How Much Do Auditors Make?
Auditors play a vital role in the financial management and transparency of both private and public organizations. From monitoring financial records to ensuring legal compliance, their work contributes enormously to the fiscal health of a company. But, one question that often arises is, how much do auditors actually make? This article will provide a detailed insight into their earnings, highlighting various contributing factors.
Auditor salaries are highly dependent on a multitude of factors. These include level of experience, industry, geographical location, and level of education and certification. However, as per the Bureau of Labor Statistics (BLS), the median pay for auditors in 2020 was $73,560 per year or $35.37 per hour.
Experience and Education
Generally, auditors with more experience and education earn more. Starting auditors or those with less than one year of experience make an average salary ranging from $40,000 to $60,000. Mid-level auditors, having a few years of experience, can earn between $60,000 and $80,000, whereas, senior auditors can expect anything above $80,000, sometimes reaching six figures.
Getting a professional certification, like becoming a Certified Public Accountant (CPA), can also significantly increase compensation. Certified auditors often earn 10-15% more than those without certification.
Industry and Geographical Location
The industry in which an auditor works also determines their salary. For example, auditors in finance and insurance sectors usually receive higher pay than those in government entities. However, it’s not always about the industry. Sometimes, companies with a high volume of financial transactions and complexity may offer higher salaries to attract top auditing talent.
Geographical location plays a crucial role as well. For instance, auditors in larger cities and financial hubs, such as New York or Washington D.C, usually earn more thanks to higher living costs and demand for their skills.
The Impact of Technology
In today’s digital world, auditors who are proficient with financial software have an edge over others. The use of fixed asset management software is an emerging trend that is reshaping the auditing landscape. This type of software not only provides auditors with powerful tools to track and verify a company’s assets but also increases their efficiency, allowing for an ability to handle more clients and ultimately increasing their earnings potential.
Conclusion
In conclusion, the question ‘how much do auditors make?’ has a multi-faceted answer. While the median salary for auditors is around $73,560, this figure can vary greatly based on experience, education, industry, geographical location, and technological proficiency.
As we’ve seen, embracing new technologies like fixed asset management software can dramatically improve auditors’ performance and consequently their compensation. Today’s auditors should not only have a strong understanding of finance but also adopt the latest technology trends to stay competitive and ensure career progression.