Does it Pay to get a CPA? How License and Skill Levels Impact Accountant Salary

Abstract

The United States has a severe shortage of qualified accountants. This crisis did not arise overnight; moreover, convincing data is needed to motivate stakeholders to make necessary changes. One motivating factor is to showcase how professional license and an increase in accounting skills could increase employee compensation. Using human capital theory, this study examined the relationships among accounting skill sets, professional licenses, and current salaries. A quantitative design study was used to gather evidence from various accounting professionals across the state of Hawaii. With a sample size of 206, results from regression analysis indicated that a professional’s work experience, working hours, and licensures all positively related to salary. Further analysis disclosed that the state-level cost-of-living index has a significant relationship with accountant salaries. Nevertheless, Hawaii’s average accountant salary is much lower than the predicted value. The results suggest that accounting professionals should emphasize the importance of developing skills and obtaining licensure to support salary increases, especially in areas with a high cost of living.