A new salary survey of management accountants isn’t bad news. but it’s not great news either…
2011 finishes at new high. Average hourly earnings across all employees in the accounting and bookkeeping slipped slightly in the latest month, but rang in a solid gain year to year. With more than 970,000 workers, the Bureau of Labor Statistics calculates that workers earned $27.10 per hour in December, the latest month available, down from $27.10 in November, and averaging $26.51 for the year. The $26.51 rate for 2011 represents a 35-cent advance from 2010 and $2.68 more than in 2007, the first full year in the books
Now running at new high. Hourly earnings at CPA firms are running at an all-time high, according to new data available to CPA Trendlines. On average, earnings reached $31.20 per hour in 2011, up about 3.2%, for all employees. For just non-supervisory employees, wages gained 21 cents, reaching $24.20. In the last five years, earnings for management-level employees have risen 10.1%, while wages for all employees advanced 9.1%.
What recession? More accountants with jobs … ever. by Rick Telberg In the same jobs report that drove the NASDAQ to an 11-year peak, the accounting and bookkeeping sector recorded more people employed in the industry than ever before.
Accounting firms hire the most, pay less. The average salary for accounting majors is averaging up 3.7 percent to $50,500, according to a new survey of college graduates and the employers who hired them.
Defying national trends, accounting industry expands by 2,200 jobs. Total employment in the accounting and bookkeeping sector grew by 2,200 positions in June (preliminary, seasonally-adjusted), to 933,200, the fourth straight month of gains and the highest headcount since 944,600 in December 2008, according to new government data. The surge is being fueled by big gains in tax prep shops and in payroll services. CPA firms slimmed down after tax season, as usual, but headcounts are still running higher than a year ago.
Stuck at about $128,000 in total comp. Pay for finance and accounting executives is remaining essentially flat for the third year in a row, according to a survey by the Institute of Management Accountants of its members. The average salary increased 3.1% to $109,265 and total compensation increased 4.2% $128,486. But the IMA said “neither increase is statistically significant.” Unlike earlier years, total compensation in the latest year rose faster than base salaries. The IMA said more finance executives received raises this year, but the average amount of the raise has remained flat.
Companies increasingly tie pay to non-financial targets. Pay for CFOs is set to rebound this year after two years of declines, according to a new AICPA member survey. Predicting “a substantial improvement in 2011 at both private and public companies,” the AICPA survey says bonus-driven compensation should be buoyed this year by rapidly improving corporate performance.
Cash bonuses lead the way, up 24% Average compensation for chief financial officers at S&P 500 companies jumped 19% to $2.9 million last year, driven by rebounding profits and stock prices, according to a Wall Street Journal survey. While the median salary was little changed from a year earlier at $543,500, stock awards and bonuses rose sharply and accounted for most of the comp package. Median compensation for finance chiefs is running at about about one-third the median pay for CEOs at the same companies. CEO compensation rose 24% from a year earlier, after falling 5% in 2009 from 2008. CFO compensation increased slightly in 2009 from a year earlier. But last year, the median value of option awards to [...]
It depends… Top billing rates average $319 for partners at firms grossing over $10 million a year, according to the latest AICPA/PCPS MAP survey, down to $115 per hour for partners at firms grossing les than $200,000 a year. The same spread holds through all sizes for firms and all ranks of employee. But does size equal quality? The lockstep pattern of pricing based on rank and size suggests the profession still has a long way to go bury the billable hour and embrace intelligent pricing strategies. The same study shows net remaining per owner in 2010 averaged $273,140, up from $245,103 in 2008. On the other hand, fees per partner advanced, from $659,375 in 2008 to $798,951 in 2010, [...]
But corporate employers raise starting pay. While most new college graduates are just happy to get a job this Spring, they’re probably happier going to work in business and industry because that’s where the money is. Starting salaries in public accounting are sinking 6.4% from last year to an average $46,323 this year, according to the National Association of Colleges and Employers. But starting salaries in corporate accounting are surging 5.2%, to $49,732. In auditing, CPA firms are paying $47,889, down 5.1%. And business and industry is paying $48,721, up 3.2%.
But they bill for it too. The best firms, according to INSIDE Public Accounting, start paying more from the first day and from the bottom up. For instance, IPA’s Best of the Best pay new graduates about $55,000, compared to $50,000 at their competitors — a 10% advantage that generally carries through every job level.
Employers should “focus on the areas which will drive job satisfaction to create a happier environment.”
Technology industry hiring and finance salaries on the mend. via BDO Nearly half, or 46% of top U.S. technology companies — an important bellweather for the U.S. and the accounting profession — plan to increase employee headcount this year, marking a significant sign of confidence in the sector, according to BDO USA LLP. Just 7 percent expect headcount to decrease.
After 0.5% in 2010. Despite what the economists say, a return to “healthy” growth rates and profit increases for accounting firms is “nowhere in sight,” according to Marc Rosenberg of The Rosenberg Associates. Based on a nationwide survey of 49 managing partners at “successful, mid-sized firms,” Rosenberg tells CPA Leadership Forum Report: