question about accounting?

Question

I am majoring in accounting. I know a cpa working for a firm makes about 50-70K but i was wondering how much does an average CPA make if they are self employed. I know a lot of conditions apply but lets say i work about 40-50 hr weeks

Answer 1

What country, what city and any specialisations?

Answer 2

I will say around $30,000 average. A really good Accountant knows the IRS and other financial goodies and what he/she save the company per year dictates a $50K and up salary.
I give an example to help. Say you in America and your company want to buy products from Poland. A good Accountant knows Poland may convert to the Euro soon. Since money markets change by the minute. Say 1 USD is worth 3 PLN. Your company buy products from Poland a if the price is 3000 PLN it cost the company 1000 USD and the money converted. Now Poland convert to the Euro which is worth more than the American Dollar and the money has not changed hands until the product delivered. So, now your American company may have to pay 1500 USD for the product. A good Accountant Hedges the Company's money and they actually pay only $900 USD when the deal go down. He saved the company $600 USD knowing the game and the company is VERY happy with what he/she do and this is reflected in that Accountants Pay check. Because we really talking money amounts much higher than my example. What the Good Accountant is doing is making His/Her paycheck in a month with what they save the company. Hope this helps and you understand my example..

Answer 3

Owning your own business is a lot of work and there are no guarantees. How much you make depends on a lot of things, the market, your specialties, your overhead structure, your marketing/networking skills...
Of the people I know who own their own accounting firm, they live it. So I'd say, at least starting out at your own CPA firm, you'll have to work way more than 50hrs in order to keep in the black.