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Accountant-contractor vs staff accountant

The differences between accountant-contractors and staff accountants can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an accountant-contractor and a staff accountant. Additionally, an accountant-contractor has an average salary of $56,906, which is higher than the $54,216 average annual salary of a staff accountant.

The top three skills for an accountant-contractor include reconciliations, general ledger accounts and payroll taxes. The most important skills for a staff accountant are reconciliations, account reconciliations, and GAAP.

Accountant-contractor vs staff accountant overview

Accountant-ContractorStaff Accountant
Yearly salary$56,906$54,216
Hourly rate$27.36$26.07
Growth rate6%6%
Number of jobs60,024115,930
Job satisfaction-4
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 76%
Average age4444
Years of experience44

What does an accountant-contractor do?

An accountant contractor directly manages a customer's business. The contractor works exclusively on the company and organizes all its financial reports. The accountant contractor controls, inspects, and encodes all the company's financial transactions, ensuring that everything is well-accounted for and adequately documenting its activities. The contractor must be licensed, have expert skills in accountancy, be well-organized, have a high level of communication skills, and work under pressure.

What does a staff accountant do?

Staff accountants are employees who are part of the company's accounting department. They are usually certified public accountants (CPAs). Staff accountants should be familiar with accounting tasks. Previous accounting experiences play a huge advantage in their success. They perform a variety of accounting responsibilities such as information verification and analysis, financial report preparation and presentation, financial account reconciliation, billing and payment receiving activities, vendor database management, and invoice processing requirements. They should also know how to do bookkeeping. Staff accountants should have good communication skills, analytical skills, and decision-making skills. They should also be organized and trustworthy since they will be handling confidential information.

Accountant-contractor vs staff accountant salary

Accountant-contractors and staff accountants have different pay scales, as shown below.

Accountant-ContractorStaff Accountant
Average salary$56,906$54,216
Salary rangeBetween $44,000 And $73,000Between $42,000 And $68,000
Highest paying CityNewark, NJWashington, DC
Highest paying stateNew JerseyNew York
Best paying companyBroadridgeMeta
Best paying industryEnergyGovernment

Differences between accountant-contractor and staff accountant education

There are a few differences between an accountant-contractor and a staff accountant in terms of educational background:

Accountant-ContractorStaff Accountant
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 76%
Most common majorAccountingAccounting
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Accountant-contractor vs staff accountant demographics

Here are the differences between accountant-contractors' and staff accountants' demographics:

Accountant-ContractorStaff Accountant
Average age4444
Gender ratioMale, 43.8% Female, 56.2%Male, 41.6% Female, 58.4%
Race ratioBlack or African American, 8.9% Unknown, 4.0% Hispanic or Latino, 11.2% Asian, 12.1% White, 63.3% American Indian and Alaska Native, 0.5%Black or African American, 8.5% Unknown, 4.0% Hispanic or Latino, 10.8% Asian, 14.4% White, 61.9% American Indian and Alaska Native, 0.5%
LGBT Percentage7%7%

Differences between accountant-contractor and staff accountant duties and responsibilities

Accountant-contractor example responsibilities.

  • Manage and monitor accounting procedures for compliance with Sarbanes-Oxley and coordinate and facilitate external audit requirements.
  • Assist in preparing tax returns and financial statements and record various transactions in QuickBooks
  • Recommend processes and tasks to prepare SOX reviews and questions.
  • Assist CPA with all require tax documents, reports and follow up.
  • Assist in ACH process of setting up new vendor for direct deposit.
  • Consult with CPA on behalf of business presenting all financial materials to prepare for end-of-year taxes.
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Staff accountant example responsibilities.

  • Manage and monitor accounting procedures for compliance with Sarbanes-Oxley and coordinate and facilitate external audit requirements.
  • Contribute revenue accruals using job cost system, fix assets including reclassification, reconciliation and depreciation.
  • Prepare month-end journal entries and assist in compilation of financial statements, reconcile bank statements and general ledgers.
  • Complete audit-quality account reconciliations monthly for balance sheet accounts including the capital projects in progress accounts and miscellaneous revenue accounts.
  • Assume responsibility for cash management encompassing wire and ACH transfers processing, bank activity confirmation, and monthly bank account reconciliations.
  • Handle all A/R and A/P, payroll, change orders, collections, lien placement and release, vendor account management.
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Accountant-contractor vs staff accountant skills

Common accountant-contractor skills
  • Reconciliations, 14%
  • General Ledger Accounts, 9%
  • Payroll Taxes, 5%
  • Balance Sheet Accounts, 5%
  • Account Reconciliations, 5%
  • Purchase Orders, 4%
Common staff accountant skills
  • Reconciliations, 15%
  • Account Reconciliations, 7%
  • GAAP, 6%
  • General Ledger Accounts, 4%
  • External Auditors, 4%
  • Internal Controls, 4%

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