Why do accountants make so little

Burnout in public accounting is so common that recruiters even refer to it in employment ads. For example, "Are you at the point of your public career where you are tired of the travel, lack of continuity of a team and don't see how another busy season is going to add new skills or depth to your career?

The most obvious move is to a private company. Don't openly ask about work hours during the interview process. Instead, ask your recruiter for the inside scoop on how many hours a company's accountants work during a regular week and at close, he suggests.

If you're in a more upper-level position or the company is going through an acquisition or merger, those hours will increase, she says. When you leave public accounting for a private corporation, you'll likely leave behind more than just a gazillion frequent-flier miles. Working for many different clients may put you on the road, but it also lets you experience new situations where you learn new things.

Since the scope is so broad, many choose to specialize on a work type such as tax accounting, forensic investigation, a client type wealthy private individuals, nonprofits or an industry type oil and gas, construction. Newcomers have a dizzying array of options both when they enter the field and as their career progresses. Many regard an entry-level job in public accounting, working towards the CPA credential, to be a solid resume-builder that bestows instant credibility. Entry-level accountants earn a reasonable income, but like most professionals, their earning power rises with time and experience.

A typical projection for a CPA salary looks like this:. Accountancy is a stable and growing field that's projected to grow by 10 percent from to This above-average growth rate may lead to good prospects for entry-level positions. Their skills aren't developed as they want them to be, and making rich companies richer doesn't provide the fulfilment they're looking for.

For those newly-qualified accountants who pick the industry path, their journey comes with some particular obstacles of its own. The standard path for an accountant who chooses industry is to start as an assistant, then work through various levels of financial accountant, until they reach the level of Financial Controller.

A Financial Controller will oversee the everyday operations of a company's finance department. To be a success in the role of Financial Controller, you need to be extremely detail-oriented, with expertise in management. It is an extremely strategic role, where you help set the vision for the company as much as you help the company achieve it. You'll see that the roles of Financial Controller and CFO require totally different skill sets, polar opposites from each other.

It's no surprise that accountants find it challenging when they progress to CFO, as they are completely pivoting. Unfortunately, it's the path they chose and there is not much they can do about it. The traditional accountancy career path is inherently flawed. Yet, it's not the only reason that today's generation of accountants are miserable in their roles. What were previously thought of as incentives to becoming an accountant, have diminished until they are not incentives at all.

In large accountancy firms, the traditional pay structure means that individuals earn a comparatively depressed salary until they reach Partner level. Then, they become some of the best-paid people in society.

However, this process can take many years. The average time it takes for an accountant to become a Partner is around fifteen years. There is no ownership in a firm below partnership. Fifteen years is a long time to put up with comparatively low pay, hard work and long hours. Today's generation, who on the whole prioritise work-life balance over money, may be reluctant to make that commitment.

While much of today's generation of accountants are unhappy in their work, not making the best of their talents and finding themselves under-prepared for progression, the companies they work with are suffering too. Whether they are in practice or industry, accountants who are unhappy in their roles do not do their best work. If they are bored, angry or fatigued, their work will not be of a high standard.

Startups are at even more of a disadvantage, at a time when they need financial expertise the most. According to data from the BLS, these are the highest-paying industries and locations:. Accountants earn the highest median annual wage in the following four industries and sub-sectors:.

The states that pay the highest salaries for accountants are mostly concentrated on the East Coast:. The top-paying metropolitan areas for accountants are as follows:. The top-paying rural areas for accountants are as follows:. Accountants are in high demand, as reflected by their high salaries. For accountants who want to make the most money, knowing the top-paying industries or sub-sectors and locations can help them plan their career paths accordingly.

Accounting jobs pay a median annual wage above the national median average for occupations. The job is a necessity in most fields and, therefore, is almost always in demand. Entering the field is not difficult and usually only requires a bachelor's degree. From there, accounting can be a lucrative career, with salaries for jobs higher in specific industries and locations.

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