As the world becomes more and more financially intertwined, accounting is becoming increasingly important. Whether you are working for a large corporation, a small business, or as an independent contractor, understanding the basics of accounting will always be essential. Not only will it help you keep track of your own finances, but it can also be highly lucrative. That's why in this guide to accountant salaries in India, we will take you through everything you need to know to maximise your earning potential as an accountant.
If you're a fresh graduate or young professional looking for career guidance and career opportunities in the field of accounting in India, then keep reading!
Who is an Accountant?
Accountants are professionals who manage financial records, analyse data, and prepare financial reports. In India, there are several job roles available for accountants, such as financial accountant, cost accountant, tax specialist, and more. The skills required for each role include attention to detail, analytical ability, and proficiency in accounting software.
Salary Potential in Accounting
Accounting is a lucrative field with vast opportunities for growth and development. According to payscale.com, the average salary for an accountant in India is ₹3.5 lakhs per year. However, this figure varies depending on several factors, such as location, experience, job role, and company size.
Accountants can expect to earn more as they gain experience and acquire new skills. To help you understand better what to expect at various levels of accounting roles in India, we have put together a table with the average salaries of entry-level accountants and senior-level professionals in 2024.
Factors Affecting Accountant Salaries
LOCATION
Location plays a significant role in determining an accountant's salary in India. For example, accountants working in metropolitan cities like Mumbai or Delhi tend to earn more than those working in smaller towns or rural areas. This is because companies operating in these big cities tend to have larger turnovers than those operating elsewhere. As such, their accountants are likely to earn higher salaries.
Additionally, different regions have different living costs, which may also influence the salary scales for accountants.
Here is a table outlining the average salaries of Accountant roles across various cities:
SKILLS AND EXPERIENCE
Experienced accountants with sought-after skills can earn significantly more than those who are just starting their careers. For example, an accountant with a few years of experience and certifications such as ACCA or CA can expect to earn much more than an entry-level accountant without any specialisation.
Moreover, accountants who have specialised in areas like taxation, auditing, forensic accounting, and financial analysis can command higher salaries than those without any specialisation.
Experience is another crucial factor affecting the earnings potential of accountants. As you gain more experience, your earning potential grows.
- A fresh CA would make about INR 7-9 lakhs annually, while a CA with 5 years of experience can earn up to INR 16-20 lakhs.
- A CFA charter holder’s annual salary range is between INR 7 Lakhs - INR 25 Lakhs based on their years of experience.
- Someone with extensive knowledge of Indirect Taxation could earn between INR 15 lakhs - INR 20 lakhs annually.
JOB ROLES
Accountants may work in various capacities, ranging from entry-level positions like junior accountants or account executives to mid-level roles like senior accountants or finance managers, etc., all the way through senior management positions such as finance controllers or CFOs.
Different roles come with different levels of responsibility and compensation structures that reflect these differences accordingly.
For instance, the salary range for a Junior Accountant is between ₹1.2 lakhs to ₹5 lakhs depending on the organisation size, whereas for a Financial controller and account manager salary , it ranges between ₹15 lakhs to ₹60 lakhs.
COMPANY SIZE
Company size is another factor that affects an accountant's salary in India. Larger companies typically require extensive financial management, which requires the services of experienced accountants with specialised skill sets. As such, these companies tend to offer higher salaries to attract top talent from the job market.
For instance, an entry-level accountant working at a Big Four accounting firm can earn between INR 7 lakhs - INR 11 lakhs, whereas the salary range for someone working at an SME could be much less.
Education and Upskilling Options for Accountants
To become an accountant in India, you can pursue various education options, such as a Bachelor's degree in Commerce or Accounting or professional certifications like CA or CMA.
WiZR provides aspiring accountants with financing solutions for upskilling and certification programmes such as Tally ERP9 and GST training courses.
Comparison of Different Education Options with Durations and Fees:
Accounting Specialisations
Accounting has several specialised areas that are expected to grow, such as forensic accounting and sustainability accounting. Forensic accountants assist in legal matters and investigations, while sustainability accountants help businesses assess their environmental impact. Pursuing a specialised area of accounting can lead to higher salaries and more significant opportunities as a career in account.
Industry Growth for Accountants
The Ministry of Statistics and Programme Implementation projects a growth rate of 6% for the accounting industry from 2020 to 2025. This growth is due to the increasing demand for financial services in India, including tax planning, auditing, and financial reporting.
Kickstart Your Career in Accounting
In conclusion, there are several factors that affect accountant salaries in India. By understanding these factors and taking steps to enhance your skills and experience through upskilling programmes or certifications, you can maximise your earning potential as an accountant in India.
Remember, WiZR's online platform offers various course options and financing opportunities to help you succeed.
FAQs
1. Are there remote jobs for accountants?
Yes! Many companies offer remote job opportunities for accountants. With advances in technology, it is easier than ever before to work remotely from anywhere in the world.
2. Where can I find information about different education options for accountants?
You can find information about different education options for accountants on various online platforms like WiZR, professional associations like ICAI or ACCA, or university websites offering related courses.
3. When is the best time to pursue a professional certification like CA or CMA?
The best time to pursue a professional certification like CA or CMA is immediately after completing your graduation, as it provides an added advantage when seeking employment.
4. Who regulates accountants in India?
In India, accountants are regulated by The Institute of Chartered Accountants of India (ICAI) and The Institute of Cost Accountants of India (ICMAI).
