December 5, 2007

CPA And Their Pay Package

Certified Public Accountant (CPA) is the legal title given to qualified accountants who pass the Uniform Certified Public Accountant Examination in the United States. Besides they should also require meeting state education and get certification as a CPA. In many American states, CPAs with license can only provide their opinions and suggestions professionally on several monetary statements. A number of states have prohibited the use of designations Certified Public Accountant or Public Accountant by a person who does not have a certification for the CPA title. Consequently, in a number of circumstances, an out-of-state CPA is not allowed to use their CPA designation till he obtains a license or certificate from that state. Corporations in finance functions like Chief Financial Officer (CFO) or finance manager generally employ CPAs. Besides, CPAs are also employed as CEOs, provided they have authentic knowledge and experience. It hardly matters whether CPAs offer services directly to the public or indirectly when employed by corporations or association, they can easily operate in any possible area of finance. Some of the areas of work of a certified CPA are as follows:Financial accountingPlanning financeVenture capitalCorporate GovernanceFinancial analysisInformation technology, basically as applied to auditing and accountingAudit, assurance and information integrityManagement consulting and performance managementCorporate Governance Preparation and planning taxCPAs earn a lot in accounting professions. They get handsome salaries even at the entry level, particularly for those who have a CPA certification. Surveys and reports suggest varying figures for CPAs pay package. The salary of a CPA depends upon several factors. One of the main factors that affect the salary of a CPA is the state where they practice. Besides, their position in the organization, years of work experience and the size of the organization also determine their pay package. Some of the states like California and New York offer high pay package as compared to companies belonging to other states. Higher the size of the organizations and designation held by CPAs, higher the pay package. Generally, CPAs having one to three years of work experience get salaries ranging from $35,000 to $47,000 in small firms and $42,750 to $60,000 in large firms. In addition to these, individuals having a masters degree along with a CPA certification were found to earn around 10% more than individuals as compared to people who do not have the essential certifications.If you tend to stay in a firm for a long period then you are likely to get a salary around $175,000. This package increases with the increase in the experience of an individual and the size of the organization. CPAs working as directors with big companies commands salaries ranging from $85,000 to $130,000 and those working with medium size companies CPAs can expect salaries ranging from $76,750 to $111,000. The salaries of CPAs working with smaller firms come in the range of $71,500 to $90,250. In business and industry, companies that earn sales of more than $500 million per year offer CPAs a handsome salary ranging from $244,500 to $347,250. Besides basic salary, CPAs at a very senior levels, gets good bonuses and incentives.
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