Business & Finance Personal Finance

The Average Salary of an Accountant With a Masters Degree

    Accounting Salaries

    • According to the U.S. Bureau of Labor Statistics, more than one million accountants and auditors are employed currently in the U.S. Of those million accountants, the average wage earned yearly is $59,430, as of 2008. The salaries of accountants, including those with master's degrees, have a broad range, which depends on factors like experience and geographic region. On the low end of the spectrum, accountants earn $36,720 per year. On the high end, they earn $102,380. The top-paying U.S. localities for accounting are in the Northeast.

    Bachelor's vs. Master's

    • In many cases, the golden ticket to high earnings in accounting is becoming a Certified Public Accountant and not necessarily having a master's degree. However, in most states, CPA candidates must have a bachelor's degree plus schooling equivalent to the number of credit hours required to complete a master's degree. So, in effect, many CPA candidates go ahead and complete a master's degree in accounting or business administration; however, starting salaries for accountants with a master's degree are generally higher than those with only a bachelor's degree. Careerbuilder states that starting salaries for accountants with a master's degree are $50,468 on average versus $45,893 without one.

    Public Accountants

    • Many accountants work in the public accounting sector. Per the BLS, public accountants earn more on average than accountants in other sectors. Public accounting firms specialize in performing audits, preparing tax returns and estate planning. Public accounting firms usually prefer that potential employees be Certified Public Accountants or at least be qualified to sit for the CPA exam. To meet the 150 credit hour requirement to sit for the CPA exam in most states, many public accountants also work toward a master's degree. A first-year staff in a public accounting firm can expect to earn between $40,000 and $50,000 per year. Mid-level public accountants typically earn $40,000 to $90,000 annually. Top tier public accountants can earn more than $300,000 per year.

    Other Areas

    • Other than public accounting, there are many areas where accountants can work. The Bureau of Labor Statistics gives data on some of these areas, including accountants working in company management, insurance accountants and accountants working in government. The wage information includes accountants with master's degrees. The average salary for an accountant working in company management is $59,820. Accountants working for local and state governments earn $51,250 and $53,660 on average, respectively. Accountants working for insurance companies take home an average salary of $59,550.

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