From freshly minted graduates to seasoned professionals, accountants play a vital role in virtually every industry. They keep businesses running smoothly, ensure compliance with laws and help companies strategise for the future.

In this blog, we’ll break down everything you need to know about accountants’ salaries in the UK. We’ll look at how much newly qualified accountants earn, factors affecting their salaries and which types of accountants bring home the biggest paychecks. Plus, we’ll dive into the qualifications needed and how they impact earning potential. 

And if you’re considering a career in accounting, we’ve also got a quick-fire guide to get you started on the right foot. Let’s jump in!

How Much Do Accountants Make? An Overview

How much do newly qualified accountants make in the UK?

When it comes to new accountants’ earning potential, this varies widely based on your qualifications, job role and the sector you work in. But generally, accounting is a well-paying profession with plenty of growth opportunities. Newly qualified accountants in the UK can expect to start their careers with a yearly salary somewhere between £30,000 to £40,000. 

Of course, this range depends significantly on the location, size of the firm (for instance, whether it’s a “Big Four” company) and industry you’re working in. For instance, those working in London or for large multinational firms tend to be at the higher end of this scale.

What do accountants earn in the UK?

Just like newly qualified accountants, experienced accountants’ salaries in the UK  vary massively. 

On average, a qualified accountant earns around £45,000 to £55,000 per year. However, with experience and additional qualifications (for instance, adding a CIMA qualification), it’s not uncommon for accountants to earn upwards of £70,000 to £90,000. 

In certain high-level positions, such as Chief Financial Officer (CFO), accountants can easily make over £100,000 annually.

What’s the highest-paid type of accountant?

When it comes to job roles bringing home the biggest paycheck, a senior position and specialised skill set make all the difference. Top accountancy earners make big decisions, hold significant responsibility and navigate complex financial landscapes. 

Some of the highest-paid job roles include:

• Chief Financial Officers (CFOs): Often at the pinnacle of the salary spectrum, CFOs can earn between £100,000 and £200,000 or more, depending on the size and complexity of the organisation.
• Financial Directors: Typically earning between £80,000 and £150,000, these professionals play a critical role in overseeing financial strategies and operations.
• Forensic Accountants: Specialists in investigating financial discrepancies and fraud, forensic accountants can command salaries ranging from £50,000 to £100,000, based on their experience and the intricacy of the cases they handle.
• Tax Managers: With a deep understanding of tax laws and regulations, tax managers generally earn between £60,000 and £90,000, depending on their expertise and the size of the company they work for.

Do accountants earn well?

Yes, accountants generally earn well, especially when compared to other professions with similar education and experience. For instance, considering fields like teaching or social work, accounting offers higher starting salaries and greater potential for salary growth. 

Here are a few comparisons.

• Teaching: A newly qualified teacher in the UK starts with a salary of £30,000, which is similar to a newly qualified accountant. However, the growth potential is more limited, with experienced teachers usually earning around £40,000 to £50,000, depending on location and seniority.
• Nursing: Newly qualified nurses earn around £27,000. While there are opportunities for advancement, such as becoming a specialist nurse or nurse consultant, salaries typically peak around £45,000 to £55,000. The average is around £35,000.
• Law: Starting salaries for newly qualified solicitors in the UK range from £30,000 to £40,000, similar to accountants. However, those in top law firms can earn significantly more, with experienced solicitors earning well over £100,000, akin to top accounting roles.

Why do chartered accountants earn so much?

Chartered accountants earn so much for three main reasons: experience, knowledge and qualifications.

Chartered accountants possess deep understanding of financial management, auditing and strategic planning, making them invaluable to businesses and justifying their higher pay. As highly sought-after professionals, chartered accountants earn higher salaries due to rigorous training and extensive experience, high levels of responsibility and the benefits they bring to businesses.

We’ve written a complete guide to accountancy qualifications (so check this out), but there are three main routes to working as an accountant in the UK. This includes:

• ACA (Associate Chartered Accountant): Requires 450 days of practical experience, 15 exams and professional development. Focuses on audit, financial accounting and business strategy.
• ACCA (Association of Chartered Certified Accountants): Involves 13 exams, an ethics module and three years of professional experience. Covers a wide range of financial and management accounting topics.
• CIMA (Chartered Institute of Management Accountants): Emphasises management accounting and business strategy. Requires 12 exams and three years of relevant work experience. Includes the CGMA designation.

Accounting Qualifications: Salaries Compared

What is the salary of a CIMA?

If you’re studying for your CIMA qualifications, you’re already ahead of the game. According to a survey by the AICPA and CIMA, CIMA students earn around £38,000 on average, which is impressive considering the UK’s median pay is just £31,000. 

So even while still in training, CIMA accountants pull in more than many other professionals. 

Once you’ve finished your studies and secured the CGMA designation, you can expect to start at about £54,000. And it doesn’t stop there. Experienced CIMA accountants can easily see their salaries climb to £93,000 or more as they progress in their careers.

Who earns more, ACA or CIMA?

According to research from the ICAEW, accountants with an ACA qualification can start off earning around £40,000. With a few years of experience under their belts, this can rise to about £63,000. 

Since ACA-qualified accountants often work in traditional practice areas like audit, tax and assurance, these roles come with relatively high salaries – reflecting strong demand for their expertise.

Comparatively, CIMA-qualified professionals tend to earn a bit more. Starting salaries for CIMA graduates are typically just over £50,000. Thanks to the emphasis on management accounting and business strategy, CIMA accountants often move into senior roles, such as CFOs, business analysts or financial managers, where salaries can grow significantly.

Which pays more, CIMA or ACCA?

Both CIMA and ACCA certifications can lead to lucrative careers, but CIMA tends to provide higher starting salaries and a greater earning potential as graduates advance into strategic positions.

For those with an ACCA qualification, starting salaries generally fall between £25,000 and £45,000, varying by factors like location, company size and industry. With experience, particularly in higher-level positions such as directors, top salaries can surpass £100,000. ACCA-qualified professionals often find opportunities in banking, auditing, financial consulting, taxation and business management, with average earnings ranging from £35,000 to £58,000.

On the other hand, CIMA-qualified individuals with the CGMA designation typically begin with a higher starting salary, around £54,000. Since CIMA focuses on management accounting and strategic roles, experienced professionals can see their salaries increase significantly. It’s common for seasoned CIMA accountants to earn £93,000 or more as they move into senior roles such as CFOs or financial managers.

Getting into Accountancy: A Quickfire Guide

If you’re thinking about getting into accountancy, here’s your quickfire guide to job roles, qualifications, career paths and the future of the profession.

What does an accountant do?

In a nutshell, accountants play a crucial role in managing and improving an organisation’s finances. 

They handle a range of activities that keep businesses and organisations running smoothly. Accountants can work in many different areas like public accounting, corporate finance, government or non-profits.

Key roles depend massively on the job. But this might include:

• Preparing financial statements: Accountants put together and analyse financial info to create important reports like balance sheets, income statements and cash flow statements. Basically, they make sure everything adds up correctly.
• Conducting audits: They dig into financial records to check everything is accurate and the company is following all rules and regulations.
• AsManaging budgets: Accountants help businesses plan their spending by preparing budgets and keeping an eye on how money is spent. They make sure a company stays on track financially.
• Advising on financial strategies: They offer advice and recommendations to help businesses make smart financial decisions and plan ahead.

What GCSEs do you need to be an accountant?

If you’re thinking about becoming an accountant, having a good mix of GCSEs will set you up for success. There’s no strict list of required subjects, but some are definitely helpful.

First off, you’ll want to do well in Maths, since you’ll be dealing with numbers and calculations a lot. English is also key, as being able to communicate clearly (both in writing and speaking) is a big part of the job. It helps if you can explain financial stuff in a way people can easily understand. 

Plus, subjects like Business Studies or Economics can give you a nice head start, offering insights into how businesses operate and basic financial concepts.

What A Levels do I need for accounting?

If you’re gearing up for a career in accounting, choosing the right A-levels can make a big difference.

Maths and Further Maths are top choices because they help you develop essential numerical skills that you’ll use every day. Economics is another strong option, as it helps you understand how economic systems work and the financial principles that drive them. Business Studies can also be really useful, giving you insights into how businesses run and how finance fits into the bigger picture. 

And if you can take Accounting itself, that’s a huge plus. It’s directly relevant and can give you a head start when you dive into more specialised studies later on.

Can I become an accountant without Maths?

Technically, yes. You can become an accountant without a Maths A Level, but having a solid grasp of maths is important. So you’ll want at least a pass in your Maths GCSE. 

Accounting relies heavily on numerical analysis and problem-solving, so being comfortable with numbers is crucial for success in the field. While you might still pursue accounting without a Maths qualification, you’ll find strong numerical skills will make your studies and job so much easier.

Is becoming an accountant hard?

Becoming an accountant takes a lot of dedication and hard work. There’s no sugarcoating it! You’ll be looking at lots of revision, challenging exams and several years of hands-on experience. But trust us, the effort is worth it. If you’re into finance and business, accountancy can be a really rewarding career.

For instance, the ACA qualification involves 450 days of practical work, 15 exams, and ongoing professional development. The ACCA path requires passing 13 exams, completing an ethics module and gaining three years of professional experience. And for CIMA, you’ll need to pass 12 exams and accumulate three years of relevant work experience.

So yes, becoming an accountant is demanding. But if you’re up for the challenge, the payoff can be pretty fantastic.

Is accounting a good career path?

Accounting is a great career choice for several reasons. It offers stability and security, which is a big plus in today’s job market. If you enjoy diving into details, analysing data and solving problems, accounting might be right up your alley.

One of the best things about accounting is its versatility. You can work in almost any industry you’re interested in – whether that’s public accounting, corporate finance, government or non-profits. For example, if you’re into fashion, you could work for a major retail brand, or if you’re passionate about environmental issues, you could work for an eco-focused non-profit.

Accounting also offers solid career progression. You can start in junior roles and work your way up to positions like Financial Controller, Finance Director, or even CFO. Specialisations, like forensic accounting or tax advising, can also lead to higher salaries.

In terms of work-life balance, many accounting jobs offer flexibility, and remote work is becoming more common. While entry-level positions might require extra hours during busy periods, overall, accounting provides a good balance.

Will accounting be replaced by AI?

It’s a common concern, but the short answer is no. Accounting won’t be fully replaced by AI. 

Instead, AI is transforming the field by taking over routine tasks like data entry and transaction processing. This shift is actually great news for accountants because it means they can focus on more engaging and valuable work. With AI handling the repetitive stuff, accountants are moving into strategic roles where they provide insights and advice to help businesses make smarter decisions.

Remember, accountants are also key advisors. They interpret financial data, ensure compliance and help shape business strategies – tasks that AI can’t fully replicate due to their need for human judgement and relationship-building.

So far from replacing jobs, AI is opening up new opportunities. Tech-savvy accountants who adapt to these dynamic and exciting changes will find themselves at the forefront of the industry.

Are you thinking about a career as an accountant?

In summary, accounting is a rewarding, lucrative and stable career with plenty of opportunities for growth and specialisation. With the right qualifications and experience, accountants can achieve impressive salaries and hold influential positions within organisations.

Ready to kick-start your career? 

Reach out to our graduate coaching team for expert guidance. With over 20 years experience, we’ve helped countless graduates and students secure their dream jobs and internships. Let us help turn your career goals into reality.