A Certified Public Accountant (CPA) is a professional designation where the person assesses the past and present finance-related data and suggests the clients related to the efficient use of resources and methods to stabilize or improve the financial condition. All 50 American states allow CPA to get practiced. In most countries, it is equivalent to the title of Chartered Accountant. The CPA mainly focuses on financial auditing and assurance services. Here, let’s know about CPA Salary NYC.
Responsibilities Of A CPA
The key responsibilities of a CPA include the following:
- Establish budgets by collaborating with the CEOs, other executives, and ensure that the projects do not go beyond the budgets.
- Audit the financial accounts of the individuals and make related financial decisions.
- Maintain the financial records digitally and physically, and ensure that there are no inaccuracies.
- Support the company with external audits, track major financial issues, business transactions, and prepare accurate reports.
- Inform the company about its current financial position and methods to improve it, and supervise the financial professionals such as accountants.
- Calculate the tax returns and conduct forensic examinations and investigations to catch the frauds and other related crimes.
Prerequisites To Become A CPA
The following are the steps to become a CPA:
Education
A candidate needs at least a bachelor’s degree in a field such as accounting or finance. Then, he/she must pass a state licensure exam to specialize as a CPA. Before appearing for the exam, the candidate must practice under a current CPA for the number of years specified by the state.
Work Experience
Internships and on-the-job pieces of training play a vital role in providing work experience. Entry-level CPAs may require work experience between 6 to 24 months. Large-scale companies put more responsibilities on the CPAs. Thus, they must have work experience of a minimum of three years. Senior positions might require at least five years of experience.
Required Skills
- They must get ready to work independently and in a team.
- They must possess good communication and organization skills because they are responsible to declare the decisions to various individuals and groups about financial concerns.
- They must handle and use the common types of CPA accounting software as required for the organization or individuals.
- Possessing problem-solving skills and being ready to work under pressure following strict deadlines is a must.
- They must stay updated with the trends, policies, and technology related to their field.
Job Titles Related To CPA
The following are some of the job titles related to CPA:
- Accountant
The fundamental responsibility of an accountant is to prepare and assess financial records. They must ensure that the firm or the individual pays taxes on time. The accountants have a wide range of fields and areas for practicing.
Salary range: $48,000 to $151,000 per annum in New York City (NYC).
- Staff Accountant
Most Staff Accountants work under the supervision of a CPA, controller, or director. They maintain the financial records, reports, ledgers, prepare budgets, maintain the files, and store the bills.
Salary range: $49,000 to $114,000 per annum in the NYC.
- Chief Financial Officer (CFO)
The CFO is the Senior Executive of a firm that looks after financial matters such as preparing income statements, balance sheets, and related financial records. He/she acts as the head of accounting.
Salary range: $123,000 to $290,000 per annum in the NYC.
- Auditor
An Auditor is an individual or a firm that works for the company. The typical duties of an auditor include performing financial audits, tracking the accuracy of financial records, and ensuring that the company follows the tax-related laws.
Salary range: $54,000 to $241,000 per annum in the NYC.
- Accounting Manager
Accounting managers supervise the teams of accountants. They create the methods for analyzing financial data, ensure that the organization follows the finance-related laws, and provide related improvements. They might also get involved in the financial decisions and prepare budgets.
Salary range: $64,000 to $164,000 per annum in the NYC.
- Controller
The controllers have duties similar to that of the CFOs in many organizations. However, the controllers do the bookkeeping in the absence of the CFO but, he/she might not be able to understand the underlying problems in the financial records and provide related solutions.
Salary range: $92,000 to $177,000 per annum in the NYC.
- Financial Manager
The Financial Managers analyze the financial data of the companies and recommend the methods to maximize the profits to the seniors. They supervise the investment activities and create long-term financial goals.
Salary range: $76,000 to $250,000 per annum in the NYC.
- Director of Finance
The Director of Finance is the Chief Accountant of the company. CFO lies above him/her. He/she develops and takes care of the policies and procedures to ensure financial stability in the organization.
Salary range: $87,000 to $236,000 per annum in the NYC.
- Vice President of Finance
The Board of Directors defines the financial plan, and the Vice President of Finance implements it. He/she is responsible for looking into all the financial matters depending on the company size.
Salary range: $156,000 to $374,000 per annum in the NYC.
Factors Affecting The Salary Of A CPA
The following are the factors affecting the yearly salary of a CPA:
- Public Or Private Sector
It is applicable for the CPAs working either for the public or private sector. The CPAs that work for the public sector earn more than those working in the private sector. Also, certified accountants get paid more than non-certified accountants. Some industries where the CPAs can work are the local, regional, international firms, and the Big Four. Private firms are better for entry-level CPAs, while public firms are better for nourishing the career.
The salary for the CPAs in public firms ranges from $57,000 to $161,000 per annum. The salary for the CPAs in private firms ranges from $57,000 to $114,000 per annum according to the seniority level.
- Experience
The salary for the entry-level CPAs depends on the grades, university, types of internship, certifications, and training. Many states require the candidates to have work experience of at least two years as public accountants. The accountants can apply for the CPA certification after the first year of service. They must choose the career path between 4 to 6 years of their service, and they must get professional in their fields after six years.
The salary range for the CPAs is from $44,000 to $109,000 according to the experience level.
- Company Size
The larger companies, such as the Big 4 accounting firms, pay the CPAs more than the small-scale and mid-scale companies. The larger the size of the company, the more will be the payment. The CPAs will have more defined roles and benefits in large companies. Technology keeps on changing with time. But, most companies prefer the CPAs to handle their financial matters. So, the CPAs have more scope for promotions.
The salary of the CPAs ranges from $64,000 to $217,000 according to the company size.
- Location
The cost of living in bigger cities is more. The bigger the city, the more will be the payment for a CPA. Capital cities tend to pay more than the other cities. However, the CPAs must not force themselves into an environment they find hard to survive in.
The salary for the CPAs ranges from $62,000 to $82,000 according to the states and cities in America.
Advantages Of Being A CPA
Some companies offer all the benefits to entry-level candidates, while some offer the advantages according to the experience level and other company policies.
The following are some of the usual benefits for CPAs provided by the firms:
- Job Stability
Technology keeps on getting updated every day. Thus, the CPAs must also get updated with it and learn to handle the latest software applications required for their job. During the downfall of a company, the CPAs have lower chances of getting terminated because they have a specific certificate for their job.
- Job Satisfaction
They can work across a wide range of areas including the business forensic, IT departments, Government sectors, international companies, and more. Some of the designations do not require the CPA certification. Thus, they may perform the duties of an accountant as well. It fulfills the need of an individual to have life changes.
- More Salary
The CPA certificate is the key to more salary. The CPAs get paid more than the accountants or the bookkeepers. They might also choose an industry, a firm, or a sector to get paid more.
Challenges In Being a CPA
The accounting profession often faces drastic changes. The taxation, recruitment, and retaining procedures do change.
The following are some of the challenges faced by the CPAs:
- Remaining Cost-Effective
The CPA must ensure that new technologies get implemented in the organization, employees (including the CPAs themselves) get trained to handle them, the software applications are cost-effective, the projects get completed within the budgets, and more. Thus, they remain under continuous pressure of staying cost-effective.
- Staying Updated With Technology
Technology proves to be helpful for the CPAs, but it is regularly required for them to get adapted to the changing technology. They must know what software applications to use, how much they cost, and how they affect the company. They must also train their subordinate regarding those software applications.
- Meeting Client’s Expectations
Since they hold a respectful position, the customers expect a lot from them. Everyone is not from a commerce background. Thus, the CPAs are responsible for providing them with the required information that they can understand. The CPAs must maintain transparency and clearly state what the customers can expect.
- Increasing Competition
On the one hand, the companies increase the prices of their products if they face a financial crisis. On the other hand, the companies also have to decrease the product prices to attract customers under rigorous competition.
Work Areas For A CPA
The CPAs can work across a wide range of industries with different related job titles. They can find their dream jobs in the following types of industries:
- Manufacturing
- Real estate
- Law
- Environment
- Sports
- Information Technology
- Construction
- Restaurant
- Healthcare
- Commercial banking
- Media and entertainment, and more.
Various Positions For A CPA
A CPA may work at different positions or assume various responsibilities within a single job position as follows:
- Treasury
- Auditing
- Financial forensics, analysis, and advisory
- Internal Auditing
- Support for individual financial planning
- Tax accounting
- Corporate governance
- Fund management
- Business valuation
- Information Technology consulting and auditing
- Due diligence
Conclusion
The CPA title distinguishes an individual in terms of experience, job, education, and company standards. The CPA license is the only one. But, some individuals might go for additional certifications to represent their specialization. The salary of the CPAs indirectly depends on their skills. They generally report to the accounting firm managers or directly to the clients. Thus, they must possess sound knowledge of finance and continuously try to solve the financial matters allocated to them. As we know, New York City (NYC) is one of the most well-known cities in the case of banking. Banking creates a wide range of scopes for the CPAs to work in NYC.
Frequently Asked Questions
- What Is The Difference Between A CPA And An Accountant?
Answer:
All CPAs can work as accountants, but not all accountants can work as CPAs (in most organizations). An account typically requires a minimum of a bachelor’s degree or a master’s degree but a CPA has an additional license. Many organizations consider the CPA license more prestigious than only an accounting degree. Accountants mainly calculate the employee payments, tax returns and interpret other financial records but CPAs perform additional duties of reporting the financial data and providing related suggestions to more senior employees.
- What Are The CPA-Specific Software Applications?
Answer:
They need the CPA software applications to deal with hundreds of records every day and grow with the changing technology. Accounting software applications provide accounting facilities, time-based billing, templates for the financial reports, and prepare taxes for multiple companies.
Some CPA-specific software applications are FreshBooks, Xero, Quickbooks, Sage, and Microsoft Dynamics 365.
- What Is A Bookkeeper?
Answer:
Bookkeeping clerks record the costs, income, and other related transactions. A secondary school certificate, diploma, or a relevant certificate is enough for an individual to work as a bookkeeper.
