Study Finds Strong, Steady Growth in Accounting Starting Salaries

By Sarah Clark
Career Training Directory Columnist

While starting salaries in other fields have fluctuated over the last fifteen years, those in accounting have grown steadily. These findings, issued by the National Association of Colleges and Employers (NACE), support the conventional wisdom that accounting is one of the most financially secure professions.

Accounting jobs aren’t sexy. But what continues to draw people to the field is the security accounting jobs offer. After all, who’s going to fire their accountant when times get tough?

CPAs are critical to any business, even to nonprofits and government agencies. Everyone needs to keep track of their cash flow. It’s not a luxury service—accounting is critical to the successful operation of every business.

CPAs Earnings Increase

Maybe that’s why accountants’ salaries have grown so much over the last fifteen years. The NACE report found that accountants’ starting salaries rose by 8.9 percent in real dollars between 1990 and 2005. In 1990, accounting graduates earned starting salaries of $39,435 (in 2005 dollars) while in 2005 they earned $42,940.

The NACE compared those figures with starting salaries of MIS college grads. During the 2002 tech bust their starting salaries dropped by 10 percent, while starting salaries in the accounting field remained relatively stable. So it seems there’s a factual basis for the accounting job market’s legendary ability to sail through even the worst economic downturns.

Accounting Degrees

What kind of degree do you need to become an accountant? Accounting jobs typically require a bachelor’s degree in accounting. You may also want to consider becoming a CPA (certified public accountant), which requires a few additional college accounting courses and a passing grade on a two-day accounting test issued by the American Institute of Certified Public Accountants. The Bureau of Labor Statistics reports that CPA certification can give accountants an advantage in the job market.

So if job security is more important to you than having a thrilling job, consider a degree in accounting. And who knows, you might just discover a passion for numbers and business.

Sources

The Bureau of Labor Statistics
The National Association of Colleges and Employers

About the Author

Sarah Clark is a freelance writer who specializes in postsecondary education and career development.