Accountants basically form the backbone of each company. They make massive contributions in handling its finances completely adhering to the various regulations while providing the critical perspectives for precision in decision-making. In this context, if you are contemplating a profession in accounting, you must initially understand the overall picture of accountant salaries in India. Therefore, let's take a closer look at certain aspects that determine accountant salaries, ways one can become an accountant, the different sorts of accounting job opportunities and the perks of acquiring certifications such as the US CMA.
Understand Accountant Salary in India
What is Average Accountant Salary?
Accountant salaries in India fluctuate considerably as a result of variables relating to education, previous experience, location as well as and specific expertise. The overall average yearly salary for an accountant in India stands at about ₹3.3 LPA. Beginning-level positions pay between ₹2.3 LPA and ₹4 LPA, whereas accountants in higher positions receive substantially higher salaries.
Salary according to Experience
Entry Level Accountants: Freshers or those having less than 2 years of experience: ₹ 2.3 LPA to ₹ 4 LPA
Mid Level Accountants: Three to five years of experience: ₹ 5 LPA - ₹ 8 LPA
Senior Level Accountants: More than five years of experience and also those having special certifications can ask for ₹ 10 LPA to ₹ 20 LPA or more
Salary by Location
Location has been one of the significant factors determining the accountant salary. Major cities will pay more due to the cost of living and the concentration of businesses. The average salary figures of various locations have been as follows:
Bangalore - ₹3.4 LPA
Mumbai - ₹3.2 LPA
Delhi - ₹3.3 LPA
Hyderabad - ₹3.4 LPA
Pune - ₹4 LPA
Chennai - ₹3.3 LPA
In Tier-1 cities of India, the average salaries paid for accountants are substantially greater than those in Tier-2 or Tier-3 cities.
Factors Affecting Accountant Salary
There are quite a few factors, which determine the accountant salary.
Education and Qualifications: A higher level of education, such as a master's degree or a professional certification like CA or CMA, could drive up your likelihood of landing a better-paying position and generating a greater income.
Specialisation: Accountants earn higher salaries through specialization in professional fields that involve taxation, forensic accounting or managerial accounting.
Industry: The industry for which you work may dictate the salary that you receive. Accountants within finance and insurance, for instance, earn higher compensation compared to accountants working in retail or non-profit organizations.
Company Size: Larger organizations have the means and resources of shelling out substantially higher compensation when compared with smaller ones.
Degree of Experience: As indicated earlier, experience does matter a great deal to determine salary - an accountant who has worked for a longer time tends to have higher pay.
How to Become an Accountant
If you're planning on becoming an accountant, you'll probably are interested to know how. What follows is a step-by-step guide that should help you:
Step 1: Educational Requirements:
The Bachelor of Commerce is usually the first degree most accountants take up with a concentration in accounting or finance. Learning pathways may include, but are not limited to -
- High school education with commerce subjects or equivalent.
- Bachelor of Commerce B.Com with a focus in accounting.
- Pursuing higher education like M.Com or MBA for more advanced qualifications.
Step 2: Practising Skills
Internship experiences during your studies will be very useful for applying theoretical knowledge in practical life. Opt for those that offer this type of opportunity.
Step 3: Get Specialised Certification
Technically, certifications through CA and CMA and others are not very essential, but they will certainly enhance your employability and higher salary prospects.
Step 4: Get Accounting Jobs:
Once you have finished your education and acquired some experience through internships, start applying to entry-level accounting positions. Customise your resume to list the relevant skills and experiences.
Step 5: Continuous Learning
As new laws and technological advancements are introduced, accounting is always evolving. Remain updated on shifting industry trends, while also considering acquiring further credentials through certifications to better prepare for your future in the profession.
Exploring Accounting Jobs
Accounting presents an extensive spectrum of employment possibilities that match the skills and interests you have. Some typical roles in accounting are listed below.
Public Accountant: The person in question is one that works for a public accounting firm and extends solutions incorporating auditing, tax preparation and consultation.
Management Accountant: A management accountant oversees the internal processes of financial management for an organization.
Forensic Accountant: Deals with financial investigation of discrepancies and fraud.
Tax Accountant: This is the one specialising in tax planning and compliance for individuals or businesses.
Government Accountant: He works for any government agency which deals with public funds and ensures that all rules and regulations are met.
Each of these job roles has its own set of responsibilities and pay packages.
Salary by Job Role
Average salaries across various accounting job roles
Tax Accountant - ₹5.5 LPA
Forensic Accountant - ₹9.9 LPA
Certified Public Accountant - ₹6.8 LPA
Cost Accountant - ₹7.3 LPA
Management Accountant - ₹12.8 LPA
Specialisation in niche areas can lead to better job security and above-average pay.
Importance of Certifications
Certifications are among the major influences in enhancing the possibility of your growth as an accountant. One such notable certification is:
Certified Management Accountant (CMA)
The CMA certification deals with financial management skills that are relevant for management accountants. To achieve this certification:
- You must hold a bachelor's degree.
- Successfully pass two parts of the CMA exam.
- Should have two years of professional experience in management accounting or financial management.
CMAs also tend to command higher wages than the non-certified counterparts.
The US CMA Course: Your Ticket to Higher Salaries
If you want to add more credentials to your profile, then the US CMA course is the right destination for you. This globally accredited certification with US CMA course teaches you financial management skills that are crucial for any management accountant.
Advantages of the US CMA Course
International Recognition: CMA certification is recognized all over the world. You can therefore look for work both here in India and overseas.
Higher Salary: CMAs usually receive a higher paycheck in comparison to their non-certified peers.
Greater Prospect of Career Advancement: Most companies prefer the CMA for leadership positions because of their knowledge of financial management.
Network: The CMA community offers opportunities for attending networking events and hence connecting with more professionals in this industry.
Frequently Asked Questions About Accountant Salary
What is the average salary for an accountant newly hired?
The average starting pay for an accountant stands around ₹2.3 lakh to ₹4 lakh, based on geographical location and background of education.
How does experience impact the salary of accountants?
There's a direct relation, as entry-level accountants usually get paid lesser than the accountants having many years of experience or those who have acquired certifications like CPA or CMA.
Is there scope for growth in accounting?
Absolutely! Accountants can advance into management and with more experience and credentials, they can move to senior positions. They may also take up specialisations in forensic accounting or tax advisory services.
What determines accountant salary?
Geographic location, level of education (Bachelor's vs Master), certifications (certified vs non-certified), specialisations (tax, audit, financial statement preparation), and industry sector (corporate, private or public) are key determining factors.
Conclusion
An accounting career presents promising opportunities and competitive pay that reflects the important roles accountants play in business operations. Familiarity with the factors that most significantly affect an accountant's salary will help aspiring professionals make better education and career choices.
Whether you're entering, looking to further your education in preparation for specialising or to attain your US CMA certification, now is the perfect time to jump into this exciting field. With proper preparation, such as building experience in these areas via internships and ongoing education with courses like the US CMA program, you'll be better than good enough to be an accounting star!
So, if you're ready for this exciting journey into the world of numbers and finance, then it's your turn now. That being said, this is a comprehensive guide to take potential accountants along their career paths, but with an insight into what those paths might pay in return!
