Most professionals would agree that determining an accurate salary range for public accountants can be confusing, with many complex variables to consider.
In this post, we will demystify public accountant salaries by exploring clear benchmarks across firm types, locations, specializations, and career growth trajectories.
You will see actual salary ranges based on firm size and region, understand key factors that impact compensation like certifications and experience level, and learn how to maximize your earning potential as you advance in your public accounting career.
Introduction to Public Accountant Salaries
This section provides an overview of public accountant salaries, including average salaries, factors that impact salaries, and salary benchmarks across different firms, specializations, and geographic regions.
Defining Public Accountants
Public accountants work for accounting firms and provide services like:
- Auditing financial statements
- Preparing taxes for individuals and businesses
- Consulting on financial strategy and operations
- Performing financial reporting and analysis
They serve a range of clients including corporations, governments, nonprofits, and individuals.
Average Public Accountant Salaries
The average salary for a public accountant in the U.S. is around $73,000 per year. Salaries range significantly based on:
- Experience level: Entry-level salaries start around $45,000, while senior managers and partners can earn $120,000+
- Firm size: Big 4 firms (Deloitte, EY, KPMG, PwC) tend to pay higher salaries than midsize or small firms
- Location: Accountants in high cost-of-living metro areas earn more
Key Factors Impacting Salaries
The main factors that impact public accountant salaries include:
- Years of experience: Salaries increase steadily with more years on the job
- Certifications: CPAs tend to earn 10-15% higher pay than non-certified accountants
- Specialization: Forensic accounting, international tax, and other niches often pay more
- Firm size and type: Big 4 firms pay the highest, followed by midsize national and regional firms
- Geographic location: Accountants in NYC, SF, LA earn well above national averages
Other factors like performance, billable hours, and developing new business can also impact salaries over time.
Salary Variations by Firm Type and Location
Salaries can vary significantly across different firms and geographic regions. This section explores benchmarks and ranges based on these factors.
Big 4 Firms
The Big 4 accounting firms (Deloitte, EY, PwC, KPMG) tend to pay higher salaries at all levels. For example, starting salaries for audit associates range from $55,000-$75,000.
- New hires at Big 4 firms typically start between $55,000-$75,000, with signing bonuses up to $10,000 for high performers
- Salaries increase quickly in the first few years, with yearly raises around 10% as associates gain more experience and responsibility
- Managers at Big 4 firms earn $110,000-$150,000 on average, with partners making $250,000+
- The largest differences come at higher levels - directors and partners make substantially more at Big 4 firms compared to mid-size and small firms
Mid-Size and Small Firms
Mid-size regional firms and small local firms tend to pay 10-20% less than the Big 4. Salaries levels are more compressed.
- Starting salaries at mid-size and small firms are usually $45,000-$65,000 for new associates
- Yearly raises average 5-8%, slower growth than Big 4 firms
- Managers earn $90,000-$120,000 depending on years of experience
- Partners at mid-size firms can make $150,000-$200,000, with small firm partners closer to $100,000
Salaries by U.S. Region
Salaries also vary by U.S. region, with coastal cities and financial hubs having the highest pay. For example, a manager-level accountant makes $20,000 more in NYC than Atlanta.
- Major cities like NYC, San Francisco, Chicago, and Washington D.C. pay 20-30% above national averages
- Lower salaries seen in southern and midwestern cities like Atlanta, Dallas, Detroit, etc.
- West coast salaries higher than east coast for similar roles
- Within same region, pay is 15-20% more in major metro areas than surrounding suburbs or rural areas
So in summary, Big 4 firms pay the most, followed by mid-size regional and then local accounting firms. And salaries in major coastal cities exceed the national averages across all firm types. These benchmarks help provide expected salary ranges.
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Salary Differences by Specialization
Specializing in high-demand services like M&A taxation or forensic accounting can significantly boost salary potential in public accounting. This section examines some of the top specializations and the premiums they command.
Tax Accounting Specialists
Tax accountants typically earn 5-15% higher salaries than the average public accountant. This premium reflects the high demand for tax expertise as well as the specialized skills and certifications required, such as a CPA license with a taxation focus. As tax codes grow more complex globally, accountants with advanced tax knowledge are better positioned for higher pay.
Forensic Accountants
Forensic accountants conduct in-depth financial investigations and analysis during audits, litigation support, and fraud examinations. These specialized skills allow them to command salaries 15-30% above industry averages in public accounting. Developing expertise in niche services like data analytics and fraud detection creates strong salary leverage.
International Accountants
Accountants working extensively in cross-border transactions, international taxation, and multi-national reporting can earn 10-25% more in base pay. This premium compensates them for navigating the complexities of international accounting standards, tax codes, currencies, and regulations. As business continues to globalize, the demand for these niche experts grows.
Salary Growth Trajectories
This section explores how public accountants can progress in their careers and boost salaries over time through promotions, certification, switching firms, and more.
Promotions Within Firms
Annual raises for public accountants average 3-5%, with larger jumps of 10-25% for promotions from staff to senior, senior to manager, and so on. Gaining more responsibility and moving up the ranks allows accountants to significantly increase their earnings.
For example, an accountant may start as a staff accountant making $50,000 per year. After getting promoted to senior accountant, their salary could jump to $65,000 for an immediate 30% pay increase. Further promotions to manager, senior manager, and eventually partner open the door for $100k+ salaries.
The key is to demonstrate strong technical skills, business acumen, leadership abilities and client management competencies to be considered for promotions. Obtaining certifications like the CPA also makes you eligible for more advanced roles.
Obtaining Certifications
Earning key certifications like the Certified Public Accountant (CPA) or Chartered Financial Analyst (CFA) credentials typically leads to an immediate 15-25% bump in base pay upon completion.
For instance, an accountant earning $60,000 per year could obtain their CPA and instantly increase their salary to $75,000 with the same firm. These certifications also open up additional job opportunities and career advancement potential.
The CPA specifically can increase starting salaries by $5,000 and lifetime earnings by more than $300,000 on average. The effort to pass the CPA exam pays dividends throughout an accounting career.
Switching Between Firms
Strategically switching from small to large firms or from Big 4 firms to industry jobs can unlock major salary increases.
As an example, an accountant earning $70,000 at a regional firm may be able to increase their salary to $90,000 by moving to a Big 4 firm like Deloitte, PwC or KPMG. Later, switching from public accounting into a corporate accounting role could boost their pay to $120,000+.
Evaluating external job opportunities at least every 2-3 years provides visibility into the market rate for your skills. Leveraging competing offers allows accountants to maximize salaries.
Conclusion and Key Takeaways
In summary, public accountant salaries vary based on firm, location, specialty, experience level, and more, but there is strong earnings potential over an accounting career.
Salary Ranges and Benchmarks
Use the salary benchmarks provided in this article to set appropriate expectations and salary targets when negotiating job offers or planning your career path. Key takeaways include:
- Entry-level salaries typically range from $45,000 to $60,000 at mid-size and large firms
- Managers earn $75,000 to $110,000 on average
- Partners and executives can make $150,000 to $500,000+
Keep in mind that these are general estimates and many factors impact actual compensation packages.
Factor Geographic and Firm Variables
The city and state you work in, along with the size and type of firm, significantly influence accountant salaries. For example:
- Public accountants in high cost-of-living metro areas like New York and San Francisco earn 10-20% more than the national average
- Big Four firms pay 5-15% more than mid-size regional firms for similar roles
- Firms specializing in niche services like international tax or forensic accounting tend to pay higher salaries
Evaluate your local job market and research firms carefully to benchmark potential earnings.
Specialize Strategically
Consider specializing in complex, high-value service areas in order to maximize your income potential as an accountant. Some of the most lucrative specializations include:
- International and expatriate tax
- Mergers and acquisitions
- Forensic accounting and litigation support
- Technical accounting research and standards
- Information systems auditing
Developing expertise in these areas requires advanced certifications and skills, but the investment pays dividends in terms of compensation down the line.
