Are you a fresh graduate or young professional in India looking for a career path with excellent earning potential? Have you considered exploring the world of accounting?
Accountant salaries are an essential consideration when choosing a career, and it's crucial to understand the potential for growth and development in this industry. In this article, we will provide you with insights into various aspects of accounting as a career path.
What Does an Accountant Do?
Accounting is a critical function for any business or organisation, making it a highly sought-after profession. As an accountant, you will be responsible for financial planning, analysis, and reporting to help companies make informed decisions about their finances.
Job Potential and Career Paths
There are various job roles to consider when pursuing a career in accounting, including financial analyst, tax accountant, and internal auditor.
- A financial analyst analyses financial data to provide recommendations on investment options for businesses or individuals.
- Tax accountants prepare tax returns for companies or individuals while adhering to government regulations.
- Internal auditors ensure that company policies and procedures comply with regulations.
Salary Structure of Accountants
As an aspiring accountant in India, you can expect decent pay right from the beginning of your career.
- The average starting salary of an entry-level accountant is around ₹4-6 lakhs per annum.
- Mid-level accountants can earn between ₹8-15 lakhs per annum.
- Senior-level accountants with significant experience can earn over ₹25 lakhs per annum.
Factors affecting salaries
Several factors may influence the salaries of accountants in India.
- Firstly, location plays a vital role; cities like Delhi, NCR, and Mumbai offer higher pay compared to other cities.
- Secondly, one's skills and experience level also impact earnings; senior-level roles requiring several years of experience usually come with higher compensation packages than entry-level roles.
- Moreover, different accounting job roles offer varying salaries in India's accounting industry as well. For instance, a tax specialist or forensic accountant might earn more than bookkeepers or cost accountants, depending on their work experience and skillset.
- Lastly, company size also affects salaries significantly. Bigger companies usually offer better compensation packages compared to smaller ones.
Entry-level vs Mid-Level vs Senior-Level Accountant Salaries
Location-Based Salaries for Accountants
Education and Certification Options
To become an accountant, you can choose from several education options, such as a bachelor's degree in commerce or accounting or postgraduate degrees like an MBA in finance.
A Chartered Accountant (CA) certification is highly valued in the accounting industry and requires passing a rigorous exam and completing an articleship. A Certified Management Accountant (CMA) certification focuses on management accounting and financial management. Pursuing either of these certifications can lead to better job prospects and higher salaries.
WIZR provides financing options that could help fund your education or certification programmes.
Industry Growth Trends
According to industry reports, the accounting sector in India is expected to grow at a compound annual growth rate of 8% between 2020-2025.
As digitization of financial transactions takes hold across industries, accountants will need advanced technical skills such as data analytics and artificial intelligence. To remain relevant amid changing industry dynamics, upskilling is crucial.
As you gain experience, it is essential to continue upskilling through professional courses and certifications like CMA, CPA (Certified Public Accountant), or ACCA (Association of Chartered Certified Accountants).
Maximising Your Salary With Specialisations
There are various specialised areas of accounting that young professionals can choose from, such as forensic accounting, sustainability accounting, or financial planning and analysis.
Choosing a specialised area of accounting has its pros and cons. Specialising in a niche area can lead to higher salaries and better job prospects, but it also means that your job opportunities might be limited compared to those of a general accountant. It's essential to research the field thoroughly before choosing any specialised area.
Kickstart Your Accounting Career
In conclusion, as an aspiring accountant, you have a promising future ahead of you. To assist you in your journey, WIZR offers career guidance and financing options for professional development courses that can help you achieve your goals.
FAQs
1. Are there remote jobs for accountants?
Yes! With the rise of remote working post-pandemic, many companies are open to hiring remote employees. Freelancing or starting your own virtual accounting business is also an option.
2. Which industry offers the highest-paying jobs for accountants?
Industries such as finance, banking, consulting, IT services, and e-commerce offer some of the highest-paying jobs for accountants in India.
3. Can I become an accountant without getting a degree?
While having a degree is highly recommended for career growth opportunities in accounting, there are some alternative routes, such as completing certification programmes or apprenticeships, that can lead to accounting careers.
4. Who regulates accountants in India?
The Institute of Chartered Accountants of India (ICAI) regulates chartered accountants whereas the Institute of Cost Accountants (ICAI) looks after the cost-accountancy profession in India.
