Employment
Accountants and auditors held about 1.2 million jobs in 2004. They worked throughout private industry and government, but 1 out of 4 wage and salary accountants worked for accounting, tax preparation, bookkeeping, and payroll services firms. Approximately 1 out of 10 accountants or auditors was self-employed. Many accountants and auditors are unlicensed management accountants, internal auditors, or government accountants and auditors; however, a large number are licensed CPAs. Most accountants and auditors work in urban areas, where public accounting firms and central or regional offices of businesses are concentrated. Some individuals with backgrounds in accounting and auditing are full-time college and university faculty; others teach part time while working as self-employed accountants or as accountants for private industry or government.
Earnings
Median annual wage and salary earnings of accountants and auditors were $50,770 in May 2004. The middle half of the occupation earned between $39,890 and $66,900. The top 10 percent of accountants and auditors earned more than $88,610, and the bottom 10 percent earned less than $32,320.
In May 2004, median annual earnings in the industries employing the largest numbers of accountants and auditors were as follows: Federal executive branch and United States Postal Service $56,900; Accounting, tax preparation, bookkeeping and payroll services $53,870; Management of companies and enterprises $52,260; Local government $47,440; State government $43,400;
According to a salary survey conducted by the National Association of Colleges and Employers, bachelor's degree candidates in accounting received starting offers averaging $43,269 a year in 2005; master's degree candidates in accounting were offered $46,251 initially. According to a 2005 salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, accountants and auditors with up to 1 year of experience earned between $28,250 and $45,000 a year. Those with 1 to 3 years of experience earned between $33,000 and $52,000. Senior accountants and auditors earned between $40,750 and $69,750, managers between $48,000 and $90,000, and directors of accounting and auditing between $64,750 and $200,750.
The variation in salaries reflects differences in size of firm, location, level of education, and professional credentials. In the Federal Government, the starting annual salary for junior accountants and auditors was $24,677 in 2005. Candidates who had a superior academic record might start at $30,567, while applicants with a master's degree or 2 years of professional experience usually began at $37,390. Beginning salaries were slightly higher in selected areas where the prevailing local pay level was higher. Accountants employed by the Federal Government in nonsupervisory, supervisory, and managerial positions averaged $74,907 a year in 2005; auditors averaged $78,890.
Related Occupations
Accountants and auditors design internal control systems and analyze financial data. Others for whom training in accounting is valuable include budget analysts; cost estimators; loan officers; financial analysts and personal financial advisors; tax examiners, collectors, and revenue agents; bill and account collectors; and bookkeeping, accounting, and auditing clerks. Recently, accountants have assumed the role of management analysts and are involved in the design, implementation, and maintenance of accounting software systems. Others who perform similar work include computer programmers, computer software engineers, and computer support specialists and systems administrators.
Common Lay Titles
Account Administrator
Accountant Manager
Accountant, Budget
Accountant, Cost
Accountant, Property
Accountant, Systems
Accounting Bookkeeper
Accounting Consultant
Accounting Manager
Accounting Methods Analyst
Accounting Systems Analyst
Accounting Technician
Asset Analyst
Bank Accountant
Budget Accountant
Bursar
Business Analyst
Certified Public Accountant (CPA)
Chartered Accountant
Chief Accountant
Consultant, Accounting
Controller
Corporate Accountant
Cost Accountant
Cost Accounting Manager
Cost Controller
Financial Accountant
Financial Adviser
Financial Analyst
Financial Systems Analyst
Fiscal Accountant
Forensic Accountant
Fund Accountant
General Accountant
Industrial Accountant
Key Account Manager
Medical Accountant
Mutual Fund Accountant
Payroll Accountant
Payroll Analyst
Plant Controller
Project Accountant
Property Accountant
Public Accountant
Railroad Accountant
Reporting Analyst
Revenue Accountant
Revenue Manager
Staff Accountant
Systems Accountant
Tax Accountant
Tax Analyst
Tax Associate
Tax Expert
Traveling Accountant
Traveling Repair Accountant
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