How Much Do CPAs Make?

If you are an accountant, you’ll find a CPA salary is higher because this designation enhances your role. Obtaining a CPA license (and a CPA salary) requires a significant investment of time and energy, not to mention a commitment to continuing education, so it’s critical to understand the potential payoff before pursuing it. No, an MBA is an academic degree focusing on broad business management skills, while CPA certification requires specific accounting coursework, passing the CPA exam, and meeting experience requirements. However, an MBA with a concentration in accounting can help prepare for some of the CPA requirements.

• Usually, senior CPAs in management positions will earn over $100,000 on a regular basis.
• The choice that’s right for you depends on your interests, likes and dislikes, and the trajectory of your career.
• “Every emerging thing that comes in an organization—the accountant is front and center to the importance,” Abrash says.
• This choice involves two distinct paths—one an academic degree and the other a professional designation.
• Usually, CPA-certified professionals develop a knack for crunching numbers as their day-to-day job involves reviewing a large volume of accounting details.

Career Opportunities with a CPA

Therefore, the greatest monetary rewards of a CPA may come years down the line. CPAs in non-management positions can expect to earn up to 15% more than their peers but can also expect long hours and added responsibility and pressure. Still, it makes the most sense for those seeking to climb the corporate ladder and further educate themselves in accounting.

School attended

Conversely, CPAs boast a wide salary range from $54,000 to over $200,000, reflecting the high demand for their specialized knowledge in accounting, tax, and financial management. The average CPA salary is approximately $109,000, marking a significant premium over non-certified accountants. If you cpa vs mba salary plan to work at a larger company or pursue a management role rather than as a tax preparer or a public accountant in private practice, an MBA in accounting may be a good choice. In terms of career advancement, people who hold the CPA designation and an MBA degree may stand out to employers.

CPA vs. MBA Graduate Curriculum

US News & World Report surveyed salary data from 131 business schools and found that, of the 111 schools that reported graduates receiving signing bonuses, the average signing bonus for 2021 MBA graduates was $12,172 [3]. Many MBA graduates enter their program with a few years of work experience, so assessing average salary increase can be a useful gauge if you’re unfamiliar with typical industry salaries. Keep in mind that these are averages and there are graduates from each of these programs who make significantly less money—often those in lower-paying industries or locations.

CPA vs. Accounting Education and Careers

Often college students find it difficult to choose between a CPA license or an MBA degree. On one hand, CPA provides global recognition in the field of accountancy, while an MBA degree prepares a candidate for the overall business world. Of all the industries they analyzed, nonprofit ($90,381) and government ($87,675) tended to be lower paying. Even still, these lower-paying industries average higher than the US national average annual salary across all industries, about $58,260, according to the US Bureau of Labor Statistics (BLS) [5].

CPA: The Cornerstone for Accountants

Usually, senior CPAs in management positions will earn over $100,000 on a regular basis. Management positions vary by specialization and previous work experience, so MBA graduates should keep that in mind. A CPA can still be an asset for a wide variety of companies that require an accountant or financial analysis. As a CPA, you also have the option to work as a consultant, serving the needs of several employers as issues arise.

Having your CPA sets you up for a career in finance and accounting and should allow you to grow in your organization. Potential careers could include Chief Financial Officer (CFO), auditor, tax advisor or forensic accountant. With a CPA, one way to increase your return on investment is to either apply for jobs with companies that offer substantial bonuses for CPAs, or to focus on ways to progress from more common CPA roles to the C-suite. However, even as a CPA, to attain the requisite skills to be a C-level executive, you may have to do some MBA coursework along the way.

So, the answer to the question would vary from person to person based on their career goals. Economic factors can also impact salaries, and MBA degree starting salaries are in a slight recovery period as the business world continues to navigate the global pandemic. Typically, MBA salaries increase every year, however, there was a dip in 2020 as the pandemic ramped up and the class of 2020 entered the job market. Despite a $10,000 salary drop in 2020, GMAC predicted salaries would return to 2019 levels in 2021 [1].

The company they work for and their geographic location also impact their earning potential. The MBA, however, is an academic credential, not a job title It’s a type of master’s degree program with an emphasis on the principles of business administration. MBA degrees like the program offered by Keller can be customized with specializations in a number of different areas, including accounting. Also, because an MBA covers so many core business principles, you are better able to run your own company after getting your degree. You are equipped to handle everything from budgeting and obtaining seed money for start-ups to marketing and product or service roll-out.