience, many employers also factor in other, intangible aspects, such as personality and dedication. Furthermore, as companies continue to streamline their day-to-day accounting functions, they may be willing to pay more for an employee that has specific software and technology knowledge or one that can speak a second, or third, language.
The Accounting Industry Environment
Despite a few significant setbacks over the past decade, such as the much publicized Enron and WorldCom accounting scandals, the accounting industry as a whole has been regaining a tremendous amount of positive attention. The American public is beginning to trust the profession again and jobs are once again being created across the nation.
