CPA: High demand with great earning power

It’s a simple fact: Accounting is a high-growth opportunity right now and anyone going into the profession can look forward to significant earning potential. CPAs in particular are highly sought after by companies and public accounting firms alike. The flood of corporate scandals in the late 1990s sparked new legislation, such as Sarbanes Oxley, as well as a high demand for qualified CPAs who can help public accounting firms and corporations tighten internal controls.

So what does that mean to an accounting student? If you continue to do well in your classes, many job opportunities and higher salaries will be available to you when you graduate. CPAs in particular are demanding higher starting salaries and seeing major salary increases over time as employers place greater value on the extensive knowledge base and strategic thinking that CPAs bring to the table. A CPA salary is hard to beat and the job brings with it tremendous security over the life of a career.

How much more will I make? Recent estimates show the average annual income of a senior manager accountant/auditor is $92,873, and the average salary for accounting jobs is $59,108. Accounting professionals who are CPAs earn 27% more than their non-certified peers, according to a survey by the Institute of Management Accountants (IMA).

The survey revealed that average total compensation – including salary and other incentives such as bonuses and profit sharing – for certified accounting professionals was 31% higher than average total compensation for non-certified professionals: $123,662 compared to $94,191. In addition, IMA members holding any kind of accounting certification can expect to earn approximately $11,000 to $18,000 more annually than non-certified members during their careers.

From 2006 to 2007, average total compensation for all respondents increased by nearly 6% to $113,965, and 76% of respondents said they received additional compensation, the highest percentage in the past three years.

Look at the numbers. Below are samples of average starting salaries for accounting majors. CPAs as a rule can expect to earn 10% – 15% more.

Samples of average starting salaries for accounting graduates (0-3 years of experience):

• Public Accounting (large firm): $47,500-$66,250
• Public Accounting (medium firm): $41,500-$59,500
• Public Accounting (small firm): $40,000-$53,250
• Corporate Accounting (large co.) $36,750-$55,000
• Corporate Accounting (medium co.) $34,500-$50,500
• Corporate Accounting (small co.) $32,000-$46,750

(Source: 2008 Robert Half Salary Guide)

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