Impact of Position & Skills on Entry Level Accounting Salary
The field of accounting is full of great career opportunities for those with an aptitude for numbers, problem-solving and interpreting data. One of the first stepping stones in an accounting career is an entry-level role. An entry-level accounting position may differ depending on the formality of the organization, the size of the company, and the industry. It could range from a basic accounting clerk to a junior level accountant, depending on the needs of the enterprise.
In terms of earning capacity, just as with any profession, the entry level accounting salary can vary quite a bit. The salary depends heavily on the location, business size, industry, and the individual’s level of education and experience. However, according to reports by the U.S. Bureau of Labor Statistics, the median salary was $71,550 for accountants and auditors as of May 2020. Keep mind this figure represents the median for all accounting positions, and not just entry-level salaries.
Factors Affecting the Entry Level Accounting Salary
While starting salaries for entry-level accounting jobs tend to be uniform, several factors can affect a candidate’s starting salary. The initial footprint in a professional environment can be incredibly influential for shaping the rest of the career. Here are some of the common aspects taken into consideration for determining the entry level accounting salary.
1. Education
One’s educational background plays a crucial role in determining their entry level accounting salary. A bachelor’s degree in accounting is often the minimum educational requirement, but those with a Master’s Degree in Accounting or an MBA might command a higher starting salary.
2. Certification
Employers often prefer to hire entry-level accountants who have certified public accountant (CPA) licenses or who are working toward this valuable certification. Other notable certifications include Certified Management Accountant (CMA), Certified Internal Auditor (CIA), and Certified Fraud Examiner (CFE). Each of these can potentially increase the entry level accounting salary.
3. Geographical Location
The geographical location of employment can significantly impact the entry level accounting salary. Cost of living and standard of living in different parts of the country directly affects the compensation offered by the employers.
Challenges in Accounting and Potential Solutions
Like most professions, accounting is not without its challenges. With the modern era intruding on traditional methods, the professional world has evolved rapidly. The current workforce is more digital than ever, and the recent pandemic has furthered this transformation.
One of the new challenges faced in the accounting realm is employee check in/check out solutions. Maintaining track of employees virtually was not something the field was accustomed to before now. But just like many industries, accounting has adapted. This evolution has brought about an increasing number of employee check in/check out solutions to keep track of one’s work hours and productivity levels.
Software solutions such as time tracking software, project management tools, and dedicated accounting software have become essential in the wake of remote working scenarios. They help maintain productivity levels and keep workflow organized while allowing for regular employee check-ins and check-outs. It could also have indirect implications on the entry level accounting salary, as better productivity could lead to increased salary prospects in new era accounting.
It’s critical to understand that an entry level accounting salary is just the beginning of your accounting journey. As you gain more experience, develop new skills such as those related to employee check in/check out solutions, and perhaps even earn additional certifications, your earning potential may increase significantly.
The exciting field of accounting is waiting for you — with a whole world of opportunities and an attractive entry-level salary to get you started on your successful career path.