Masters in Accounting Salary: A Guide to Your Financial Journey

When pursuing a Master’s in Accounting, one of the most important factors to consider is the potential salary. Not only can a higher salary make the investment in education more worthwhile, but it can also provide financial security and stability for the future. 

In this guide, we’ll explore the factors that can impact a Master’s in Accounting salary and provide the information you need to make informed decisions about your financial journey.

How Much Can You Make With a Master's in Accounting?

A Master's degree in Accounting can lead to increased job opportunities and higher salaries than those with a bachelor's degree. It is a worthwhile investment for those seeking a fulfilling and lucrative career in accounting.

The average annual pay for an individual holding a Masters degree in Accounting in the United States is $42,275. However, the salary can vary widely depending on the job. Below are some of the highest-earning positions you can get with a Master's in Accounting and their average annual salaries.

Corporate controller

A corporate financial controller is a key executive responsible for managing and overseeing an organization's financial operations. This role involves developing and implementing financial plans, forecasting financial performance, and monitoring budgetary performance to ensure the organization remains financially stable and profitable. The average annual pay for a corporate controller is $147,362.

Accounting manager

An accounting manager is responsible for managing and overseeing the accounting department, which involves supervising accountants, examining financial statements, and creating reports for higher-ups. Additionally, they establish and implement accounting guidelines and procedures. The yearly salary for an accounting manager is around $94,153.

Tax manager

Tax managers manage their clients’ tax planning, preparation, and filing. They establish and maintain relationships with individuals and businesses to offer tax-related services. Additionally, they may analyze financial documents and budgets to provide guidance on tax matters. Tax managers make an average of $128,970 annually.

Auditor

Auditing professionals play a vital role in the business world. They are accountable for examining the financial records of companies and ensuring that they adhere to various financial regulations. Their primary objective is to accurately represent a company’s financial position, which is critical for investors, lenders, and other stakeholders to make decisions. An auditor earns an average yearly salary of $68,215.

Financial controller

The role of a financial controller includes tasks such as financial planning, analysis, forecasting, budgeting, and internal control, as well as reporting to management and the board of directors and ensuring compliance with government regulations. Financial controllers make around $111,385 per year.

Forensic accountant

Forensic accountants investigate financial fraud, including various fraudulent activities such as health care, securities, commodities fraud, cybercrime, organized crime, and public corruption. Additionally, their expertise is applied to counterintelligence, counterterrorism, and violent crime investigations. On average, a forensic accountant can earn an annual salary of $93,527.

Financial analyst

A financial analyst is responsible for predicting future income and expenses to aid in deciding on the budget for upcoming initiatives. They investigate and provide reports on financial data and also keep track of financial trends in the market. On average, a financial analyst makes around $83,514 per year.

Chief financial officer (CFO)

A CFO is a high-ranking official who oversees a company’s financial activities, such as monitoring cash flow, creating financial strategies, assessing the company’s financial status, and suggesting solutions for any financial shortcomings. They earn an average salary of $160,681 annually.

Comparing Master's With Bachelor's Degree Earnings

A lot of people opt for a master’s degree in Accounting as it fulfills the requirement of having 150 semester hours to be eligible for the CPA exam. A bachelor’s degree only requires 120 credit hours, which creates a 30-hour gap. 

By obtaining a master’s degree, you can earn an additional credential that enhances your earning potential. Even if someone never gets a CPA, having a master’s degree increases their salary as an accountant or auditor compared to just having a bachelor’s degree. 

Generally, a master’s degree can give you a significant advantage over a bachelor’s degree. According to the U.S. Bureau of Labor Statistics, people with a master’s degree earn a median weekly salary of $1,661, while those with a bachelor’s degree earn a median weekly wage of $1,432. This means that people with a master’s degree earn around $229 more per week than those with a bachelor’s degree. That adds up to over $11,900 in additional earnings for a year.

Factors Influencing Salary

When it comes to accounting salaries, there are a multitude of factors that can influence your earning potential. From industry and location to your level of experience and education, it's important to consider all the variables that come into play. 

So, if you're curious about the factors influencing your accounting salary, keep reading as we dive into the details.

Education level

While a bachelor’s degree in accounting or a related field is required to become an accountant, obtaining a master’s degree in accounting or becoming a licensed Certified Public Accountant (CPA) may improve your earnings and job prospects. 

Employers often place a premium on advanced degrees and certifications, as these demonstrate greater expertise and knowledge in the field. Therefore, it's important to consider pursuing a master's in accounting and certifications to maximize your earning potential in the accounting industry.

Certification

Many accounting professionals pursue certification to enhance their skills and knowledge and demonstrate their expertise to employers and clients, as this can significantly increase earning potential and job opportunities.

The most popular certifications for accounting professionals include:

• Certified Public Accountant (CPA)
• Certified Management Accountant (CMA)
• Certified Internal Auditor (CIA)

Each certification provides valuable knowledge and skills, leading to greater career advancement and earning potential in the accounting and finance industry. Pursuing a CPA is particularly lucrative, with a median salary of $116,915 per year.

Industry 

Certain industries, such as Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers, offer significantly higher salaries than others. This is due to the fact that these industries demand specialized skills and knowledge that are in high demand and short supply.

Furthermore, these industries may have larger budgets and more resources available to pay competitive salaries to their employees.

Location 

The location of the job can play a crucial role in determining the salary offered.  For example, states like Washington and New York offer higher salaries for accountants compared to other states in the USA. According to data, the average salary of an accountant in Washington is around $73,777, while in New York, it is around $70,725. These states have a higher cost of living than others, which may explain the higher salaries offered.

Years of experience 

Experience is an important factor that determines an accountant's salary. Generally, accountants with more years of experience tend to earn higher salaries. In fact, the top earners in the field can make up to $53,000 on average. This is because, over time, accountants develop a deep understanding of the industry and build a network of valuable contacts, which makes them more valuable to their employers. 

In addition, experienced accountants are often able to take on more complex and challenging projects, which can lead to higher pay. 

Company size 

Another factor playing a significant role in determining the salary levels offered to employees is the company size. Larger companies, such as Frazier & Deeter, often have more resources and financial stability, which allows them to offer more competitive salaries. 

Additionally, larger companies may have more career advancement opportunities, which can contribute to higher salaries.

Benefits of Earning a Master's in Accounting

A Master's in Accounting can be a smart investment in your career and future. This degree comes with numerous benefits. Some of them include:

• Professional development - Having a master’s degree can lead to more career opportunities and give you a competitive edge in the job market.
• Career advancement - With a master’s degree, you’ll be more qualified for high-level accounting positions, such as a financial manager or chief financial officer.
• Increased job security - A master’s degree program can provide you with valuable skills in critical thinking, problem-solving, and communication, which are essential in any accounting role. 
• Increased earning potential - A Master’s in Accounting shows that an individual has advanced knowledge and expertise in the field, which can make them more competitive in the job market. 

The Bottom Line

If you're considering a career in accounting, pursuing a master's degree in the field can be a smart decision. Not only does it provide advanced knowledge and skills to excel in this competitive industry, but it also offers vast career opportunities.

Our Lady of the Lake University offers a Master of Science in Accounting program that can help you achieve your career goals. So don't hesitate - take the first step towards your future in accounting by learning more about our Master in Accounting program today!

Frequently Asked Questions (FAQs)

How much do accountants make with a master's degree?

The average annual pay for an individual holding a Masters degree in Accounting in the United States is $42,275. This competitive salary is based on various factors such as location, company size, industry, and years of experience. 

What can you do with a Master's in Accounting?

Obtaining a master's degree in accounting leads to opportunities for career advancement, particularly in management roles. If increasing your salary is your ultimate goal, pursuing positions such as Corporate Controller, Tax Manager, or Financial Controller can be beneficial.

Is a Master's in Accounting difficult?

A Master's in Accounting can be difficult, especially if you don't have a strong foundation in accounting and finance. However, with the right mindset and work ethic, a Master's degree in Accounting is definitely achievable, and it can open up various career opportunities in the field of finance and accounting.