There are roles for accountants across every sector of the economy—from the world’s largest companies to non-profits and the government. While the field may not get as much recognition or experience big booms like other industries, the need for qualified accountants is a steadfast necessity—and these professionals can easily fetch six-figure salaries.
The 2021 median pay for accountants and auditors was $77,250 per year according to the U.S. Bureau of Labor Statistics. A master’s degree in accounting (MAcc) typically helps candidates snag a higher salary, with an average expected income of $78,000, and senior roles that surpass $100,000, according to Payscale.
Roles for accountants and auditors are projected to grow 6% in the next decade, as fast as the average growth rate of all occupations, according to the U.S. Bureau of Labor Statistics. The field is expected to produce about 136,400 jobs every year until 2031, and those people looking to capitalize on the steady market may be interested in a master’s of accounting degree.
“Accounting programs, just like finance, management, marketing, and other business programs are all adapting and morphing as the job market changes,” Jonathan Stanley, the director of the school of accountancy at Auburn University, tells Fortune. “I strongly believe that accounting is going to stand up well over the course of time as a desirable major and desirable profession to enter.”
Fortune’s ranking of the best online master’s in accounting programs offers some schools and programs to consider, but what about if you’re not sure if continued education in accounting is right for you? Here are some things to consider before deciding if a master’s in accounting is worth it for you.
Accounting is a complex and constantly evolving field With new regulations and technologies emerging every year, it can be challenging to stay current and advance your career with just an undergraduate degree Many accounting professionals find that earning a master’s degree better prepares them for high-level positions and specialized careers. But is a master’s in accounting really worth the time and investment?
In this comprehensive guide, we’ll explore the key benefits of a master’s in accounting, what the degree entails, admissions requirements, potential careers and frequently asked questions to help you decide if graduate studies are right for your goals.
The Benefits of Earning a Master’s in Accounting
Here are some of the top reasons to consider a master’s program in accounting:
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Higher earning potential Professionals with a master’s degree in accounting earn $30,000 more on average compared to those with just a bachelor’s degree The advanced credentials can boost your salary potential throughout your career.
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Specialized knowledge: Master’s programs allow you to gain expertise in areas like auditing, taxation, forensic accounting, international standards and environmental accounting. This specialized knowledge prepares you for the most in-demand and lucrative roles in the field.
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Advanced analytical skills: Master’s coursework emphasizes data analytics, research and critical thinking skills required for leadership roles in accounting. Graduate studies sharpen your ability to analyze complex financial information.
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Improved job prospects: A master’s degree makes you more competitive in the job market. Many senior and management-level accounting jobs require an advanced degree. Companies know graduate education provides greater expertise.
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Networking opportunities: In a master’s program, you’ll build relationships with professors, alumni and fellow students. This network can help you land jobs and advance your accounting career.
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** Higher CPA exam pass rates:** Earning a master’s degree that meets the 150-credit requirement to take the CPA exam leads to higher exam pass rates compared to candidates without a master’s.
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Flexibility: Many master’s in accounting programs offer evening, weekend and online classes to accommodate working professionals. You can earn your degree without putting your career on hold.
What Does a Master’s in Accounting Program Entail?
A master’s in accounting curriculum provides advanced training in financial statement analysis, accounting theory, audit and assurance standards, business law and ethics. Programs typically take 1-2 years to complete full-time.
Some common courses in master’s of accounting programs include:
- Financial Statement Analysis
- Auditing Standards
- Tax Research and Planning
- Forensic Accounting
- International Accounting
- Accounting Ethics
- Accounting Analytics
- Accounting Theory
- Business Law for Accountants
- Fraud Examination
Programs often include a capstone project or thesis paper focused on a challenging issue or emerging topic in the accounting field. Courses emphasize critical thinking, complex problem solving, leadership, and presentation skills required in high-level corporate accounting roles.
What Are the Admission Requirements?
Admission to master’s in accounting programs is competitive. Here are some typical requirements:
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Bachelor’s degree: Most programs require a B.S. in accounting, finance or related business field with a strong GPA from an accredited university. If your bachelor’s is in another field, you may need to complete prerequisite accounting courses.
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GMAT/GRE scores: Many schools require you submit GMAT or GRE test scores to assess your quantitative, verbal, analytical and written skills. Competitive scores help your admission chances.
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Letters of recommendation: Programs often require two or three recommendation letters commenting on your academic and professional abilities. Letters from accounting professors or supervisors carry the most weight.
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Personal statement: Admission committees look for a compelling personal statement explaining your interest in the program and career goals. This essay is a vital part of the application.
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Accounting experience: Programs favor applicants with internship, volunteer or work experience in the accounting field. This demonstrates your commitment to the profession.
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Resume: A professional resume summarizing your academic, extracurricular and work experience should be included in your application package.
Meeting minimum requirements is not always enough. Applicants with outstanding credentials have the best chance of admission to top accounting master’s programs.
What Careers Are Possible With a Master’s in Accounting?
A master’s opens doors to lucrative and challenging careers in accounting. Here are some top jobs you can pursue:
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Chief Financial Officer (CFO): As the top financial executive, CFOs oversee all accounting, budgeting, compliance and reporting functions of large companies or organizations. Median Salary: $183,750.
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Controller: Controllers manage all aspects of an organization’s accounting operations. They oversee the preparation of financial statements, taxes, and regulatory reporting. Median Salary: $140,000.
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Accounting Manager: Accounting managers supervise teams of accountants and auditors. They implement accounting systems, policies and internal controls for organizations. Median Salary: $81,000.
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Auditor: Auditors examine organizations’ financial statements and operations to ensure compliance with accounting standards and principles. Median Salary: $78,000.
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Forensic Accountant: Forensic accountants investigate financial crimes like embezzlement, securities fraud and money laundering. They may work for accounting firms, law enforcement, government or corporations. Median Salary: $80,000.
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Financial Analyst: These analysts evaluate economic trends, financial forecasts and investment opportunities. They provide recommendations to help organizations and clients make sound business and financial decisions. Median Salary: $96,220.
A master’s degree, combined with professional certifications like the CPA credential, positions you for the highest paying accounting roles. The advanced education prepares you to handle senior-level job duties.
Frequently Asked Questions
Should I get an accounting master’s or MBA?
An MBA is generalized business management education, while a master’s in accounting provides deep expertise and advanced skills in accounting practice, standards and analysis. Choose an MBA if you want to lead and manage business operations. A master’s in accounting is better for accounting specialization.
Do I need work experience to apply for a master’s in accounting?
Some relevant accounting experience will make your graduate school application stronger, but is not absolutely required. Undergraduate internships or accounting clerk roles can demonstrate your interest. Many students start master’s programs directly after finishing their bachelor’s degree.
Can I get my CPA with just a master’s in accounting?
In most states you need 150 credit hours to qualify for the CPA exam. Earning a master’s degree in accounting meets this education requirement. You’ll still need to pass the rigorous CPA exam and meet state licensure requirements, but a master’s program helps prepare you.
Is it worth getting a master’s in accounting online?
Reputable accredited universities offer online master’s in accounting degrees with curriculum equivalent to campus programs. An online master’s provides excellent ROI and flexibility for working professionals. Ensure the program prepares you for CPA licensure in your state.
Can I get my master’s in accounting part-time?
Many on-campus and online accounting master’s programs offer part-time enrollment options ideal for students working full-time. Part-time programs take longer but allow you to balance work and graduate studies. Make sure you can complete the degree within your program’s time limit.
Is a Master’s Degree in Accounting Worth It?
While a master’s in accounting requires an investment of time and money, the salary boost, career advancement opportunities and specialized accounting knowledge make the degree highly valuable for aspiring CPAs and accounting leaders. With passion for the field and strong effort in your graduate studies, a master’s in accounting can elevate your expertise and career potential.
A MAcc degree can help boost your salary
A MAcc can provide some more obvious benefits for graduates, like increased salary, Stanley says. “There are bigger payouts,” he notes. “In life, things that are hard and challenging oftentimes lead to the biggest rewards.”
While starting salaries are often on the lower end, accounting professionals can see a larger payoff down the line, Stanley says. The average top accounting executive salary in the U.S. is more than $234,00 according to Salary.com.
“The starting salaries are not always at the top, but then say five, ten, 15 years out, those individuals are in leadership positions making a lot, earning very nice compensation packages,” Stanley adds.
“There is a salary differential between getting a bachelor’s and getting a master’s,” Dawkins adds. “Firms know that you spent an extra year of your life and you spent money getting that master’s degree, so they do reward you with some increase in pay for having a master’s degree. There is a financial benefit.”
Of course, the payoff of higher potential salary does depend on personal financial situations, as well. “Obviously, if you’ve given up an extra year of your life, and if you had to take out student loans to pay for those extra 30 hours, getting that small annuity may or may not be worth it in the long run, but it’s what you had to do to become a CPA,” Dawkins tells Fortune.
A master’s degree program helps prepare you for the CPA exam
The certified public accountant (CPA) exam is the professional licensing test taken by those people looking to become certified public accountants. In most states, 150 credit hours are required to be eligible to sit for the CPA exam, 30 hours more than a traditional bachelor’s degree program typically requires.
The extra 30 hours needed for the CPA exam don’t have to be obtained via a master’s program, and the specific hour requirements can differ from state to state. However, a MAcc program can serve as a natural bridge to obtaining the necessary hours to complete the CPA exam, and it’s a popular option amongst accounting students, says Mark Dawkins, a professor of accounting at the University of North Florida. Dawkins is also the president of the American Accounting Association.
“The reality is that if a student wants to be a CPA, then the current rules in all states are that you have to get 150 hours,” Dawkins says. “Most students choose to pursue the master’s degree because they have to get the hours anyway. I hate to say it’s kind-of mandated, but if you want to be a CPA, you’re going to have to get those 30 hours, and most students say, ‘If I have to get the hours anyway, I might as well get the degree.’”
This was exactly what Dawkins did when he enrolled in master’s of accounting program after completing his undergraduate degree in 1985. Similarly, many of Auburn’s MAcc students enroll immediately after completing their bachelor’s degrees in accounting, Stanley adds.
Though a master’s program has become a popular next step to complete CPA hour requirements, Stanley says the advanced degree still holds merit and teaches important skills. And, in fact, people who only want to pass the CPA exam can do so without a master’s degree, he adds.
“Graduate courses are providing value in just the knowledge and skill set that you’re gaining, and oftentimes that knowledge and skills are not directly tested on the CPA exam. A master’s in accounting is not just a CPA prep course,” Stanley notes. “The master’s program is helping you develop higher level thinking and develop expertise and emerging technologies and such—critical thinking, ethical awareness, global mindset, all of those types of outcomes from the graduate coursework are valuable and can help position you for long-term success above and beyond just aiming to pass the CPA exam.”
That said, one advantage of pursuing a master’s degree in accounting is pass rates for the exam can be much higher among graduates of these programs. The national pass rate for the CPA exam historically averages between 45% to 55%, though rates vary by the quarter of exam administration and section, according to Surgent, an accounting and financial education organization.
Auburn University’s pass rate is about 85%, according to Stanley. Meanwhile, the pass rate is about 90% among Purdue University’s MAcc students, says Troy James, a clinical professor of accounting and the master’s of accounting director at the university.
