Source: 401K
Certified Public Accountants are accountants who have passed the Uniform CPA Examination and have also satisfied state requirements for education and experience. For more information, see CPA Requirements.
Though CPAs can perform all accounting functions, their primary expertise is in auditing finances to ensure that individuals and businesses meet business and legal standards. In addition, only CPAs can prepare certain reports such as those submitted to the Securities and Exchange Commission.
Experience
According to the PayScale Report as of March 2012, CPA salary varies by experience as follows.
- New professionals earn $30,536 to $60,366 annually.
- At one to four years of work, they make $37,796 to $64,856.
- Five to nine years grants $43,963 to $83,135.
- At 10 to 19 years, they earn $48,215 to $110,229.
- And at 20 years or more, CPAs receive $48,613 to $148,131.
The following table compares the upper range of CPA salary with that of accountant salary to reveal how much the former is greater than the latter. The American Institute of Certified Public Accountants asserts that the difference in pay averages from 10 to 15 percent. However, the table shows a far higher disparity especially with greater experience, when CPAs occupy upper management positions such as chief financial officer or treasurer.
| Experience | CPA Salary | Accountant Salary |
| Under one year |
$60,336 | $51,836 |
| 1 to 4 years | $64,856 | $56,214 |
| 5 to 9 years | $83,135 | $64,241 |
| 19 to 19 years | $110,229 | $66,326 |
| 20 years | $148,131 | $70,728 |
Locations
The mean CPA salary differs by location as follows:
- For states, CPAs earn $42,053 to $102,092 in New York; $41,549 to $99,549 in California and $37,757 to $93,923 in Texas.
- For cities, the highest CPA salary runs $45,174 to $154,637 in Providence, Rhode Island; $58,793 to $147,949 in Stamford, Connecticut; and $42,282 to $129,128 in Rockville, Maryland.
- Salaries in the largest cities are $45,511 to $118,519 in New York City; $40,828 to $101,372 in Los Angeles; and $45,926 to $99,682 in Chicago.
Reference
PayScale Report: Salary for CPA Jobs
American Institute of Certified Public Accountants: Salary and Demand
Good thing you were able to show the break down on how to compute their salary. I think many people will be having their own opinion abut this concern but at least you have shared this blog to us.
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Hey Leo,
I like the site! I’m attending school for accounting right now, it looks like I made a good choice from the salary stats you have posted. Sorry it’s taken me so long to come over and check your site out. I can see that I have been missing out.
Keep up the goo work around here, Leo!
Talk again soon,
~Jeremy
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Thanks for stopping by, Jeremy. I’m honored you took a peek. Accounting is not only high-paying but also in high demand, making it an excellent course of study.
I want to finish my MBA to become an professional and earn like that..!
wow that’s really high.
i have a daughter who is in freshman college now but is not so interested in accounting
well, cant force children to study something they dont like.
wow, amazing…I believe the differences are very consistent …and it surely worths passing the CPA Examination.
This is reference, review and statistics are important to know their abilities and experiences. CPA is not an easy job, so it is also important to know this kind of information. It’s interesting for the Accountants because of the breakdown statistics information provided by them.
Your stastistics show that it is worth to be a CPA but I am sure it will take very hard work and despiration for being a CPA. Quiet good information you have shared here, seeing the salary of CPA many teens will get inspired with it. It really make a big difference in a nrmal accountant and a CPA. Thank you for this good stuff here.
I think it’s an irrefutible fact that CPA’s get paid more than accountants. The certification itself is brutal and doesn’t necessarily dictate knowledge of the individual, but it does go a long way to proving that this person has dedication and tenacity. I think that that is what a lot of managers see in CPAs.
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It’s also a tough exam to pass, Emily. Thanks for stopping by.
It is really huge difference between the salary of a normal accountant and a CPA. I am sure that after reading your blog many people were thinking to be a CPA but they never know that its not a cake walk. I appeared for the CPA Examination but didn’t succeed and got 83 marks. I’ll definitely try again my luck and my hard work. There are three tries and this is my second, I am quiet confident this time that i’ll make it this time. Wish me luck.
Good luck on trying again, Parker. A lot of folks need to try several times to pass the CPA exam.
Good luck!
I was quite surprised that there is such a difference between the two salaries, but as you say yourself, it isn’t easy to become a CPA.
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Interesting breakdown of the differences in salary – goes to show the importance of taking certifications, and I guess that’s true in any field, not just accountancy. I’m in the Uk and our chartered accountants (equivalent of CPA) earn about $150k at senior level, but that would be offset by our higher cost of living.
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Wow, the disparity in pay across the board is pretty wide. But, it certainly seems worth it to go the extra mile and become certified.
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I never knew so much information about CPA and accountant salary. I always thought that they both are the same. I am happy to know these information. Keep going with your good works.
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Thanks for the useful info. I never knew there was any difference between CPA and accountants salary.
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Nice post!… CPA Salary is bigger than normal accountant.. of course if you want to have Bigger salary for accountant you have to pass the exam.
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There is a pretty staggering birth between the new CPA’s salary and that of one that has 20+ years of experience but if you look at the bottom end pay of the most experienced CPA’s this isn’t actually the case at all. I wonder what accounts for the disparity in pay between CPA’s with at least two decades of experience.
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Very smart salary of CPA! There are a big difference between CPA and accountants salary. I just pleased to know these information. Thanks for this allocation.
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Thanks for posting these salary comparisons, I’m assuming these are all US salaries in USD?
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They are all U.S. salaries, Dave.
The difference in salaries of accountant and a CPA is huge. Average $30,536 to $60,366 annually is still a good salary for a fresher CPA. I know few accountants who said passing this exam is not that easy, what do you say?
Nelson, definitely a CPA makes more than an accountant. But it’s a difficult exam — some have to take it a few times to pass.
Hi, I contemplated learning for a computer science and becoming a programmer, but decided
to study accounting – because i a long term profession. I know the exams are very hard- but I’m sure I’ll pass them – even if it takes a few times. If you’re good and hard working – you’ll be earning
great salaries in 5-10 years.
Unlike programming, in this profession age is not your enemy. When you become older you are more respected in the market.
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