May 30, 2024

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How Much Do Accountants Make In 2018?

3 min read
Salary Survey 2018 what are UK accountants earning right now

The Lucrative World of Accounting

Accounting is often considered one of the most stable and financially rewarding professions in today’s job market. With the increasing complexity of financial regulations, businesses of all sizes rely on the expertise of accountants to manage their finances and ensure compliance. As we delve into the topic of how much accountants make in 2018, it is important to note that salaries can vary depending on factors such as location, experience, industry, and level of education.

The Average Accountant Salary

According to the Bureau of Labor Statistics, the median annual wage for accountants and auditors was $70,500 in May 2018. This means that half of the professionals in this field earned more than this amount, while the other half earned less. The lowest 10% earned less than $43,650, while the highest 10% earned more than $122,840. These figures demonstrate the wide range of salaries within the profession.

Experience Matters

Just like in any other profession, experience plays a significant role in determining an accountant’s salary. Entry-level accountants with less than a year of experience are likely to earn a lower salary compared to those with several years of experience. As accountants gain more experience and demonstrate their skills, they become eligible for higher-paying positions and promotions.

Industry Differences

The industry in which an accountant works can also impact their earning potential. Accountants working in the finance and insurance sector tend to earn higher salaries compared to those in other industries. This is due to the higher level of complexity in financial transactions and the increased responsibility associated with managing finances in this sector. On the other hand, accountants working in government positions or for non-profit organizations may earn slightly lower salaries.

Location, Location, Location

Geographical location is another important factor that affects an accountant’s salary. Accountants working in major cities or financial hubs often earn higher salaries compared to those in smaller towns or rural areas. This is primarily because the cost of living tends to be higher in these areas, and employers offer higher salaries to attract and retain qualified professionals. In addition, areas with a high concentration of businesses and financial institutions usually have a greater demand for accountants, resulting in higher salaries.

Benefits and Bonuses

Aside from their base salary, accountants often receive additional benefits and bonuses. These can include health insurance, retirement plans, paid time off, and performance-based bonuses. The value of these benefits can vary depending on the employer and the accountant’s level of experience. Some employers may also offer profit-sharing plans or other incentives to reward exceptional performance.

The Importance of Education

Education plays a vital role in an accountant’s earning potential. Most employers prefer candidates with a bachelor’s degree in accounting or a related field. Some may even require a master’s degree or a Certified Public Accountant (CPA) certification. Higher levels of education and professional certifications can lead to better job opportunities and higher salaries.

Future Outlook for Accountants

The demand for accountants is expected to grow in the coming years. As businesses continue to expand and financial regulations become increasingly complex, the need for skilled accountants will continue to rise. This means that accountants can expect favorable job prospects and potential salary growth in the future.

The Bottom Line

Accounting is a profession that offers solid earning potential and job security. While salaries can vary depending on various factors, the average accountant can expect to earn a competitive income. Those who invest in their education, gain experience, and stay up-to-date with industry trends will likely enjoy higher salaries and a rewarding career in accounting.

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