Many people only come across accountants during the tax season, but these financial specialists are busy examining and preparing financial records all year round. They’re the experts responsible for making sure taxes are paid correctly and on time, and the books are accurate. Many graduates are motivated to take up a career in accounting by the prospect of earning a comfortable living. With typical initial salaries of $26.92 per hour rising to $44.71 with experience, there is plenty of room for making a well-above-average wage.
Accountants examine financial records and look after a company’s books. Day-to-day duties include billing clients, preparing financial ledgers, creating income forecasts and budgets, making tax returns, and keeping an inventory. As an expert financial adviser, an accountant might also suggest ways to reduce costs, increase revenues, and improve a company’s profitability. Novices to the occupation generally will start out overseeing accounts payable and receivable, recording the financial transactions of a firm, managing payroll, and preparing balance sheets or financial reports. Attention to detail is mandatory.
You will need a bachelor’s degree for this occupation, preferably in accounting or a relevant field. In some cases, an account clerk or a bookkeeper with experience and an associate’s degree may advance to a junior accounting job. A CPA (certified public accountant) or credential – requiring one hundred and fifty semester hours of college coursework – is often demanded by employers. Certification proves your professional caliber and can massively boost your employment prospects.
The median hourly accounting salary is $34.40 per hour, equating to $71,550 per year as of May 2019. The median represents the midpoint, so 50 percent of all accountants make more than this per hour and a 50 percent make less. The top ten percent of accountants earn more than $120,910 per annum. However, this salary is generally reserved for those in senior positions, not basic-level accountants.
Accountants work in every field for governments, corporations, nonprofits, and individuals. Since the scope is extensive, most choose to specialize in a work type such as forensic investigation, tax accounting, a client type (wealthy private individuals, nonprofits), or industry (construction, gas, and oil). Beginners have a dizzying array of options both when they enter the sector and as their career advances. Most regard working towards the CPA credential, an entry-level job in public accounting, to be an excellent resume-builder that gives quick credibility.
How Much Do Accountants Make
Entry-level accountants make a decent income, but like many professionals, their earning potential improves with experience and time. A typical estimation for a CPA salary looks like this:
Less than five years: $26.92 per hour or $56,000 assuming 2 weeks paid leave
- 5-10 years: $33.65 per hour or $70,000
- 10-20 years:$38.94 per hour or $81,000
- 20+ years: $44.71 per hour or $93,000.
Careers in Europe: An entry-level Accountant with less than one-year experience can expect to make an average total remuneration (includes bonus, tips, and overtime pay) of £22,069. An early career Accountant with 1-5 years of experience makes an average total compensation of £26,030. A mid-career Accountant with 5-10 years of experience earns an average total compensation of £31,095. An experienced Accountant with 10-20 years of experience makes an average total compensation of £35,692. In their late-career (20 years and higher), employees earn an average total compensation of £35,590.
Careers in Asia: An entry-level Accountant with less than one year experience can expect to make an average total remuneration (includes bonus, tips, and overtime pay) of S$35,918 (Singapore). An early career Accountant with 1-5 years of experience makes an average total compensation of S$42,761. A mid-career Accountant with 5-10 years of experience makes an average total compensation of S$50,095. An experienced Accountant with 10-20 years of experience makes an average total compensation of S$55,509. In their late-career (20 years and higher), employees make an average total compensation of S$57,926.
Job Growth Trend
Accountancy is a growing and stable field that’s expected to grow by ten percent from 2016 to 2026. This above-average growth rate may lead to excellent prospects for entry-level jobs (1). The demand for accountants is majorly driven by the increasingly complex regulatory environment in which we all now live and globalization. Technology is a significant threat on the horizon. As repeated tasks become automated, accountants will be expected to move away from regular bookkeeping instead of taking on a more advisory and strategic role for their clients.