Simple Salary structure Guide For CPA in India 

The highest level of expertise in accounting is required to become a Certified Public Accountant (CPA). The test is given by the American Institute of Certified Public Accountants (AICPA), the largest accounting organization in the world. If you’re looking toward a career in accounting and want to stand out, taking a CPA course is your best bet. CPAs are considered the best accountants in the world and work for a variety of companies.

List of Contents

Introduction to CPA

So you’ve made a choice to go for a career as a certified public accountant (CPA). You are qualified to take the CPA Examination if you have completed all of the undergraduate and graduate-level accounting, business law, and general studies courses that your state mandates, as well as if you have accumulated some work experience (as required in all but a few states). Let’s go over the details.

  • The Financial Accounting and Reporting (also known as FAR), Auditing and Attestation (AUD), Regulation (REG), and Business Environment and Concepts (BEC) sections make up the CPA exam (BEC).
  • Exam sections can be taken separately, and candidates have up to four hours to complete each one. Candidates need to pass all 4 sections in 18 months.
  • Three written communication tasks, 276 multiple-choice questions, and 28 task-based simulations are all included in the computer-based CPA exam.
  • The minimum passing score is 75, and the test is graded on a scale from 0 to 99.

A CPA can give accounting professionals more flexibility and mobility in their careers since it is a professional designation rather than a career path or job title. CPAs typically only have a single state license, but thanks to reciprocity laws, they are also able to get licenses in other states.

Because of their credentials, dependability, and industry knowledge, CPAs are in high demand across all sectors of the economy.

The following industries are frequently where CPAs work, according to the AICPA:

  • Non-profit
  • Education
  • Government
  • Business and industry
  • Public accounting

This is not an exhaustive list. A CPA designation can open opportunities in virtually every industry.

According to the AICPA, there are five popular areas of specialization open to those who earn the CPA designation:

  • Tax preparation and consulting
  • Consulting services
  • Litigation consulting
  • Financial planning
  • Auditing and review

Becoming a CPA requires planning, time, and effort. Being a CPA needs a dedication to ongoing education, even after receiving the designation. A CPA may be required to complete forty hours of continuing education each year, depending on state board needs.

Due to the difficulty of acing the CPA Exam and the requirement for ongoing education, many in the finance and accounting industry see the CPA license as one of the most precious CPA/accounting credentials a professional can obtain.

Steps to Become a CPA

The path to becoming a Certified Public Accountant (CPA) is different depending on where you live. On a fundamental level, the 4 E’s can be followed:

Education

All states ask for some level of accounting education before granting a CPA license. In most states, this typically requires 150 credit hours of college-level accounting coursework. Some accounting CPA candidates meet this requirement while still in their undergraduate studies. The educational requirement can be satisfied without a master’s degree, but some of the 150-hour programs do result in a graduate degree.

Exam

The most difficult requirement may be passing the CPA Exam for some people. It is made up of one level and four subjects.

Ethics

Some states may require the completion of ethics exams or ethics courses in order to obtain a CPA license.

Experience

In some states, candidates must fulfil specific experience requirements, such as having a year of work experience under the supervision of a CPA.

Eligibility for the CPA

  • To apply for the CPA certification program, a candidate must hold a bachelor’s degree or an equivalent qualification.
  • To obtain a CPA license, a candidate must complete 150 semester hours of CPA coursework.
  • Many states require applicants to have between 1 and 2 years of experience working for a CPA.
  • It is important to note that US citizens and candidates must meet different CPA eligibility requirements than people from other countries.
  • International candidates differ from US candidates in terms of the consent agreement, cost of international testing, and identification requirements.

25th percentile

This range includes applicants who have less experience than average, need to develop their skills, and may be employed in a field with little talent competition or in a smaller, less sophisticated company or department.

50th percentile

This category includes applicants with an average level of experience, the required abilities to perform the job, and roles that may be somewhat complex or in fields with a low level of talent competition.

75% percentile

This category contains applicants that have more experience than the majority of their peers, have stronger skill sets than most of their peers and may work in a challenging environment or in a competitive industry.

95th percentile

This group includes applicants whose roles may be extremely difficult or fall under a highly competitive industry, who have more experience than nearly all of their peers, who possess the highest level of knowledge and/or certification(s), and who have among the highest level of experience.

As with virtually all occupations, an accountant’s predicted compensation will be significantly influenced by the complexity of their job and their amount of expertise. The most significant component in establishing your accountant’s income is typically the amount of experience you have.

However, keep in mind that if an accountant is employed by a smaller, less complex company, he or she is unlikely to earn in the 95th percentile. In contrast, there are some bigger, more complicated firms that pay their younger CPAs more than smaller firms do.

The CPA is one of the top certificates that might push you toward the upper 95th percentile. As a result, even recently licensed CPAs frequently score in the 50th to 75th percentile.

It’s important to remember that CPA license holders predominate among accountants in management and directorship roles. The CPA or an equivalent credential is really among the minimal criteria for many senior positions. The compensation spectrum for accountants is generally quite broad. As an example, consider a tax accountant who works in financial services and is in

What Do CPAs Earn?

A CPA’s salary typically ranges from the high five figures to six figures, and senior CPAs in management can make even more. Therefore, you might want to think about earning a certified public account designation if you are a college graduate with a bachelor’s degree in finance or accounting, or if you are an entry-level accountant looking for a higher salary and more responsibility at work.

If you’re an accountant, you’ll discover that the CPA salary in India is higher and that your position will be enhanced by this designation. A CPA license opens the door to a variety of lucrative careers. Before pursuing a CPA license, it’s important to understand the potential rewards because doing so requires a sizable time and energy commitment, in addition to a dedication to ongoing education.

In the public and private sectors, as well as for the federal government, certified public accountants work in a variety of fields including forensic accounting, tax preparation, auditing, booking, and information technology. Being a CPA can eventually lead to employment as a chief financial officer or a highly compensated tax accountant with the right amount of experience.

Accountant Payscales

Without a CPA designation, there are many different types of accounting jobs and salaries available.

Payroll, Bookkeeping, and Tax Preparation Services

According to the BLS, the median annual salary for accountants providing bookkeeping, tax preparation, and payroll services in 2021 was INR 61,60,657. 

Financial Institutions and Insurance

Accounting firms that provide general services to insurance companies and businesses with a financial focus pay their accountants well. The median annual wage is slightly higher than those who work in tax preparation, at INR 6338891, according to the same BLS data as above.

Government Jobs 

The median annual salary for accounting positions in the government is a lucrative INR 6177441. By 2020, roughly 8% of all accountants and auditors were employed by the government.

Accountant/Junior Tax Associate

Many accounting graduates can work as junior tax associates or accountants right away. Tax-related professions can act as a springboard for more lucrative positions. A junior tax associate must be knowledgeable about federal, state, and local tax laws as well as how to prepare tax returns and other documents for businesses or individuals. The BLS reports that in 2021, the median yearly wage was INR 4538169.

The majority of accountant and auditor positions, including those mentioned above, call for at the very least a bachelor’s degree in finance or accounting from an accredited university. A master’s degree in business administration or accounting may also be necessary for some positions.

Payscales for CPAs

Their salaries will far exceed the average of most accounting graduates because most people pursue a CPA in order to assume more responsibility and management roles. The average base salary for CPAs in 2022, according to data from all of the job postings on the employment website Indeed, was INR 6339370.

The Accounting Institute for Success claims that top-tier CPAs can make up to INR 11988825 annually. Additionally, gaining the knowledge and training necessary to become a CPA can open doors to other career paths like those of a company comptroller or certified financial officer.

Beginning CPA

The average salary for entry-level CPAs is INR 3676573 according to the Accounting Institute for Success, depending on the size of the employer.

CPA at senior level

A CPA with more than four years of experience might earn INR 5275083 depending on their background.

A CPA as a Manager or Director

The U.S. Bureau of Labor Statistics estimates that top executives make between $60,300 and INR 16624504 annually. Executive management positions are another senior position open to CPAs with experience, and these positions can pay six figures.

The median pay for chief executives in 2021, as reported by the BLS, was INR 14348225.

Frequently Asked Questions

  • Are CPAs able to earn six figures?

Senior CPAs in management positions typically make over six figures each year. The majority of CPAs can anticipate making high five figures.

  • A CPA: Is It a Good Career?

Yes, if you enjoy accounting, taxes, and math. A competent certified public accountant can earn a high five-figure salary because they are typically in demand. Additionally, they could open their own business if they chose not to work for a big corporation. Work opportunities in this field are available in a variety of public and private sectors, including the government and information technology.

  • Experience and CPA salary in India: What It Means

Your experience is reflected in the calibre of your school, your grades, the relative prestige of the internships you’ve completed, and any pertinent extracurricular activities if you’re applying for your first accounting job.

The experience begins to include actual time spent working in the industry, accomplishments that go along with the role(s) you’ve performed, and so on once you land that first job.

Early in their careers, new accountants frequently go through the following stages:

  • 0–1 year (Accountant at Entry Level) – Gaining your first year of experience is a significant achievement. You will learn a lot during this hectic period. You’ll learn a lot, and you might begin to have a sense of the path you want to take your career in.
  • 1-3 years (Junior accountant)- You can anticipate gaining more responsibilities over the coming years, especially in the areas where you demonstrate an interest or level of expertise.

NOTE: Prior to becoming a CPA, candidates must have at least two years of experience in public accounting. You might already be certified as a junior accountant or you might be working toward certification.

  •  4-6 years Senior accountant – By this time, the majority of accountants have made their career decisions, and your job title will likely soon reflect your area of expertise.
  • 6+ years – After a few years in a senior position, more specific experience—your accomplishments and accolades—takes precedence over the number of years you’ve worked. You have to stand out if you want to become a manager or director. On the ladder, the highest position is not available to everyone.

CPA Salary in India

Given that Certified Public Accounting is a highly advanced field of accounting, you have a variety of career options to consider depending on your level of experience. Tax Advisory and Planning, Forensic Accounting, Auditing Services, Management and Consulting Services, Financial Reporting, etc., are some of the most sought-after career paths after earning a CPA. 

Here is a look at the salaries that CPAs can expect to earn depending on the industry they choose.

CPA Pay in India for New Graduates

In India, an entry-level or “fresher” CPA makes about 6 lakh rupees annually or about 50,000 rupees per month.

The average salary in major metropolises like Mumbai, Bangalore, Delhi, etc., can reach as much as 13.8 lakhs annually. This also changes from company to company; if you work for MNCs, your qualified CPA salary in India could range from 12.5 to 23 lakhs per year.

The average annual salary is ₹9,12,663 (INR)/yr.

With more experience comes a significant pay raise. The majority of the time, the pay is primarily based on your experience and expertise. Therefore, the salary that is withheld increases as more responsibilities is handled. Along with gaining work experience, many candidates prefer to enroll in short courses to increase their salary as they advance up the corporate ladder.

CPA Salary in India based on industry 

  • PetroChemicals Companies- 12 LPA
  • FMCG Companies- 10 LPA
  • Engineering & Construction- 9 LPA
  • Pharmaceutical & Life Sciences- 7 LPA
  • Education / Training Companies- 6 LPA

Conclusion

For many accounting professionals, obtaining a CPA license is a wise move. However, it makes the most sense for those looking to advance their careers in business and further their accounting education. Obtaining a CPA designation and, consequently, a competitive CPA salary in India, it takes time and effort.

Many senior-level finance positions require CPAs because it demonstrates a candidate’s ambition and intelligence. Therefore, the CPA’s greatest financial benefits might not manifest for several years. CPAs in non-management roles can anticipate salaries that are up to 15% higher than those of their peers, but they should also prepare for long hours, increased responsibility, and pressure.

Employers pay CPAs more because they expect more from them, which is a case where the adage “you get what you pay for” applies. The average annual salary is ₹9,12,663 (INR)/yr.



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Shivangi Shrivastava

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