In today’s dynamic and rapidly evolving market environment, the role of an accountant cannot be underestimated. Accountants act as the backbone of businesses, big and small, helping them balance their books, comply with regulations, and make informed financial decisions. Therefore, an understanding of accounting salaries is essential for both prospective accountants and businesses hiring them. In addition, being conversant with popular software like fixed assets in QuickBooks Online also adds to value to an accountants’ portfolio.
Average Accounting Salary
The average accounting salary varies considerably based on factors such as experience, location, company size, and specific roles. However, according to the Bureau of Labor Statistics, as of May 2020, the median annual wage for accountants and auditors in the U.S. was $73,560. Half of the accountants earned more than this, while half earned less. The bottom 10% of these professionals earned less than $45,220, and the highest 10% earned more than $128,680.
Factors Influencing Accounting Salary
Qualification and Experience: The level of education, certifications, and experience greatly influence the salary of accountants. For example, Certified Public Accountants (CPA) earn on average 10-15% more than non-CPAs. Individuals with a master’s degree in accounting or business administration often have opportunities for higher salaries.
Location: Geographical differences also impact the salary of accountants. Urban areas and financial hubs tend to pay higher salaries to accountants due to high demand and cost of living.
Industry: The industry in which an accountant works significantly impacts their pay. Those working in finance and insurance often earn a higher salary.
Accounting Salary and Technology
As the accounting profession continues to evolve, proficiency in industry-relevant software and technologies is becoming increasingly important. Accountants who can adapt to new technology are often offered higher salaries and better growth opportunities.
One such essential tool for accountants today is QuickBooks Online, a leading accounting software, particularly popular among small and mid-sized businesses. A critical function within it is managing fixed assets in QuickBooks Online. This software enables accountants to track the long-term items that businesses use to produce income, like buildings, equipment, and land. Being able to handle this functionality can present accountants as more technologically savvy and potentially justify a higher salary.
Future of Accounting Salary
The future of accounting professions looks promising. With the increasing complexity of financial regulations and an emphasis on business transparency, the demand for seasoned accounting professionals is bound to rise. As per the BLS, employment of accountants and auditors is projected to grow 7% from 2020 to 2030, faster than the average of all occupations. However, accountants need to adapt to the changing technological landscape to secure higher salaries and growth.
To wrap up, the accounting salary varies dramatically based on various factors and proficient use of specific accounting tools such as fixed assets in QuickBooks Online. As the role of accountants continues to be crucial for successful business operations, the demand and salary for skilled accountants are likely to see an upward trend in the future provided they keep up with the changing technology.