Accountant Salary Information

One of the reasons people go into accounting is to make a competitive wage; that, and let’s face it, almost everyone needs an accountant. A person can live just about anywhere in the world and still find a job if they are an accountant. Hopefully this article sheds some light on accounting salaries.

Let’s start by looking at Big 4 salaries: Keep in mind that these are averages and will vary depending on location (i.e. California pays more than Ohio because of cost of living).

Starting Salary with no experience: $50,000 plus benefits. Each year a staff accountant at the Big 4 usually gets a raise between 3-12%. These numbers have been down a little recently due to the recession.

Accountant Salary after five years with the Big 4: $80,000 plus benefits. At this point, the accountant is probably receiving 10+ headhunter calls per year.

Total Compensation for those who leave the Big 4 after only being there as a staff accountant: $140,084 per annum. Keep in mind this number is towards the end of their career.

Accounting salary for those who left the Big 4 as a manager (usually takes around 5 years to be a manager at the Big 4): $178,975.

Left the Big 4 after making Senior Manager (usually takes around 8 years to make senior manager): $208,355.

Keep in mind that those who make partner at the big four make on average around $500,000 per year.

Lessons: They overwork you and underpay you at the Big 4. However, the longer you stay at the Big 4 the more you are worth to the outside market. It is quite the conundrum.

Comparison of accountant salaries for those who work in the Big 4 and those who work in industry.

• Sr. Associate $59.8 vs Industry $61.2)
• Manager $80.8 vs Industry $85.6
• Senior Manager $120.5 vs Industry $113.6

As you can see at about the manager level Big 4 salaries start catching up with the industry. Keep in mind that those who stay to manager/senior manager in the Big 4 have a lot of opportunities to take high paying jobs in the industry and often leap-frog their counterparts in industry. If money is your only concern, then I would personally recommend staying with the Big 4 until you make partner. Partners at the Big 4 make a lot of money. If you don’t make partner, then stay until you make senior manager (if you have a pulse and are willing to stay with the Big 4 for eight to ten years then you will make senior manager) and head out to be Chief Financial Officer for some firm.

If you care about having a life outside of work, then I would not recommend the Big 4 partner route. One of the odd things about the Big 4 is that as you are promoted to higher and higher levels you actually work more and more. The partners are making $500,000 a year, but they are not lying around in Florida on a Yacht; they are working, working, working.

If work-life balance is a concern, I would recommend working for the Big 4 for three years, five if you can bare it, and then busting ship to work in industry for a measly $180,000 a year. In which case you will actually have time to be on a Yacht in Florida (although you may have to rent it).

A special thanks to USC for providing this accountant salary data.