[Anonymous]

I have been doing research online, but I want to just check with people who actually work in the field.

First, assuming that I have no public accounting experience, how much can a senior accountant make, and then how much can an accounting manager make in salary?

Second, if I get my CPA but with NO public accounting experience, how much would a senior accountant and accounting manager make?

Are there limited options for people who don’t have any public accounting experience who want to move up in industry? I get a sense that it is very difficult to go from private to public, that’s why I am asking. And it seems like you can’t go very far without a public accounting background in the corporate world.

[Anonymous]

I'm a firm believer that salary potential is capped more by who you are than what qualifications you have. Qualifications may dictate average salary, but not max/potential. For example, most highschool dropouts have a very low salary; however, some are Walt Disney. So, keep in mind as you look at these figures that the best you can find is national averages. We can't really answer “how much can an accounting manager make”, just “how much does an accounting manager usually make”. And, the answer to that would depend on the size of the company and the number of duties in that position. I've seen Accounting Managers in larger companies with way more responsibility than Controllers like me in little companies, and I'm pretty sure their salaries are larger than mine as well. However, to try to share what I can…

In my opinion, having a CPA in private doesn't make you make any more money in a certain position (aka Senior Accountant); what a CPA does for you in private is open the door to a position that may make more. For example, a couple months ago I started a job as a Controller. I don't think that the fact I was a CPA made a big difference in what salary they offered me; however, I think it did make a big difference in determining whether I was ever even called in for an interview. So, I would presume that average salary of Senior Accountants at any given company is similar or the same regardless of CPA status, but I would guess that likelihood of a Senior Accountant being considered for an Accounting Manager role is greater for those with a CPA, so therefore the earning potential is greater for the Senior Accountant with CPA than the one without CPA, even if both their checks are the same size while they are Senior Accountants. Does that make sense?

How far you can go in the corporate world without a public accounting background varies, too. If you are wanting to be CFO or Controller of a large company that is audited by B4, then they may want to see B4 audit experience, but it's not 100% required most places and the further away you get from F500 type companies, the less you see it mandated. If you're looking for a Fortune 500-type career, then yes, B4 audit or large regional audit is going to be pretty helpful. However, if you are interested in working for the slightly smaller companies, then you can go far with less.

Last thought: Private to public is only hard if you want to be something other than entry-level in public. If you're willing to take a huge paycut and title cut, it's not usually too hard to move.

[Anonymous]

Thanks for the insight! You shed light on certain things.

I guess that is my real question: what can a senior accountant and accounting manager “usually” make, assuming no public accounting experience, I just want to see some rough estimates of what I can expect to make in a few years, and then determine if I should try to get into public.

I guess if I stay in private, then income potential is high if I work at larger private companies that don't usually need a public accounting background, is that right?

[mla1169]

Location very much matters too, as well as size of the company. If I was willing to commute into Boston (19 miles) I'd easily make $20k more than I do north of the city. But that would mean over 500 hours commuting time a year so it is a trade off I'm not willing to make. I've seen senior jobs in the $90k range in Boston (the job listings always say CPA required, but everything is negotiable with the right experience) and I've seen senior jobs near me closer to $70k. I've got no public experience but landed a great job as a finance manager, prob took me a little longer to find a job like this since I don't have public experience but persistence pays off.

You also have to keep in mind the work-life balance. Some senior jobs only pay 60-65 but are legit only 40 hours per week. Want a $90k job? Don't count on clocking out at 5pm even in private.

But as I said location matters, I'm giving salaries north of Boston. They likely wouldn't be the same in Smakover Arkansas.

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[Anonymous]

Can confirm, a senior accountant job in Smackover, AR would not pay well.

[Anonymous]

Thanks mla1169,

I was also wondering about that… if a job posting says “CPA preferred”, does that sometimes imply the job requires public accounting experience?

Many people make assumptions that a CPA means that you have public accounting experience.

[mla1169]

Here's what I've found about job postings-I did not have a bachelors degree until I was 38 years old. Every job I had from when I was 22-38 absolutely advertised as a degree required but that didn't keep me from getting the job. Sometimes an ad that says CPA required really does mean they want public experience. Other times it's a company that for all practical purposes copied an ad it found online but really only cares about experience. Bottom line is apply to all even if the ad claims big 4 experience is required. Sometimes it's not a deal breaker.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

A senior accountant or accounting mgr at the same company will have similar salaries as their peers at that company (regardless of any public experience or not). And there r plenty of mgrs and senior accountants out there without any public. Although, GENERALLY, the promotion timeline is accelerated if u start in public ( you'll make senior quicker).

[fuzyfro89]

(lilla) Got it right. “Qualifications may dictate average salary, but not max/potential.”

Generally, people with public experience will land better positions than comparable people who never had public experience (controlling for age, # yrs experience, etc)… but that's a huge *generally*.

I've seen/known some people who rose very quickly with all industry experience, and others who have stagnated. For example, I know a senior accountant at my current company who's probably going to retire as the same. I also know a internal audit manager who's probably barely 30, and will likely make audit director within the next 2-3 years (plus the 200k all in total compensation as well). Very very few people at her age with public exp will make as much. Some was luck, some skill and hard work, but that's not the *average* situation at all.

Find what you think is the best place for you to succeed. Some people won't succeed in a work environment in public, but will thrive in industry. If you have no preferences, then by all means go with public, but don't discount the opportunities around if they are a better fit for some other reason.

[Mamabear]

I agree with a lot of the other comments. There isn't a standard answer because there are too many variables. I have no public accounting experience and I am an accounting manager. I know Controllers in smaller companies with less responsibility than I have and I am sure there are senior accountants in much larger companies that may have equivalent responsibility. Apply for the jobs you think you can do regardless of whether they want public accounting experience or not. If they pick you to interview, sell yourself on all the other aspects of the job requirements. If they are adamant about the public accounting experience they will see on your resume that you don't have it and choose not to interview you.

CPA Exam - Finally DONE (November 2014)
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[Martin]

Senior Accountant in South Florida with more than 5 years private accounting experience and no CPA from 65K to 75K.

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

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[Author]

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