When looking for an accountant, one of the most important considerations is how much they get paid. After all, higher pay often correlates with more experience, better qualifications, and superior service. So what type of accountant earns the highest salary? Here’s a quick overview of some of the best paid accounting roles.
Certified Public Accountant (CPA)
A Certified Public Accountant (CPA) is one of the most prestigious and lucrative accounting designations. CPAs must pass a rigorous licensing exam and meet experience requirements set by their state boards. They can provide services to individuals and businesses such as auditing, tax preparation, financial planning, and consulting. According to the Bureau of Labor Statistics, the average annual pay for CPAs in the United States is $77,920. However, those working in accounting firms or more specialized roles can earn well over six figures.
Chief Financial Officer (CFO)
The Chief Financial Officer (CFO) is one of the highest ranking financial positions in a company. A CFO manages all financial operations, budgeting, reporting, planning, and risk management. They provide critical data and guidance to the CEO and board of directors when making strategic business decisions. On average, a CFO earns around $163,430 according to Salary.com data. But executive level CFOs at large corporations can make over $300,000 per year.
Financial Controller
Financial controllers are responsible for overseeing all accounting operations and finances in an organization. This can include producing financial reports, maintaining records, managing budgets, and ensuring accuracy and compliance with regulations. Financial controllers have an average salary of $101,909 according to Payscale. Those working for major corporations or with advanced certifications have earning potential up to $220,000 per year.
Tax Manager
As a tax manager, responsibilities include preparing complex tax returns, developing tax strategies, conducting research, and ensuring legal compliance. Salaries for tax managers average around $115,000 but can extend up to $150,000 or higher for those managing taxes for corporations or high net worth individuals. A tax manager’s compensation often increases with certifications like a CPA or Master of Taxation.
Forensic Accountant
Forensic accountants conduct financial investigations for court cases involving fraud, embezzlement, bankruptcy, contract disputes and other legal issues. Their accounting expertise and investigative skills are valued in both the public and private sector. According to Payscale, the average base pay for a forensic accountant is $78,878. But senior level and big firm forensic accountants have earning ability up to $220,000 per year.
Internal Auditor
Internal auditors evaluate organizational risks related to fraud, operational processes, regulatory compliance, and financial reporting. Top tier auditors can earn over $117,000 on average according to the Institute of Internal Auditors. Senior corporate internal auditors and partners in CPA firms have potential compensation up to $200,000.
Investment Banker
Although more focused on finance than pure accounting, investment bankers can earn huge salaries assisting with large corporate deals, mergers and IPOs. First year investment banking analysts make around $86,000. But after 3-4 years, investment bankers can make associate level with average pay of $163,000. Senior investment bankers and firm partners at top banks can make millions per year.
Management Consultant
Management consultants use financial modeling and data analysis to guide business strategy and operations. According to Glassdoor, management consultant salaries average $112,00 but range from $62,000 for entry level up to $201,000 for senior consultants at top global firms. Specializations like risk, AI, digital transformation, and executive coaching can drive higher pay.
Actuary
Actuaries analyze financial risk in fields like insurance and investments. With complex math and predictive modeling skills, actuaries determine probabilities related to events like death, sickness, injury, unemployment or property loss. Actuary salary averages $108,350 according to the Society of Actuaries, with senior actuaries earning up to $185,000. Credentialed actuaries with FSA or ASA designations have significant earning power.
Conclusion
In summary, Certified Public Accountants, Chief Financial Officers, and specialized accounting managers tend to be some of the highest paid accounting professionals. However, many factors impact salary beyond just job title. Work experience, talent, communication abilities, professional certifications, firm size and reputation all affect earning potential. With performance and qualifications, top accountants can achieve compensation up to and beyond $200,000 in public accounting, private industry, government and niche specialty roles.
Frequently Asked Questions
What accounting certification has the highest salary?
The CPA license is the most prestigious and lucrative accounting certification. CPAs earn an average salary of $77,920 per year according to the Bureau of Labor Statistics, with many earning well into six figures depending on their role and experience.
How much do big 4 accounting partners make?
Equity partners at the big 4 accounting firms (PwC, Deloitte, EY, KPMG) can make $1-3 million per year at the peak of their careers. Salaries start lower but increase with performance and client billings.
What type of accountant is most in demand?
Due to growing business regulations and complexity, CPAs and specialized auditors are most in demand. Tax accountants also see high demand during tax season. Financial analyst and management consultant roles are growing rapidly as well.
What accounting jobs pay over 100k?
Many accounting manager, director and executive level positions pay six figure salaries over $100,000. This includes roles like Chief Financial Officer, Finance Director, Tax Director, Audit Manager, Budget Director, Controller, and Head of Accounting.
Who are the highest paid CPAs?
The highest paid CPAs are often those in leadership and equity partner roles at major public accounting firms like Deloitte, PwC and KPMG. Top M&A, tax and advisory partners can earn multi-million dollar salaries.
Do accountants really make good money?
Yes, accountants are consistently ranked among the top paying professions. The average salary for accountants in the U.S. is $83,000. With certifications and experience, accountants have significant earning ability up to and beyond $200,000.
Salary Information by Accounting Job Title
Job Title | Average Salary |
---|---|
Chief Financial Officer | $163,430 |
Controller | $101,909 |
Tax Manager | $115,000 |
Audit Manager | $97,500 |
Budget Director | $103,000 |
Forensic Accountant | $78,878 |
Financial Analyst | $63,790 |
Financial Manager | $129,890 |
Internal Auditor | $117,000 |
Investment Banker | $86,000 |
Salary Ranges by Experience Level
Experience Level | Salary Range |
---|---|
Entry Level 1-3 years | $45,000 – $75,000 |
Mid Level 3-10 years | $65,000 – $125,000 |
Experienced 10-20 years | $90,000 – $175,000 |
Executive 20+ years | $125,000 – $300,000+ |
Average Salary by State for Accountants
State | Average Salary |
---|---|
California | $83,980 |
Texas | $78,800 |
New York | $83,630 |
Florida | $75,660 |
Illinois | $80,960 |
Pennsylvania | $76,900 |
Ohio | $73,720 |
New Jersey | $89,000 |
Georgia | $75,060 |
Massachusetts | $87,360 |
Highest Paying Industries for Accountants
Industry | Average Salary |
---|---|
Finance and Insurance | $103,000 |
Professional Services | $98,000 |
Management Companies | $96,000 |
Accounting | $93,000 |
Manufacturing | $85,000 |
Technology | $82,000 |
Government | $81,000 |