CPA Trendlines

Despite Staffing Crunch, Firms Freeze Pay Raises

line chart — Average hourly earnings of all employees in the accounting profession. Hint: Don’t show this chart to recruits.

Millennials say compensation isn’t the most important thing. Employers say, “Heard.”

By Beth Bellor

Suppose you’re a leader in a field that has fretted for months over staff shortages. Would you put on your thinking cap, plug it in for a while and come up with… frozen pay?

MORE: Tax & Accounting Firms Grow for 9th Straight Month | Tax & Accounting Profession Grows, but Wages Don’t | Tax and Accounting Pay Advancing at 5.9% Pace | Accounting Jobs Up 4% for Year
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Strangely enough, that’s what the latest tax and accounting profession earnings data show. Compared to previous months, the trend is stagnant or even down. The only bright spot was in payroll services staff, which also added bodies – but cut hours.

(How’s that song go? If it weren’t for bad luck?)
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CHARTS & GRAPHS

Tax & Accounting Firms Grow for 9th Straight Month

line graph — Overall accounting profession employment

Bookkeeping is playing the tortoise game.

By Beth Bellor

Bit by bit, the accounting profession is growing. Despite a staffing shortage. Despite an uncertain economy. Despite everything, tax and accounting firms are steadily adding to headcounts.

MORE: Tax & Accounting Profession Grows, but Wages Don’t | Tax and Accounting Pay Advancing at 5.9% Pace | Accounting Jobs Up 4% for Year
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As tax and accounting professionals begin planning for the year ahead, the CPA Trendlines Research team is fielding a new survey to check the pulse of the profession, detect emerging trends, and identify the best success strategies going into 2024.

Join the Survey. Get the Results.
Click here to launch the 10-minute survey.

According to the latest data mined by CPA Trendlines Research, new highs were reached in September in employment overall, staff, CPA firm staff, bookkeeping, women overall and women in CPA firms. Staff also hit a new mark for hourly earnings.

CHARTS & GRAPHS

Tax & Accounting Profession Grows, but Wages Don’t

Total employment at tax, accounting, payroll, bookkeeping and related businesses hits a record high of 1,166,700 jobs.

Tax preparation and payroll services are exceptions.

By Beth Bellor

Are there really staffing shortages? Employment numbers in the accounting profession keep rising.

MORE on STAFFING and COMP: Tax and Accounting Pay Advancing at 5.9% Pace | Bill Penczak: Stop Forcing Smart People to Do Stupid Work | Sandra Wiley: Staffing Problem? Check Your Culture | Firms Rev Up Expansion Plans | Accounting Jobs Up 4% for Year | Research: Accounting Pros Cautiously Optimistic about Generative AI | How Auditors Can Beat AI | How Tax Practitioners Became Cybersecurity Risks | Why the U.S. Must Act Now to Protect Our Online Privacy | Top Tax Vendors Caught Red-Handed Selling Private Taxpayer Data
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Perhaps they could be rising even faster if the right people met the right spots – or the right incentives, according to a new CPA Trendlines analysis.

CHARTS & GRAPHS

Tax and Accounting Pay Advancing at 5.9% Pace

Payroll services hours take some wild swings.

By Beth Bellor

What would help recruit more people to the accounting profession? How about that trusty standby, more money?

Most accountants are bringing home more in hourly earnings, according to the latest available data.

MORE on JOBS: What an A.I.-Powered Workforce Means for Accountants | New Businesses Mean New Business | Accounting Jobs Up 4% for Year |

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For the accounting profession overall, hourly earnings hit a new high at $41.39, up 35 cents or 0.9 percent for the month and $2.32 or 5.9 percent for the year. Staff earnings hit a new top mark at $31.76, up 20 cents or 0.6 percent for the month and $1.64 or 5.4 percent for the year.
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CHARTS & GRAPHS

Accounting Jobs Up 4% for Year

Payroll services up over 7 percent.

By Beth Bellor
CPA Trendlines Research

Employment in the accounting profession continues to climb, according to the most recent federal jobs data. New highs were set in

employment overall and for staff, CPA firm staff, payroll, payroll staff, bookkeeping and women
earnings overall and for staff, and for payroll staff

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Total nonfarm payroll employment rose by 339,000 in May, with the unemployment rate ticking up by 0.3 percentage point to 3.7 percent. The professional and business services sector added 64,000 jobs, similar to April.
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CHARTS & GRAPHS

Tax Pros File 54% of Season’s Returns

Refunds down over 7 percent.

By Beth Bellor
CPA Trendlines Research

The IRS issued its last weekly update of the spring and every figure but one was down for the year.

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The agency received 142.6 million individual income tax returns, down 1.2 percent from the same week the previous year. It processed 140.2 million returns, up 0.5 percent, the only positive note in the report.
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CHARTS & GRAPHS

Pros End Tax Season Filing 53% of Returns

In sheer numbers, they fared the same as last year.

By Beth Bellor
CPA Trendlines Research

The April 18 deadline for individual income tax returns came and went, leaving a scattering of negative figures in its wake. The largest ones had dollar signs attached: average refunds down nearly 9 percent, total refunds down 11 percent.

MORE: Tax Refunds Down 8 Percent | Pros Filing 54% of Individual Tax Returns | Average Tax Refunds Down 10% | Tax Pro E-filings Up 3% | Pros Handle 45% of Income Tax Returns | Only 39% of Tax Returns Filed by Pros | Tax Season Opens with Refunds Up 85%
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The Internal Revenue Service received 137.1 million returns, down 1.3 percent from 2022, according to data released for the week ending April 21. It processed 134.7 million returns, up 0.7 percent – the only positive in our report.
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CHARTS & GRAPHS

Tax Refunds Down 8 Percent

Pros handle 55 percent of e-filings.

By Beth Bellor
CPA Trendlines Research

The Internal Revenue Service has a little less to do than usual.

MORE: Pros Filing 54% of Individual Tax Returns | Average Tax Refunds Down 10% | Tax Pro E-filings Up 3% | Pros Handle 45% of Income Tax Returns | IRS Processing Returns as Fast as It Gets Them | Only 39% of Tax Returns Filed by Pros | Tax Season Opens with Refunds Up 85%
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With four days left in the season – as of April 14, the latest data available – the agency has received 117.3 million individual income tax returns, down 4.3 percent from the same period in 2022. It has processed116.2 million returns, down 2.2 percent.
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Here’s what you’re looking for: Beth Bellor

As tax and accounting professionals begin planning for the year ahead, the CPA Trendlines Research team is fielding a new survey to check the pulse of the profession, detect emerging trends, and identify the best success strategies going into 2024.