Accountant Pay Climbs Sharply

"Salaries offered to U.S. accountants and auditors last year climbed at their quickest pace in recent years, but observers say higher pay alone may not be enough to fix a national shortage of accountants.

Fewer people are pursuing degrees in accounting and starting new jobs in this area, resulting in more open positions for related roles and searches that take longer to complete. Accounting and auditing jobs have long been viewed by people in the profession as underpaid, undervalued and less dynamic than positions in tech, investment banking and private equity.

On average, U.S. accountants and auditors' offered starting salaries for entry-level positions rose 13% to nearly $61,000 in 2022, compared with increases of 4% in 2021 and 2% in 2020, according to a review of job postings from Revelio Labs Inc., a provider of workplace data. Pay across five seniority levels, from entry level through vice presidents, is also up. These average salaries climbed by 12% to nearly $87,000 in 2022, Revelio Labs data showed.

The Center for Audit Quality, one of several professional organizations stepping up their outreach, last year launched an effort to increase awareness about accounting opportunities among high-school and college students. The talent pipeline shortage across the accounting profession is a multifaceted issue, said Liz Barentzen, vice president of operations and talent initiatives at the CAQ.

Some members of the profession don't see the recent salary raises as enough to boost the ranks of entrants. The profession also carries a key barrier to entry -- 150 college credit hours required to become a certified public accountant.

To build enthusiasm around the profession, firms, recruiters and professional organizations need to show accounting graduates that there is a significant technology bent to the work, said Jim Brady, a former Deloitte & Touche chief talent officer and chief operating officer at Grant Thornton.

"I just don't think giving a ton of 25% pay raises across the board is going to reverse what's been building over the last two decades," he said." [1]

1. Banking & Finance: Accountant Pay Climbs Sharply
Maurer, Mark.  Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 30 Mar 2023: B.10.