We’re a bit behind combing through the National Pipeline Advisory Group (NPAG) Accounting Talent Strategy Report released a couple days ago (it’s almost 100 pages, that’s a lot of reading for the burnouts on our staff) so while we continue to do that with the finest of fine-toothed combs, check out this chart from page 59:
Immediately following this chart the report says:
If 2022 starting salaries were the primary determinant for business students choosing a major, accounting would be their last choice among this slate of options.
With the proliferation of salary information and ChatGPT at their fingertips, students and parents are savvy enough to understand and consider this as a factor. In a recent Journal of Accountancy interview with academic leaders, Professor Nancy Bagranoff of the University of Richmond said, “One change we have noticed is increased salary transparency. Students make use of online tools to compare salaries and are more aggressive in negotiating terms.” As these tools and pay transparency become more common, new recruits and experienced accountants are expecting higher salaries, and employers must respond.
Quote from National Pipeline Advisory Group’s Accounting Talent Strategy Report, page 59
I’m tired of hearing about the accounting shortage while salaries stagnate and don’t increase in proportion to all of the accounting shortage noise.
Meanwhile, everything gets outsourced to India.
1) At my firm we do not outsource, it is against our policy and values. Hopefully our clients appreciate that their files and account numbers are not sent overseas.
2) It takes at least 2 years of firm-specific training beyond the bachelors degree for a new hire to be profitable. Until then we are losing money but hope they stick around and drink the kool-aid.
Don’t most accounting graduates have masters’ degrees? So showing those who enter the workforce with only a bachelor’s degree are the lowly grads who are ineligible to sit for the CPA exam (and are not sought after).
How much value is this salary chart?
Most accountants have a Bachelor’s. This is from a quick google search:
Accountant Degree Percentages
Bachelor’s 71%
Associate 12%
Master’s 12%
High School Diploma 2%
I made less than all my engineering and comsci friends for about 3 years, then it flipped. I now (14 years out) make 2x-4x them, depending on the person. Anyone who is dissuaded from 30 years of 2x+ better pay because the first 3 years are 0.8x should reevaluate their perspective.
What is your role/title? Public accounting?
But are you the exception to the typical outcome in a career in accounting? Or the average outcome? Or the median outcome? etc….
Likewise are your friends in engineering below or above average in their career path?