Accounting salaries are on the rise

Heightened competition for accounting and finance professionals will lead to increases in base compensation this year, maintains the 2006 Salary Guide from Robert Half International Inc., Menlo Park, Calif., a specialized consulting and staffing services firm. Starting salaries in accounting and finance are projected to rise an average of 3.1% in 2006. Research shows that starting salaries for personnel involved with corporate governance initiatives--such as internal and information technology (IT) auditors as well as public accountants--are expected to see the strongest growth.

"Organizations are actively recruiting accounting and finance staff to support business expansion initiatives and corporate governance efforts," emphasizes Max Messmer, chairman and CEO of Robert Half. "To attract and retain skilled financial professionals, firms are reassessing their hiring practices and enhancing compensation packages for current staff."

IT auditors can look for the largest percentage increase in base compensation of any position in 2006, with average starting salaries forecast to rise 11.2%, to between $67,000-$94,250 annually Entry-level internal auditors at small companies (up to $25,000,000 in sales) will see average starting salaries increase nine percent, to between $35,500$43,250 per year.

Public accounting firms also are raising salaries across the board as they compete with companies in private industry for top accounting staff. Average starting salaries for entry-level accounting professionals at small firms are projected to climb 6.5% ($35,500-$42,500). Senior managers/directors at large firms ($250,000,000-plus in sales) can expect a 4.2% increase ($85,500$130,000). Senior accountants at midsize firms ($25-250,000,000 in sales) should see base compensation rise 8.8% ($50,000-$70,000).

Other key findings include: Tax managers at midsize companies should expect average starting salaries to climb 4.6% ($57,750-$74,000). Bookkeepers can anticipate a 6.8% rise in wages in the year ahead. Mutual fund accountants should count on a 4.7% gain in base compensation ($38,000-$51,250). Accounts receivable/accounts payable managers at small companies will experience a climb of 5.2% ($33,750-$41,500).

Nationally, demand for accounting and finance professionals is expected to be particularly strong in the manufacturing, real estate, and construction industries.

COPYRIGHT 2006 Society for the Advancement of Education
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