Accountant

Accountants earned a median salary of $79,880 in 2024, with top earners clearing $130,710 and projected job openings of 126,500 per year.

Whether you are balancing the books for a Fortune 500 company or helping a family file their taxes, accounting remains one of the most stable and in-demand business careers in the United States. This guide covers what accountants actually do, how much they earn by state, CPA and other certification paths, and how to break into the profession.

What Does an Accountant Do?

Accountants examine, analyze, and interpret financial records to prepare statements, ensure regulatory compliance, and provide strategic advice to businesses and individuals. The work touches virtually every industry because every organization needs someone tracking money in and money out.

Core responsibilities include:

• Preparing financial statements – compiling balance sheets, income statements, and cash flow reports that reflect an organization’s financial health
• Tax preparation and planning – calculating tax liabilities, filing returns, and advising clients on strategies to minimize tax burden legally
• Auditing – examining financial records and internal controls to verify accuracy and compliance with GAAP, IFRS, or government regulations
• Budgeting and forecasting – working with management to develop budgets, project revenue, and identify cost savings
• Regulatory compliance – ensuring that financial practices meet federal, state, and industry-specific regulations including SEC requirements for public companies
• Advisory services – counseling clients on mergers, acquisitions, business valuation, forensic accounting, and risk management

Accountants work across four main tracks: public accounting (audit and tax at firms like the Big Four), corporate accounting (internal finance departments), government accounting (IRS, GAO, state agencies), and forensic accounting (fraud investigation).

A Day in the Life of an Accountant

A typical day varies by specialization and time of year, but most accountants split their time between analysis, communication, and documentation.

A staff accountant at a mid-size company might start the morning reviewing journal entries and reconciling accounts from the previous day. Mid-morning involves a meeting with the accounts payable team to resolve vendor discrepancies. After lunch, they pull data from the ERP system to build a variance analysis report comparing actual expenses against budget. The afternoon wraps up with preparing month-end closing entries and responding to audit document requests.

A tax accountant in public practice during busy season (January through April) works a very different schedule. Days run 10 to 14 hours, reviewing client documents, preparing individual and business returns in software like UltraTax or Lacerte, and communicating with clients about missing K-1s or unusual deductions. Outside tax season, the pace slows significantly, with time dedicated to tax planning consultations and continuing education.

A forensic accountant might spend the day tracing transactions through bank records, building spreadsheets that document a chain of financial irregularities, and preparing reports for litigation. The work requires both accounting knowledge and investigative discipline.

Accountant Salary and Job Outlook

Source: U.S. Bureau of Labor Statistics, 2024 data.

Salary by Experience Level

Top-Paying States for Accountants

Accountants in major metro areas like New York City, San Francisco, and Washington D.C. consistently earn 15-25% above the national median. However, cost of living should factor into any location comparison.

Demand Hotspots

Texas, Florida, and California employ the highest total number of accountants due to sheer business volume. States with growing startup ecosystems and no state income tax (Texas, Florida, Tennessee) are seeing increased demand as companies relocate.

How to Become an Accountant

Education Pathways

Bachelor’s degree (required for most positions). A four-year degree in accounting, finance, or a related field is the standard entry point. Coursework covers financial accounting, managerial accounting, taxation, auditing, business law, and accounting information systems.

Master’s degree or 150-credit-hour requirement. Most states require 150 semester hours of education to sit for the CPA exam – 30 hours beyond a typical bachelor’s degree. Many students complete a Master of Accountancy (MAcc) or MBA with an accounting concentration to meet this requirement. Some universities offer integrated five-year programs.

Associate degree. A two-year degree can qualify you for bookkeeping and junior accounting roles, particularly in small businesses or as a stepping stone to a bachelor’s program.

Timeline from Start to Working

Estimated Training Costs

• Public university bachelor’s (in-state): $40,000 - $80,000 total
• Private university bachelor’s: $120,000 - $200,000 total
• MAcc program: $20,000 - $60,000 (one year)
• CPA exam fees: $1,000 - $3,000 (four sections plus application)
• CPA review course: $1,500 - $3,500 (Becker, Wiley, Roger)

Certifications That Matter

CPA (Certified Public Accountant)

The CPA is the gold standard in accounting and the only credential that allows you to sign audit opinions and file reports with the SEC.

• Requirements: 150 semester hours of education, passing the Uniform CPA Exam (four sections: AUD, FAR, REG, BAR), and 1-2 years of supervised experience (varies by state)
• Exam format: Computer-based, each section is 4 hours. Pass rate hovers around 45-55% per section
• Cost: $1,000-$3,000 for exam fees plus $1,500-$3,500 for a review course
• Salary impact: CPAs earn 10-15% more than non-CPA accountants on average
• Renewal: 40 hours of continuing professional education (CPE) per year in most states

CMA (Certified Management Accountant)

Best for accountants working in corporate finance and management roles rather than public accounting.

• Requirements: Bachelor’s degree, two years of management accounting experience, pass two-part exam
• Cost: $1,000-$2,500 for exam and fees
• Salary impact: CMAs report median earnings approximately 31% higher than non-certified peers (IMA data)

CIA (Certified Internal Auditor)

The standard for internal audit professionals.

• Requirements: Bachelor’s degree, two years of internal audit experience, pass three-part exam
• Cost: $1,000-$2,000 for exam fees
• Administered by: The Institute of Internal Auditors (IIA)

EA (Enrolled Agent)

IRS-issued credential for tax specialists. EAs can represent taxpayers before the IRS.

• Requirements: Pass three-part Special Enrollment Examination or have IRS employment experience
• Cost: $600-$1,000 for exam fees
• No degree required – making this an accessible credential for tax preparers

Skills and Tools

Technical Skills

• Generally Accepted Accounting Principles (GAAP) and IFRS
• Tax code knowledge (federal and state)
• Financial statement preparation and analysis
• Internal controls and audit procedures
• Cost accounting and budgeting
• Data analysis and financial modeling

Soft Skills

• Attention to detail and accuracy
• Analytical and critical thinking
• Written and verbal communication (explaining numbers to non-financial stakeholders)
• Time management (especially during busy season)
• Ethical judgment and professional skepticism
• Client relationship management

Software and Tools

• ERP systems: SAP, Oracle NetSuite, Microsoft Dynamics
• Accounting software: QuickBooks, Sage, Xero
• Tax software: UltraTax, Lacerte, Drake, ProConnect
• Spreadsheets: Microsoft Excel (pivot tables, VLOOKUP, macros are essential)
• Data analytics: Tableau, Power BI, Alteryx, IDEA
• Audit tools: CaseWare, TeamMate, AuditBoard

Work Environment

Settings

Accountants work in accounting firms (from Big Four to local practices), corporate finance departments, government agencies (IRS, GAO, FBI, SEC), nonprofit organizations, and as self-employed practitioners. Most work is office-based, though remote and hybrid arrangements have become widespread since 2020.

Schedule

Standard 40-hour weeks for most of the year, with significant overtime during busy season. Public accounting busy season (January-April for tax, January-March for audit) regularly involves 50-70+ hour weeks. Corporate accounting peaks during month-end, quarter-end, and year-end close periods.

Pros and Cons

Pros:

• Strong job stability – every organization needs accountants
• Clear career progression with measurable milestones
• CPA credential is portable across states and industries
• High demand means multiple job offers for qualified candidates
• Diverse specialization options (tax, audit, forensic, advisory)

Cons:

• Busy season hours are demanding, especially in public accounting
• The work can be repetitive, particularly at junior levels
• 150-hour requirement adds time and cost to CPA path
• Automation is changing routine bookkeeping tasks (though creating demand for higher-level analytical skills)
• Public accounting firm culture can be high-pressure with aggressive deadlines

Career Advancement

Typical Progression

1. Staff Accountant (0-2 years) – $50,000-$65,000. Prepare journal entries, reconciliations, and support senior team members
2. Senior Accountant (3-5 years) – $65,000-$90,000. Lead audit engagements or complex tax returns, supervise staff
3. Accounting Manager (5-8 years) – $85,000-$115,000. Manage a team, oversee month-end close, report to controller
4. Controller (8-12 years) – $110,000-$160,000. Oversee all accounting operations, financial reporting, and internal controls
5. VP of Finance / CFO (12+ years) – $150,000-$300,000+. Strategic financial leadership, board reporting, capital markets

Specialization Paths

• Tax: Personal taxes to corporate tax planning, transfer pricing, international tax
• Audit: External audit to internal audit, SOX compliance, IT audit
• Forensic: Fraud investigation, litigation support, anti-money laundering
• Advisory: Transaction services, valuation, restructuring, consulting
• Government: IRS agent, GAO auditor, FBI financial crimes

Related Careers

• Financial Analyst – $99,890 median
• Business Administration – $101,280 median
• Office Administrator – $41,000 median (entry-level stepping stone)

Browse all Business & Technology Careers.

Professional Associations

• American Institute of Certified Public Accountants (AICPA) – Primary professional body for CPAs. Offers CPE, technical resources, and the CPA exam. aicpa-cima.com
• Institute of Management Accountants (IMA) – Professional association for management accountants and CMAs. imanet.org
• The Institute of Internal Auditors (IIA) – Global organization for internal audit professionals. theiia.org
• National Association of State Boards of Accountancy (NASBA) – Coordinates CPA exam administration and licensing across states. nasba.org
• State CPA societies – Each state has its own CPA society offering networking, CPE, and advocacy (e.g., NYSSCPA, CalCPA, TXCPA)

Frequently Asked Questions

Do I need a CPA to work as an accountant?

No. Many accountant positions do not require a CPA license. However, CPAs earn more on average, have broader career options, and are the only professionals allowed to sign audit opinions or file certain reports with the SEC. If you plan to work in public accounting or advance into senior roles, the CPA is strongly recommended.

How long does it take to become a CPA?

Most people complete the process in 5-7 years after high school: four years for a bachelor’s degree, one additional year to reach 150 credit hours (often through a master’s program), and 1-2 years of supervised work experience. The CPA exam itself takes most candidates 12-18 months to pass all four sections.

Is accounting being replaced by automation?

Routine bookkeeping and data entry tasks are increasingly automated. However, this shift is creating more demand for accountants who can analyze data, advise clients, implement technology, and handle complex judgment-based work. The BLS projects 126,500 annual openings through 2032, reflecting both growth and replacement needs.

What is busy season really like?

In public accounting, tax busy season (January through April 15) typically means 55-70 hour weeks. Audit busy season (January through March) can be similarly intense. Corporate accountants experience shorter crunch periods around month-end and quarter-end close. Many firms now offer compressed schedules or additional PTO after busy season to compensate.

Can I become an accountant with an associate degree?

An associate degree qualifies you for bookkeeping, accounting clerk, and accounts payable/receivable roles. These positions provide valuable experience but typically pay less ($35,000-$50,000) and have limited advancement ceiling. A bachelor’s degree is needed for most staff accountant positions and is required to pursue the CPA.

What is the difference between an accountant and a bookkeeper?

Bookkeepers record daily financial transactions and maintain ledgers. Accountants analyze, interpret, and report on financial data, and they provide strategic advice. Accountants typically require a bachelor’s degree, while bookkeepers may work with an associate degree or certificate. CPAs can perform audit and attestation services that bookkeepers cannot.

How much does the CPA exam cost?

Total costs including exam fees ($800-$1,500 depending on your state), application fees ($50-$200), and a review course ($1,500-$3,500) typically run $2,500-$5,000. Many employers reimburse exam costs and review course fees upon passing.

Which accounting specialization pays the most?

Forensic accountants and those in advisory/transaction services at Big Four firms tend to earn the highest salaries. Partners at major accounting firms can earn $300,000-$1,000,000+. In corporate settings, the controller-to-CFO path offers the highest compensation trajectory.

Compare accounting programs near you. Program availability, tuition, schedules, and requirements vary by school and state. Contact programs directly to confirm details.

Notice an update we should make?
We strive for accuracy. Contact us here if you see incorrect or outdated info on this page.