Accounting is one of the most stable and in-demand professional careers in the United States, with consistent employment driven by the universal need for financial recordkeeping, tax compliance, and business advisory services.
The U.S. Bureau of Labor Statistics reports a median accountant salary of approximately $79,880 annually, with projected job growth of about 4% over the next decade — adding roughly 136,400 job openings per year from growth and replacement needs.
Becoming a professional accountant requires at minimum a bachelor's degree in accounting or a closely related field.
Advancing to a Certified Public Accountant (CPA) — the profession's most recognized credential — requires 150 college credit hours, passing a four-part CPA examination, and accumulating qualifying work experience.
The path demands commitment, but the credential opens doors to public accounting firms, corporate finance departments, government agencies, and independent practice.
This guide covers the educational requirements, CPA exam process, salary expectations, and career path options for aspiring accountants.
What Does an Accountant Do?
Accountants are responsible for preparing, analyzing, and verifying financial records for individuals, businesses, and organizations.
To understand the full scope of what an accountant does day-to-day, it helps to know that core duties typically include preparing financial statements, ensuring compliance with tax laws and regulations, reconciling accounts, managing payroll processes, conducting internal audits, and providing financial analysis to support business decisions.[1]
Accountants work across a wide range of settings: public accounting firms (where they may serve multiple clients in audit, tax, or advisory capacities), private corporations (in-house finance and accounting departments), government agencies, nonprofits, and as self-employed practitioners.
The specific duties vary significantly by employer and specialization.
Types of Accountants
The field encompasses several distinct specializations.
Public accountants typically work for CPA firms, serving external clients in audit, tax preparation, and consulting.
Management accountants (also called cost accountants or corporate accountants) work within organizations, managing internal financial reporting and analysis.
Government accountants serve federal, state, and local agencies. Forensic accountants investigate financial fraud and litigation-related matters. Tax specialists focus on federal, state, and local tax compliance and planning.
Each path has different day-to-day responsibilities and compensation ranges. For comparison, what an auditor does overlaps significantly with public accounting, and many accountants move between these roles throughout their careers.
Education Requirements
Entry into the accounting profession typically requires a bachelor's degree in accounting, finance, business administration, or a closely related field.
Most undergraduate accounting programs cover financial accounting, managerial accounting, auditing, taxation, business law, and cost accounting.
Core programs typically require 120 credit hours for the bachelor's degree.[1]
For those pursuing the CPA license — the profession's gold standard — a total of 150 credit hours of college education is required across all states, per standards set by the American Institute of Certified Public Accountants (AICPA) and adopted by state boards.
Since a standard bachelor's degree typically provides only 120 credit hours, most CPA candidates complete an additional 30 hours through a master's degree program (commonly a Master of Accountancy or MBA with accounting concentration), a fifth-year post-bachelor program, or additional undergraduate coursework.
A full breakdown of how to become a CPA — including state-specific requirements — is available in our dedicated guide.[2]
Master's Degree vs. Additional Undergraduate Hours
Candidates who need additional credit hours to reach the 150-hour CPA requirement have several options.
A Master of Accountancy (MAcc) or Master of Science in Accounting is the most common route and may provide specialized tax or audit knowledge that enhances early career positioning.
Some universities offer combined five-year bachelor's/master's programs that deliver 150 hours efficiently.
For those who prefer not to pursue a graduate degree, completing additional undergraduate coursework at a lower cost may fulfill the requirement, depending on state board rules.
Licensing and Certification
The CPA license is issued by individual state boards of accountancy and is widely regarded as the most valuable credential in the profession.
To become licensed, candidates must typically satisfy the 150-hour educational requirement, pass all four sections of the Uniform CPA Examination (administered by the AICPA and NASBA), and complete a required period of qualifying work experience (typically one to two years under a licensed CPA's supervision, depending on the state).[2]
The four sections of the CPA exam are Auditing and Attestation (AUD), Business Analysis and Reporting (BAR), Financial Accounting and Reporting (FAR, now restructured), and Tax Compliance and Planning (TCP) under the Evolution 2024 exam format.
Candidates may sit for sections in any order and have an 18-month window to pass all sections once the first is passed.
Pass rates for individual sections typically range from 45–55%, reflecting the exam's rigor.
Other Accounting Certifications
Beyond the CPA, other credentials serve specific niches.
The Certified Management Accountant (CMA) designation, offered by the Institute of Management Accountants, is valued in corporate accounting roles.
The Enrolled Agent (EA) credential, administered by the IRS, authorizes holders to represent taxpayers before the IRS in audits, collections, and appeals — providing a path for those focused on tax practice who may not hold a CPA. The Certified Internal Auditor (CIA) credential is recognized for internal audit professionals.
The role of a bookkeeper represents an entry point below formal accountant status, while a CPA's responsibilities sit at the top of the credential hierarchy.[3]
Salary and Career Outlook
According to the BLS Occupational Outlook Handbook, the median annual wage for accountants and auditors was approximately $79,880 as of the most recently published data, with the top 10% earning more than $137,280 and the lowest 10% earning approximately $47,970.[1] CPAs typically earn premium salaries over non-licensed accountants, with partners at major accounting firms earning well into the six-figure range.
Geographic location significantly affects earnings — accountants working in markets with a high cost of living in New York or cost of living in California typically earn well above the national median.
Job growth for accountants and auditors is projected at approximately 4% over the 2022–2032 decade, generating about 136,400 openings per year across growth and replacement demand.
Demand is driven by regulatory complexity, international business activity, and the increasing need for financial analytics and advisory services.
The profession has proven relatively resilient to economic cycles.
Earnings at Different Career Stages
Entry-level accountants with a bachelor's degree and no CPA typically start in the $48,000–$58,000 range. Those with a CPA license and two to three years' experience may earn $65,000–$85,000. Senior accountants and accounting managers at mid-career generally earn $80,000–$110,000+.
CFOs and controllers in major organizations — positions typically requiring extensive CPA-level experience — may earn $150,000–$300,000+ depending on company size and sector.
Big Four accounting firm partners and principals represent some of the highest compensation in the profession.
As earnings grow, knowing how much to contribute to your 401(k) and making use of a Roth IRA become increasingly important financial planning considerations.
Steps to Become an Accountant
The typical path to becoming a professional accountant follows these stages:
:
- Step 1: Earn a Bachelor's Degree in Accounting. Complete a four-year accredited undergraduate program in accounting or business with an accounting concentration. Focus on building strong skills in financial reporting, taxation, and business law.
- Step 2: Meet the 150-Hour Requirement. If pursuing a CPA license, complete the additional credit hours needed beyond the bachelor's degree through a graduate program or additional coursework.
- Step 3: Gain Work Experience. Entry-level positions at public accounting firms (in audit or tax), corporate finance departments, or government agencies build the practical experience needed for career advancement and CPA licensure.
- Step 4: Pass the CPA Exam. Register with your state board of accountancy, select your exam sections, and work through all four parts within the 18-month window. Most candidates use a structured CPA review course (Becker, Roger, Wiley).
- Step 5: Apply for CPA License. Submit your state board application once education, exam, and experience requirements are met. Maintain the license through continuing professional education (CPE) as required by your state. Once licensed, developing salary negotiation skills can help you maximize your earning potential at each career stage.
Is an Accounting Career Right for You?
Accounting suits individuals who are detail-oriented, analytical, and comfortable working with numerical data and regulatory frameworks.
The profession rewards precision — errors in financial statements or tax filings can carry legal and financial consequences.
Strong communication skills are increasingly important, as modern accountants frequently present financial analysis to non-specialist stakeholders, advise business owners, or collaborate with attorneys.
The career offers excellent job stability, diverse employment settings, and clear credential pathways.
Those who prefer less structured environments may find the regulatory and compliance nature of accounting constraining, while those who value job security and consistent demand may find the profession highly satisfying.
The investment in a CPA license — in time, study, and exam fees — typically delivers meaningful long-term return through premium compensation and career advancement.
Related financial careers worth exploring include what a financial analyst does and how to become an actuary, both of which share foundational quantitative skills with accounting.
Frequently Asked Questions
How long does it take to become a CPA?
Becoming a licensed CPA typically takes six to seven years from starting college.
A four-year bachelor's degree plus one year of additional coursework (or a master's program) fulfills the 150-hour education requirement.
The CPA exam preparation and testing process typically takes an additional one to two years, overlapping with the one to two years of required work experience.
The total timeline depends on individual study pace, exam pass rate, and whether a graduate degree is pursued.
Do you need a CPA license to work as an accountant?
No. Many accountants work professionally without a CPA license, particularly in corporate accounting, bookkeeping, accounts payable/receivable, payroll, and staff accountant roles.
However, the CPA license is required for signing audit reports, representing clients before the IRS in most circumstances, and assuming certain public accounting roles.
A CPA license significantly expands career opportunities and typically commands meaningfully higher compensation than non-licensed positions.
For a detailed look at the distinction, see our guide on what a CPA does.
What is the CPA exam pass rate?
Pass rates for individual CPA exam sections typically range from approximately 45–55%, reflecting the exam's rigorous standards.
The overall rate of candidates who ultimately pass all four sections varies, but studies suggest roughly 50–60% of those who begin the CPA exam eventually complete it.
Most successful candidates use structured review courses, dedicate significant study time (300–400 hours per section is commonly recommended), and take the sections in a strategic order suited to their background.
What is the difference between an accountant and a bookkeeper?
Bookkeepers handle the day-to-day recording of financial transactions — entering data, reconciling bank statements, managing payroll records, and producing basic financial reports.
Understanding what a bookkeeper does clarifies that accountants work at a higher analytical level — interpreting financial data, preparing complex reports and tax filings, performing audits, and advising on financial strategy.
The two roles are complementary rather than interchangeable.
Bookkeepers typically do not require a degree or CPA license; accountants generally have at minimum a bachelor's degree, and CPAs hold a state license.
What industries hire the most accountants?
According to BLS employment data, the largest accounting employers include public accounting firms (the Big Four — Deloitte, PwC, EY, KPMG — plus thousands of smaller regional and local firms), finance and insurance companies, government agencies at federal, state, and local levels, healthcare organizations, and manufacturing companies.
Technology companies have also become large employers of accountants as financial complexity has grown with company scale.
Virtually every organization of meaningful size employs accounting professionals.
Sources & References
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook — Accountants and Auditors, 2024–25 Edition. — https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm
- American Institute of Certified Public Accountants (AICPA), CPA Exam Candidate Bulletin, 2025. — https://www.aicpa.org/resources/download/cpa-exam-candidate-bulletin
- IRS, Enrolled Agents — Representing Taxpayers Before the IRS. — https://www.irs.gov/tax-professionals/enrolled-agents
Last updated: April 27, 2026