CPA Salary Potential in Public Accounting and Private Sector
What is a CPA salary package like? You may have pursued a CPA career because of your passion for the profession, but at the same time we all need to make a decent living job reviews Singapore from what we do in our day to day lives.
There are some stringent CPA requirements to be able to practice in this field. So if you are going to go through the effort of preparing for the CPA license requirements and taking an expensive CPA course, it just makes sense to look into the kind of money you are looking at after passing one of the most challenging professional exams out there, the Prometric CPA exam.
Not only are the CPA exam requirements stringent and expensive, but you are not done there. You also have to pass the CPA ethics exam subsequently, which means more time, more effort and more money out of your pocket. Let’s see how all this effort can pay off.
In this section I will shed some light on what CPA salaries are like, as well as the best resources that provide some of the most accurate market research data showing what CPA salaries are like in various sub disciplines and geographies, both in public accounting and the private sector (private and public companies).
Usually, starting salaries for CPAs are comparable in public accounting and the private sector. For someone with a few years experience, the salaries are a little bit higher in the public sector. However, for someone that sticks it out long term in public accounting, they are often offered a handsome premium to move to the private sector. If one sticks around long enough to become a partner, especially in a big four firm, salaries can reach a healthy mid six figure level with a very healthy bonus package. Many CPAs make well above a million dollars every year.
The Bureau of Labor Statistics (BLS) is the official entity that tracks jobs and salaries and according to them there were approximately 1.5 million CPAs in the USA in 2008. This number is supposed to surpass 2 million by 2020. Of this total, roughly 25% work in public accounting, either in audit or tax specialties. Less than 10% of these CPAs are self employed as either part time freelancers or full time consultants.
This is all just United States information. Prospects for those wanting overseas exposure is even hotter as the global demand for accountants is projected to skyrocket beyond belief, especially in emerging markets. As more economies progress and standardize their financial systems and processes, the need for qualified CPAs will only grow overtime.