Accountants Enjoying Compensation Boost
Compensation for accounting professionals is on the rise, according to new research. The increase is due, in part, to surging demand. The need for experienced accountants has skyrocketed thanks to an increase in corporate governance regulations. In the current environment of increased scrutiny and risk, companies must be prepared to support tax provision computations, positions, tax reserves, and disclosures. The volume and complexity of financial and non-financial information will continue to expand along with the need for accountants and auditors to interpret and analyze the data and participate in the decision-making process, according to the American Institute of Certified Public Accountants (AICPA). As a result, greater resource demands are being placed on already strained tax departments. Executive search firm, A.E. Feldman, says accounting jobs are opening up and senior accountants are among the professionals in greatest demand.
The Sarbanes-Oxley Act of 2002 has significantly increased the demand for accounting services and placed tremendous pressure on firms to recruit the best talent. In fact, the number of accounting jobs nationwide is expected to grow faster than the average expected growth for all jobs through 2014, according to the U.S. Department of Labor.
Moreover, a recent survey conducted by the AICPA finds that hiring qualified professionals remains the most critical concern for U.S. firms. Complicating matters, the AICPA says over the next 15 years, about 75% of the nation’s CPAs will be approaching retirement. In addition, the group says that demographic changes will affect the talent pool. As a result, experience shortages in many areas are likely to emerge. Many in the profession are concerned about its ability to replace those retirees while meeting an already rising demand for CPAs. The study contends that as a firm’s size increases, retention also becomes a key issue.
So, how are firms dealing with these issues? To start, firms are luring talent with enhanced compensation packages. According to the AICPA, salaries for accountants are increasing. A.E. Feldman says there are tremendous opportunities for accountants with roughly four to eight years of experience. These candidates are at a premium among the Big Four and public accounting firms. Specific attributes firms are seeking include advanced spreadsheet skills, enterprise resource planning systems knowledge, systems documentation and flowcharting experience, and database applications expertise, according to the AICPA.
Additionally, AICPA research shows that companies and firms are looking for professionals who can fulfill the role of strategic business advisor - people who can anticipate emerging needs and find creative solutions to business problems.
Facing increasing competition, the largest accounting firms are also expanding their traditional areas of specialization to become full-service providers and reorganizing themselves along industry lines. Thus, candidates with industry expertise, including banking, insurance, entertainment, telecommunications, healthcare and real estate, are in a position to benefit. Other significant specialty niches include personal financial planning, business valuation services, litigation support, process improvement, forensic accounting and risk management. As a result, in addition to the certified public accountant (CPA) designation, other desirable accreditations include the certified internal auditor (CIA), certified management accountant (CMA) and certified fraud examiner (CFE).
A.E. Feldman also reports that CPAs with experience in working with SEC-registrants and IFRS (International Financial Reporting Standards), or international tax experience have many more opportunities now due to the globalization of the economy.
