Most accounting professionals would likely agree that determining accurate salary data for roles in Alaska can be challenging.
In this post, you'll find comprehensive insights on accounting salaries in Alaska, including key metrics on compensation ranges across various roles and experience levels.
We'll explore factors impacting accountant pay like cost of living considerations, specialty areas, career growth trajectories, and the influence of emerging technologies on salaries.
Introduction to Accounting Salaries in Alaska
Accounting is a stable career path in Alaska, with demand across industries for qualified professionals. However, salaries can vary significantly depending on experience level, specific role, education, and geographic location within the state.
Overview of Accounting Salaries in Alaska
According to recent data, average base salaries for accountants in Alaska range from $45,000 for entry-level Accountant I roles to $120,000+ for CFO positions. Median pay is around $65,000 for experienced accountants. Wages tend to be higher in Anchorage and other urban areas.
Within public accounting firms, new staff accountants typically start between $50,000-$55,000. At executive levels, Partners can earn $200,000+ in some cases.
Understanding the Alaskan Accounting Job Market
As a hub for oil & gas, fishing, mining, and other industries, Alaska offers diverse accounting job opportunities. Openings exist across sectors, with strong demand for accountants knowledgeable in specialized areas like extractive industries, grants management, and non-profits.
With an aging accountant workforce nearing retirement, a wave of replacement hiring is expected in the coming decade. This will create abundant openings at all experience levels.
Educational Impact on Accounting Salaries
Earning an advanced credential like a CPA license or Master's degree can boost salaries significantly.
Accountant I's with a bachelor's typically earn $45,000-$55,000, while those with a master's can command $65,000-$75,000. High-level CPAs often reach six-figures.
Ongoing training is also valued. Accountants who invest in skills like analytics, business acumen, and software proficiency can increase their earnings potential over time.
Accounting Salary Trends and Predictions
Looking ahead, Alaska's oil revenue uncertainty creates some volatility around accounting salaries. However, with skilled talent in high demand, wages are expected to remain competitive.
Remote work options could also expand the talent pool and influence pay rates. But for now, on-site accounting jobs still dominate, with compensation packages built to retain workers and account for Alaska's high cost of living.
What is a livable salary in Alaska?
According to recent data, the livable salary in Alaska is approximately $63,269 per year. This is the income needed to cover basic living expenses in Alaska, accounting for the state's high cost of living compared to the national average.
To break this down further:
- The livable wage in Alaska equates to about $30.40 per hour for a full-time worker. This factors in food, housing, transportation, healthcare, and other necessities.
- For a single adult with no children, the livable wage in Alaska is approximately $15.34 per hour, or $31,907 annually. This covers basic living costs for one person.
- For a family of four (two adults, two children), the livable wage comes out to $16.14 per hour per adult, or $66,651 total household income. This provides a modest but adequate standard of living.
The cost of living in Alaska is 32% higher than the national average, according to data from the Missouri Economic Research and Information Center. Key reasons include:
- Housing Costs: In Anchorage, housing prices are almost 80% higher than the national median. This is a major contributor to Alaska's high cost of living.
- Healthcare: Alaska has the highest individual health insurance premiums in the U.S., about 200% above average.
- Food Prices: Groceries and dining out cost roughly 27% more in Alaska than typical U.S. prices.
So in summary, accounting for Alaska's exceptionally high cost of living compared to the Lower 48 states, a livable wage comes out to about $63,269 per year or $30.40 per hour full-time. This data gives insight into the economic realities facing Alaska residents.
How much does a staff accountant make in Alaska?
Staff accountants in Alaska earn an average annual salary of $65,613, which equates to an hourly wage of around $32. However, salaries can vary significantly depending on experience and credentials.
Here is a breakdown of common staff accountant salary ranges in Alaska:
- Top Earners (75th Percentile): $78,100 per year or $38 per hour
- Average Salary: $65,613 per year or $32 per hour
- Entry-Level (25th Percentile): $59,200 per year or $28 per hour
Salaries also tend to be higher for staff accountants with advanced credentials:
- Staff accountants with a bachelor's degree earn approximately $62,000 per year on average
- Those with a master's degree or MBA can expect closer to $68,000 per year
Some factors that can increase pay for Alaska staff accountants include:
- Years of experience: More seasoned accountants command higher salaries
- CPA certification: Getting a CPA license typically leads to a pay bump
- Industry specialization: Experience in a specific field like manufacturing, healthcare, etc.
- Managerial duties: Overseeing teams or entire accounting departments
So in summary, while the average staff accountant salary in Alaska is around $65,613, pay can stretch higher into the $90-100K range for those with advanced credentials and specializations. However, even entry-level accountants tend to earn nearly $60,000 per year on average.
What's the highest paid type of accountant?
The highest paid accounting roles typically require significant education and experience. According to salary data, some of the top paying accounting jobs include:
Chief Financial Officer (CFO)
With 10+ years of experience, CFOs can earn $141,000 - $400,000 per year. CFOs oversee all financial operations and strategy for an organization.
Audit Partner
Audit partners have 15-20 years of public accounting experience. They can earn $215,000 - $360,000 as partners at large accounting firms.
Controller
Controllers with 10-15 years of experience can earn $131,000 - $278,000. They manage all accounting operations and financial reporting.
Fund Controller
Fund controllers at investment firms or hedge funds can earn over $250,000 with 10+ years investment accounting experience.
Vice President of Finance
Finance VPs with 15+ years of experience earn $150,000 - $300,000. They analyze financial data to guide business strategy.
The highest salaries require deep accounting expertise, leadership ability, and proven success managing complex finance functions for large organizations. Geographic location, company size/revenue, and industry can also impact pay.
Which state has the highest paid accountants?
According to the Bureau of Labor Statistics, the highest paying states for accountants and auditors are:
- District of Columbia - With an average annual salary of $105,240
- New York - $89,500
- New Jersey - $88,180
- Virginia - $87,960
- California - $87,250
The high salaries in these areas are likely driven by the concentration of large corporations and financial services firms located in major metropolitan cities like New York City, Washington D.C., and San Francisco. These firms have complex accounting and finance needs, driving demand for highly skilled accounting professionals.
The cost of living in these states, especially New York and California, is also significantly higher compared to other parts of the country. So while the salaries are among the highest, the actual purchasing power of those salaries is lower once adjusted for costs.
Some factors that contribute to the lower average salaries in other states include:
- Lower demand and fewer job openings for accountants
- Smaller corporations and businesses with less complex accounting needs
- Lower costs of living and overhead expenses
So while states like Alabama or Idaho may pay accountants $20,000 - $30,000 less on average, the lower salaries likely align with most firms' accounting requirements and budgets.
Ultimately, accounting salaries can vary quite drastically between states and cities. Job seekers should weigh factors like job availability, cost of living, and career growth potential when considering locations to target in their job search.
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Accountant I to IV: Salary Breakdown
Accounting salaries in Alaska can vary significantly depending on the role, experience level, education, and industry. Here is a detailed breakdown of the salary ranges for Accountant I through Accountant IV positions:
Accountant I Salaries with a Bachelor's Degree
An Accountant I with a bachelor's degree and less than 1 year of experience can expect to earn between $45,000 and $55,000 per year. This entry-level role handles basic accounting tasks like A/P, A/R, journal entries, account reconciliations, and financial reporting support. With Alaska's high cost of living, salaries tend to be 10-15% higher than the national average.
Advancing to Accountant II: Salary Increase Expectations
As an Accountant I gains 2-4 years of experience and demonstrates strong technical competency, they typically progress to the Accountant II level. This role takes on more complex assignments like variance analysis, forecasting, and special projects. The average salary bump is $8,000 to $12,000, putting Accountant II compensation in the $55,000 to $65,000 range.
Senior Roles: Plant Accountant and Accountant IV Compensation
A Plant Accountant or Accountant IV has 5+ years of accounting experience and acts as a department lead handling vital functions like budgeting, financial reporting, and system implementations. Average salaries exceed $70,000, with top performers earning over $80,000. Additional compensation may include annual bonuses between 5-10% and 3-4 weeks of PTO.
The Top Tier: Plant Controller Salary Insights
The Plant Controller is the head of the accounting department, often reporting directly to the CFO. This highly experienced role oversees all accounting operations, financial reporting, and strategic initiatives. Plant Controllers earn $90,000 to $120,000 on average. They also qualify for executive benefits packages, including stock options, 4+ weeks of vacation, company vehicles, and expense accounts.
Overall accounting salaries in Alaska trend higher than the lower 48 states due to economic factors like cost of living, labor supply/demand dynamics, and thriving industries like oil & gas, fishing, mining, and tourism. However, the state does face challenges of higher turnover and difficulty attracting long-term talent from out of state.
Specialized Accounting Roles and Salaries in Alaska
Alaska's economy relies heavily on industries like oil and gas, fishing, mining, and tourism. This drives demand for accountants with specialized expertise to support these key sectors. Here's an overview of some common accounting roles and their earning potential in Alaska.
Cost Accountant I and Financial Reporting Accountant I Earnings
Entry-level cost and financial reporting accountants typically earn between $55,000 and $65,000 in Alaska. While cost accountants analyze operating expenses and prepare financial reports, financial reporting accountants specifically focus on preparing regulatory filings and financial statements. Both roles require attention to detail, analytical skills, and knowledge of accounting standards.
With 1-3 years of experience, salaries for these positions often rise to $70,000 or more. Strong technical skills, industry knowledge, and a CPA license can boost earnings.
Grants Accountant and Investment Accountant Salary Data
Grants accountants handle financial reporting, compliance, and administration of government and private grants. With Alaska's reliance on public funding, these roles earn $65,000 to $85,000 depending on experience.
Investment accountants support portfolio management and investment analysis activities. They earn comparable salaries to grants accountants. Specialized credentials like the CFA can increase pay.
Small Business Accountant and Corporate Staff Accountant Pay Scale
Accountants working with Alaska's many small businesses and startups typically earn $60,000 to $75,000. Roles supporting mid-size corporations pay $70,000 to $90,000.
Small business accountants need to handle a wider variety of accounting tasks. Corporate staff accountants focus more narrowly but work with larger budgets and stakeholders.
The Gender Pay Gap in Accounting Salaries
Like many industries, a stubborn gender pay gap persists in Alaska accounting. Female accountants earn around 5-10% less than male peers in similar roles.
Addressing this gap will require a culture shift. Companies need to re-evaluate compensation practices and ensure equal pay for equal work. Promoting more women into accounting leadership roles could also help narrow the divide.
With high demand for accountants, Alaska provides solid career potential. Understanding role requirements and pay dynamics can help professionals evaluate opportunities.
Cost of Living in Alaska and Its Impact on Accounting Salaries
Alaska's high cost of living significantly impacts the real wages of accounting professionals. Key factors like housing, utilities, transportation, and connectivity expenses make financial stability challenging.
Housing and Utility Costs for Accountants in Alaska
Housing costs in Alaska are 53% higher than the national average. This strains accounting salaries, as housing accounts for 24% of an Alaskan household budget on average compared to 19% nationwide. Utility expenses are also considerably higher due to the long, harsh winters. On average, accountants in Alaska spend 14% of their income on utilities compared to 9% nationally.
High rents and utility bills make it difficult for accounting professionals to accumulate savings and wealth. Strategies like roommate shares, smaller living spaces, and budget tracking are often necessary to offset these large fixed costs.
Transportation and Connectivity Expenses
Public transportation is limited in Alaska and owning a car is essential, especially in remote areas. Auto insurance premiums run 20-30% higher than the national benchmark. Connectivity expenses are also inflated, with internet access costing $84 per month on average.
These elevated costs for basic transportation and communication needs put further strain on accounting wages. Professionals must carefully weigh expenses or risk financial instability.
Employee Flight Risk Due to High Living Costs
The burden of elevated living expenses drives high turnover among Alaska's workforce. Over 8,000 more people moved out of the state than moved in during 2018 alone according to the Alaska Department of Labor and Workforce Development.
Surveys by staffing agencies like Vintti indicate over 65% of accounting professionals see Alaska's high cost of living as the primary reason they eventually relocate. Businesses struggle to retain talented accountants long-term.
Salary Adjustments for the Alaskan Climate
To offset Alaska's exceptional living costs and retain accounting talent, adjusted salary ranges are imperative. Overall, accounting wages in Anchorage and other cities run 5-15% higher than national averages. However, the real wage value is often on par or below accounting salaries in lower cost-of-living areas.
Ongoing market analysis and appropriate compensation benchmarking are vital for companies to remain competitive. Partnering with specialized staffing firms can help identify qualified accountants open to Alaska's climate and cost realities.
Accounting Career Paths and Salary Progression
Accounting is a stable career with good salary potential, especially in Alaska. While starting salaries may seem low, there is ample room for growth as accountants gain experience and take on more responsibilities.
Junior Accountant Salaries and Growth Potential
Junior accountants in Alaska earn average starting salaries of $45,000 to $55,000. With 1-3 years of experience under their belt, they can expect to see salaries jump to $55,000 - $68,000 as they take on more complex assignments and progress toward a senior role. The potential for rapid salary growth makes accounting an appealing profession for ambitious professionals.
From Staff Accountant to Senior Accountant: A Salary Comparison
The average staff accountant in Alaska earns approximately $68,000 per year. After 5+ years of experience, demonstrating technical competency and management potential, staff accountants may be promoted to senior accountants. These roles command an average salary of $80,000 in Alaska, representing a nice jump in pay.
Accounting Clerk Salaries and Advancement Opportunities
Accounting clerks in Alaska earn approximately $38,000 per year on average. While accounting clerk salaries start lower than accountant roles, motivated professionals can advance to staff or senior accountant roles within a few years through obtaining additional education and on-the-job training. This represents strong upward mobility for those new to the field.
Accountant-entry Level Salaries Versus Experienced Accountants
There is a wide gap between entry-level and experienced accountant salaries. While accountant-entry level roles pay around $45,000, accountants with 5+ years under their belt see average salaries approaching or exceeding $80,000. The long-term growth trajectory makes accounting a worthwhile profession to pursue.
The Role of Technology in Accounting Salaries
Technology is playing an increasingly important role in the accounting profession. Proficiency with accounting software and emerging technologies can enable accountants to work more efficiently and provide more value, often translating to higher salaries.
Accounting Software Mastery and Compensation
Accountants who have mastered major accounting software like QuickBooks, Sage, and NetSuite are in high demand in Alaska. Expertise in these platforms allows accountants to streamline financial reporting and analysis. According to local recruiters, accountants with 3+ years of experience using accounting software see average salary increases of 5-10%.
The Value of Skills in Balance Sheet Analysis and Year-End Close
Accountants skilled in balance sheet analysis and managing the complex year-end close process earn significantly higher salaries in Alaska. These are specialized skills that help ensure financial statements are accurate and completed on tight deadlines. Accountants with expertise in these areas often earn $5,000-15,000 more in annual base pay.
Automation and Its Impact on Accounting Salaries
As automation assists with routine accounting tasks, the role of accountants is shifting towards more analytical functions. Accountants specializing in data analysis to uncover financial insights can command higher salaries. Additionally, knowledge of robotic process automation (RPA) tools is becoming increasingly valuable. Accountants able to automate repetitive manual processes may see faster salary growth over time.
Emerging Technologies and Upskilling for Higher Pay
Proficiency with emerging technologies like artificial intelligence, blockchain, and cloud computing can enhance accountants' pay potential. Alaska accounting salaries are likely to rise for those committed to continuous skills development in new technologies that improve efficiency and analysis. Firms are expected to incentivize such upskilling through salary increases.
Conclusion: Synthesizing Salary Insights for Alaskan Accountants
Key Takeaways on Accounting Salaries in Alaska
Accounting salaries in Alaska tend to be higher than national averages due to the state's high cost of living and remote location. However, actual take-home pay can vary depending on specific roles, experience levels, education, and other factors. Some key takeaways:
- Entry-level accountant salaries range from $45,000-$55,000 on average.
- Mid-career accountants earn $65,000-$85,000 typically.
- Senior accountants and controllers make $90,000+ on average.
- Specialized accountants in corporate accounting, financial reporting, etc. tend to earn higher salaries.
- Continuing education and certifications boost earning potential.
Final Thoughts on Accountant Compensation Packages
Beyond base salaries, compensation packages may include annual bonuses, profit sharing, retirement contributions, healthcare benefits, relocation assistance, and other perks. However, Alaska's climate and isolation can make attracting and retaining top talent difficult despite competitive packages. Offering remote work options could expand hiring reach. Overall, the total compensation value must offset Alaska's high cost of living.
Recommendations for Accounting Professionals
Accounting professionals in Alaska should proactively negotiate salaries, ask about full compensation packages, emphasize specialized skills/credentials, and explore remote positions to boost earnings. Comparing offers to local salary data and cost of living indexes allows assessing true take-home value. Joining regional associations provides networking and career growth opportunities in Alaska's smaller accounting community.
Accountant Job Description Template for Employers
Below is a template accounting job description highlighting key responsibilities, requirements, and preferred qualifications to aid Alaska-based employers:
Job Title: Senior Accountant
Location: Anchorage, AK
Role Description: Perform complex financial analysis, reconciliations, reporting, budgeting, auditing, and month-end close processes. Lead special projects and identify process improvements. Manage a small team.
Responsibilities:
- Prepare monthly financial statements and analyses
- Assist with annual financial statement audits
- Monitor budgets and track performance metrics
- Research technical accounting issues and recommend solutions
- Document accounting policies and procedures
- Provide support for financial systems and software
Requirements:
- Bachelor's degree in Accounting or Finance
- 5+ years professional accounting experience
- CPA preferred
- Advanced Excel skills
- Attention to detail and strong analytical abilities
- Excellent written and verbal communication skills
Preferred Qualifications:
- Experience in manufacturing industry
- Experience with NetSuite or similar ERP platforms
- Leadership and management experience
- Cost accounting or budgeting background
