Accounting Manager Salary Guide
Updated September 28, 2022
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As noted in this University of Scranton editorial, specialized accountants are well-positioned to benefit from rising labor market demand. This bodes well for accounting managers — especially for those skilled with tech-based team and process management tools.
Accounting professionals often earn salaries above the median wages in the general labor market. Those working at the management level may make even more.
This guide explores the various factors that impact accounting manager salary trends. Use it to inform your career planning and salary research.
How Much Do Accounting Managers Make?
Payscale data indicates that accounting managers earn more on average than accounting professionals in non-management roles. Payscale data from August 2022 for certified public accountants (CPAs) reports an average CPA salary of about $70,990 annually.
The 7.6% difference between these average salary levels adds up over time. Continued education leads in part to that increase; many accounting managers hold master's degrees in accounting, or professional degrees like an MBA.
Salary by Education
Many common accounting credentials require candidates to hold only a bachelor's degree. This is true of CPAs, certified management accountants (CMAs), and other specializations. However, many employers prefer people with master's degrees when filling openings at the management level.
To that end, a master's degree in accounting or a concentrated MBA in accounting may boost your chances of landing a management position. The following chart summarizes education's overall impact on an accountant's earning potential:
While the data indicates that advanced degrees have little impact on overall earnings, they may improve your access to management jobs. Note that these figures represent base salaries only. Professionals at the management level may qualify for additional forms of compensation, including profit-sharing and bonuses.
Consider the additional value professional accounting certifications offer. For example, Payscale reports average CMA salaries of $97,000 per year as of August 2022.
Salary by Experience
Higher levels of experience often translate into stronger job performance, especially in management roles. Management positions require both technical and team-oriented skills that often take time to develop.
The Payscale data indicates that accounting manager salaries tend to see big jumps between the early- and mid-career stages. This suggests that employers value a proven track record of strong performance. It also shows that businesses are willing to pay more to land experienced candidates.
Salary by Location
When asking "How much do accounting managers make?" people may not realize that the answer can vary widely depending on job location. Accounting professionals tend to earn more in places with higher living costs. However, those higher living costs can often offset salary gains.
Labor market dynamics are another key factor. If demand for accounting managers is high in a particular area or industry and there are few qualified candidates, salaries tend to rise. The opposite is true in job markets where many qualified people are competing for a limited amount of openings.
The U.S. Bureau of Labor Statistics (BLS) includes accounting managers in its general "accountants and auditors" category. The data presented below is generalized for all accountants and is not specific to accounting managers.
| State | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| District of Columbia | 9,200 | $110,240 |
| New York | 111,660 | $105,790 |
| New Jersey | 42,230 | $97,950 |
| California | 151,320 | $92,840 |
| Massachusetts | 38,140 | $92,310 |
Source: BLS
| Metropolitan Area | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| San Jose-Sunnyvale-Santa Clara, CA | 13,850 | $112,830 |
| New York-Newark-Jersey City, NY-NJ-PA | 117,800 | $109,330 |
| San Francisco-Oakland-Hayward, CA | 23,970 | $107,540 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 41,850 | $99,640 |
| Midland, TX | 1,090 | $95,380 |
Source: BLS
Where Should I Work as an Accounting Manager?
The BLS projects a steady near-term outlook for accounting professionals. On the whole, it predicts that nationwide demand for accountants and auditors will keep pace with growth trends for all professions.
Note that the data presented below is generalized for accountants and auditors. It is not specific to accounting managers. Actual demand for accounting managers may be higher or lower, depending on location and other factors.
For instance, the Projections Central data summarized below shows that certain states expect much stronger accounting job growth. Projections Central is a cooperative project of the BLS, the U.S. Department of Labor (DOL), and the DOL's Employment & Training Administration.
Focusing your long-term career planning on areas that expect to see higher-than-average job growth may boost your overall prospects. Potential benefits could include stronger access to a larger base of available jobs, higher salaries, or both.
Best Areas
Trends emerge when looking at current and projected job availability for accounting professionals. First, jobs tend to cluster in the largest numbers in states with:
- Large populations
- Higher rates of urbanization
- A strong corporate presence
This makes sense: Most accounting managers work for larger businesses with sizable in-house accounting teams. These businesses tend to locate themselves in larger urban centers with more commercial and investment activity.
Second, many of the locations that currently employ large numbers of accounting managers are expected to hold their leads during the 2020s. This suggests stable prospects for accounting professionals working in those cities and states.
At the same time, several U.S. destinations appear poised to emerge as up-and-coming hotspots for accounting job growth. These include some states with smaller populations, led by Utah. It may be worthwhile to keep this in mind as you plot your career course.
In terms of cities, the country's largest metro areas dominate ob availability. Notably, each of the top five cities also pays median salaries well above the national average of $76,360 cited by Payscale in August 2022.
| State | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| California | 151,320 | $92,840 |
| New York | 111,660 | $105,790 |
| Texas | 104,490 | $85,860 |
| Florida | 79,380 | $76,320 |
| Pennsylvania | 54,530 | $79,200 |
Source: BLS
| State | Percent Projected Change, 2020-2030 | Average Annual Openings |
|---|---|---|
| Greatest Projected Percentage Increase | ||
| Utah | 33.4% | 1,800 |
| Colorado | 22.8% | 4,580 |
| Florida | 22.7% | 9,560 |
| Arizona | 21.6% | 2,990 |
| Massachusetts | 21.6% | 4,690 |
| Most Projected Average Annual Openings | ||
| California | 12.9% | 16,960 |
| New York | 16.5% | 13,510 |
| Texas | 20.2% | 12,990 |
| Florida | 22.7% | 9,560 |
| Illinois | 10.7% | 5,470 |
Source: Projections Central
| Metropolitan Area | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| New York-Newark-Jersey City, NY-NJ-PA | 117,800 | $109,330 |
| Los Angeles-Long Beach-Anaheim, CA | 59,470 | $89,700 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 41,850 | $99,640 |
| Chicago-Naperville-Elgin, IL-IN-WI | 38,800 | $81,250 |
| Dallas-Fort Worth-Arlington, TX | 34,070 | $87,720 |
Source: BLS
Best Industries
Accounting managers are in demand across many industries. This section profiles industries that pay the highest average salaries. It also covers which industries employ the most accounting professionals.
When considering industries, look at dynamics that could impact your ability to land a job. Some industries pay accounting managers very well, but have fewer job openings. This often indicates high levels of competition for a relatively small number of available positions.
The BLS does not specifically track accounting manager salary data or job numbers. Instead, it groups the profession in with its broader category for "accountants and auditors." All BLS data cited in the tables below is generalized for all accountants and auditors.
| Industry | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| Pipeline Transportation of Crude Oil | 40 | $123,230 |
| Computer and Peripheral Equipment Manufacturing | 2,770 | $123,210 |
| Information Services (Other) | 4,770 | $112,900 |
| Securities, Commodities Contracts, Financial Investments, and Related Activities | 30,990 | $107,610 |
| Federal Executive Branch (OEWS Designation) | 22,260 | $107,170 |
Source: BLS
| Industry | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| Accounting, Bookkeeping, Tax Preparation, and Payroll Services | 326,570 | $86,650 |
| Enterprise Management | 104,760 | $84,820 |
| Local Government (OEWS Designation) | 45,290 | $73,860 |
| State Government (OEWS Designation) | 42,240 | $70,830 |
| Real Estate | 38,290 | $82,090 |
Source: BLS
Questions About Accounting Manager Salaries
Where is the best state to work as an accounting manager?
That depends on how you define "best." D.C., New York, and New Jersey have the best average annual accounting manager salaries as of May 2021. In terms of job numbers, California, New York, and Texas were the top three destinations.
What is the best industry to work in as an accounting manager?
The accounting services, business management, local and state government, and real estate industries rank as the top five employers of accountants as of May 2021. In terms of pay, the top industries are crude oil pipeline transportation, computer manufacturing, and information services.
Is accounting manager a good career?
Many accounting tasks are becoming automated. However, computer programs cannot manage accounting teams. From this perspective, accounting manager careers are insulated from the trends that may threaten some lower-level accounting roles.
Do accountants make more than managers?
Payscale data from August 2022 cited an average salary of about $52,810 per year for all accountants. At the time, Payscale reported that accounting managers were earning an average of around $76,360 per year.
What is the highest accounting salary?
Payscale tracks the salary data associated with specific degrees and certifications. One comparison looks at the money varying accounting degrees — a bachelor's or master's in accounting, an MBA in accounting, and CPA or CMA certifications — earn. CMAs topped the list with an average annual salary of $97,000.
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