How Much Do Accountants Make With an Associates Degree?

An Associate’s degree in accounting provides a foundational education in financial principles, software applications, and regulatory compliance. This two-year program equips individuals with practical skills for entry-level positions within various organizations. It serves as a direct pathway into the accounting job market and can also provide a solid academic base for those considering further education.

Average Salary Expectations

Accountants holding an Associate’s degree can anticipate a range of earnings, influenced by factors like experience and location. The average hourly pay for an individual with an Associate’s degree in accounting in the United States is approximately $24.92, which translates to about $51,834 annually. Entry-level positions typically see salaries around $42,000 to $45,900 per year. As experience is gained, earnings can increase, with the majority of accounting associate wages falling between $20.19 and $28.37 per hour, or roughly $42,000 and $59,000 annually. For individuals with more experience, salaries can reach up to $68,500 annually.

These figures represent broad averages, and actual compensation can vary significantly. For instance, in California, the average annual salary for an Accounting Associate is around $53,139. In Massachusetts, the average hourly pay for an Entry Level Accounting Associate is about $27.22.

Typical Job Roles and Responsibilities

Individuals with an Associate’s degree in accounting often begin their careers in roles that involve essential financial support functions. Common positions include Accounting Clerk, Bookkeeper, Accounts Payable Clerk, Accounts Receivable Clerk, and Payroll Clerk. These roles are fundamental to maintaining a company’s financial health and ensuring accurate record-keeping.

Accounting Clerk

An Accounting Clerk performs various tasks such as data entry, processing invoices, and maintaining financial databases. They assist in managing accounts payable and receivable, update financial records, and help prepare bank deposits and general ledger postings.

Bookkeeper

Bookkeepers are responsible for systematically recording, organizing, and managing financial transactions, including accounts payable, accounts receivable, and payroll. They reconcile bank statements monthly, prepare financial reports, and ensure compliance with tax regulations.

Accounts Payable Clerk

Accounts Payable Clerks manage the money a company owes, processing and verifying invoices, and ensuring timely payments to vendors. They track company invoice obligations and reconcile monthly statements.

Accounts Receivable Clerk

Accounts Receivable Clerks focus on ensuring a company receives payments for goods and services. They track outstanding invoices and post customer payments.

Payroll Clerk

Payroll Clerks process employee payments, maintain payroll records, and ensure compliance with federal, state, and local payroll regulations. They calculate wages, overtime, bonuses, and deductions, and respond to employee inquiries regarding payroll matters.

Factors Influencing Earnings

Several elements contribute to the variation in earnings for individuals with an Associate’s degree in accounting. Experience level plays a significant part, as earnings generally increase with years on the job. An entry-level accounting associate with less than one year of experience might earn around $54,925, while those with one to four years of experience could see their average compensation rise to approximately $56,817.

Geographic location also impacts salary, with compensation varying based on the cost of living and demand for accounting professionals in different cities and regions. For example, while the national average hourly pay is around $24.92, some areas like Chicago, IL, show an average of $26 per hour.

Industry differences contribute to salary variations, as compensation can differ between private companies, public accounting firms, government agencies, or non-profit organizations. Furthermore, additional skills and certifications can boost earning potential without requiring a bachelor’s degree. Proficiency in accounting software like QuickBooks, Excel, and Enterprise Resource Planning (ERP) systems is highly valued. Basic certifications, such as the Certified Bookkeeper (CB) designation, can increase salary and open doors to higher-paying roles or promotions.

Career Advancement Opportunities

An Associate’s degree in accounting can serve as a foundational step for substantial career growth. Many individuals choose to pursue further education, such as a Bachelor’s degree in accounting, which significantly broadens career prospects and increases earning potential. A Bachelor’s degree can open doors to higher-level positions like Staff Accountant, Auditor, or Tax Preparer, roles that typically require a more comprehensive understanding of accounting principles and practices.

Specialized roles can also emerge as individuals gain experience in particular areas. For example, focusing on forensic accounting support or tax preparation for individuals and small businesses can lead to more niche and potentially higher-paying opportunities. Internal promotions are another avenue for advancement, where demonstrated performance and tenure within an organization can lead to increased responsibilities and higher compensation. This progression often involves moving from clerical or support roles to positions with more analytical and decision-making duties.