AICPA

Promising Job Market for New Accountants

By Robert Half International

College graduates embarking on a career in accounting and finance in the year ahead likely will be pleasantly surprised by their prospects. Robert Half’s 2008 Salary Guide reports that public accounting firms, private industry and not-for-profit organizations throughout the United States are all eager to hire financial talent, and are planning to grow their staff in a variety of areas vital to business operations, from payroll to credit and collections to tax services.

According to the U.S. Department of Labor’s Bureau of Labor Statistics’ (BLS) 2008 edition of its Occupational Outlook Handbook, employment of accountants and auditors is expected to grow by 18 percent by 2016, which is faster than average for all occupations they track. Robert Half’s Salary Guide reports that business growth and regulatory demands are causing many organizations to increase staff levels in their accounting and finance departments.

However, the lack of highly skilled candidates available for hire remains the greatest obstacle for companies striving to meet financial hiring goals, according to the Salary Guide. So, even though many employers are specifically looking for veteran practitioners to fill critical roles – particularly at the senior and management levels – they also are willing to bring less- experienced talent on board, and groom them to become their leaders of tomorrow. In fact, the National Association of Colleges and Employers (NACE) reports that businesses nationwide – nearly 58 percent – are planning to hire more new college graduates in 2008 as a way to keep up with demand for new talent.

Fast-growing industries in hiring mode

While hiring for accounting and finance professionals is expected to be strong nationwide at both corporate and private accounting firms during 2008, several industries are expected to be particularly quick to snap up talent. The Robert Half Salary Guide shows that the healthcare industry will be very active in almost every region of the United States.  The financial services industry will be searching for candidates in markets from New England to the Pacific. And manufacturing firms are looking for accounting professionals nationwide, particularly in the Pacific region.

In almost every U.S. market, businesses are seeking staff accountants to perform core accounting duties, including maintaining the general ledger system. Also on many employers’ wish lists are cost accountants, who at the entry level are expected to assist with tasks such as preparing all inventory-related journal entries at month-end. And employers in markets from coast to coast want more financial analysts; the Salary Guide reports that demand for this expertise by many organizations is related to business growth and the need to manage it effectively.

Entry-level pay rising for some roles

To underscore the fact many employers are willing to invest in less-experienced professionals, Robert Half’s Salary Guide has identified several entry-level positions – which require up to 1 year of experience – that are likely to see a jump in base salary of more than 5 percent during 2008. These jobs include:

• Financial, budget, treasury or cost analysts at large corporate accounting organizations (more than $250 million in sales) can expect to earn a starting salary between $38,250 and $47,500 – an increase of 6.9 percent from 2007. For this position, entry-level professionals need strong technology skills and are expected to help with projects such as financial planning and modeling.
• Tax accountants working at large organizations are likely to be paid between $38,250 and $46,250 to start, which is 5 percent more than in 2007. Entry-level tax accountants are expected to assist with tasks such as tax preparation and research; employers also prefer individuals who possess strong research and communication skills.
• Audit, tax and management services professionals hired to work at small public accounting firms (up to $25 million in sales) will earn a base salary ranging from $40,000 to $47,250, an increase of 6.4 percent. Helping more senior staff with audits and preparing tax returns are typical responsibilities for those just beginning their career.

For all positions listed above, individuals need a bachelor’s degree in accounting and finance. Those who have professional certifications – particularly, the Certified Public Accountant (CPA) – or relevant graduate degrees, such as a master of business administration (MBA), can expect to earn up to 10 percent more in salary, even at the entry level, according to Robert Half’s 2008 Salary Guide. In fact, in today’s competitive hiring environment, if a job candidate is equipped with just the right skill set, education and credentials, not only can that individual expect to receive an offer of a higher salary from a potential employer, but also, other incentives. Signing bonuses, equity incentives and tuition reimbursement are all popular recruitment tools used by many of today’s businesses.

Meeting employers’ expectations

Although many employers have a significant need for financial talent and are more willing than ever to invest in less experienced professionals, this does not mean they are easing their standards. Most practitioners likely will find that they must meet extremely high expectations and take on more responsibilities than accountants of the past. This is because companies striving to compete in today’s global business environment need financial professionals who possess a wide set of skills beyond functional knowledge of accounting. These talents include an aptitude for technology, strong interpersonal skills, critical thinking abilities and cultural literacy.
Source: Robert Half International