so many factors to consider. if you have a JD and Tax LLM and get a job with Fortune 50 somewhere like San Francisco you might very well be starting at 100K. You need to be more specific as to location, background and field (tax, audit, etc.). In my experience 3-4 years is enough for a top performer in a public accounting firm.
also, genuinely curious – why are so many people focused on a six figure salary specifically? why not 75K or 150K? what do you expect to change in your life once you reach that number?
I don't think there is an average really because most people in accounting never hit six figures. I'm sure some do it before 25, but I wouldn't count on it.
Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager
If you want to know about Public salaries, there are plenty of websites with forums where people anonymously detail their promotion/raises in amounts and location by title. You can estimate their ages by the typical amount of years it takes to get to that position. Just do a little bit of digging on Google.
As for private, there's no way to answer this. There are WAY too many different routes you can take outside of public accounting.
You won't find a perfect answer in this thread. Too many variables in play, including location, industry, education, work ethic, etc. Nobody is just going to hand you $100k when you get a CPA if you can't perform.
F - 91 (6/5/2016)
A - 7/30/2016
R - 10/8/2016
B - 12/10/2016
I'm guessing private. I've been in industry my entire accounting life and most of the controller/director of finance positions I've encountered pay 100K+, and at least every boss I've had made that much. They weren't that old either early/mid 30s to late 40s. Typically, a few years of public and a CPA got them there. I don't know much about public accounting, so I couldn't help you there.
My roommate works for “BIGLAW” (like B4 for lawyers) and we've all heard about the competition for the top law schools which is the only ticket to BIGLAW which will lead to a nice in-house F500 job. From what I hear, the lawyers from low ranking schools scrape the bottom of the barrel for simple agreement review work. BA Accounting is one of the most bang for a buck type of undergraduate degrees for sure. I think public all the way if your goal is to hit that 6 figure mark as quick as possible, especially small tax firms because if you are a rockstar and carry a big load, they will throw some money at you to keep you.
@Son Isn't it obvious why 100k? it's the next digit: when a man broke the “10 second barrier” for the first time, that was a moment in human history. Started from earning a 4 digit income and hitting that 6 digit mark for the first time – it's a milestone in one's career.
‘You sleep with a win, you will wake up with a loss.”
In the DC market, public accounting staff start out around $60-$70k. Within 3-4 years at the senior and/or manager level, $90-$100k is possible even the non-superstars. There are also bonuses that many firms pay out which can put someone at over $100k.
For reference, a 800 sq ft apartment in or around DC, in a decent area and close to the metro, costs around $2000-$2500 per month.
To the OP – I assume you are either in college or just starting out your career. If I were you, I'd be focusing on other things besides money. 100K can mean vastly different qualities of life depending on where you live. Forget salary for a bit – what do you want out of your career? What kind of work do you like doing? What type of environment do you like working in? You're going to be spending 40-60 (or more) hours a week doing this – it better be something that doesn't make you miserable (and hopefully you like).
@Lost1, jdn9201 nailed that I had in mind asking the question. I get the appeal of the number as such, but what that salary translates to in real life? Do people think they will be happier or have a better life when they reach that magic number?
Don't get me wrong, I agree it's great to have that salary and be able to afford a decent living (in most places) and help your family, do some charity work etc. But I always wondered why people place so much importance on a six figure salary, since I think you can be very happy with 75K as well.
I actually know of someone who hit 7 figures at 30….Working in M&A for one of the Big 4. I know people will say “Well that’s not the norm, blah, blah, blah…” But, it is possible.
REG Aug 20/15: 88
AUD: Feb 29/16: 80
FAR: Jun 10/16: 80
BEC?
Becker self-study, Becker Final Review & NINJA MCQS
Other thing to consider is hours. If you make 100k but work on average 65 hours per week, that's about $29.58/hr. If you work strictly 40 hours per week, the same hourly rate is 62k/year.
Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager
.