Accounting
The 2024 Accounting Today Salary Survey: Partners pinching pennies
Compensation for early-career accountants is a key factor in making the profession more attractive for young people. Starting salaries have lagged behind that of neighboring professions and industries; students can graduate into higher-paying jobs in finance or technology with the same level of education or less than is required for accountants.
And with the ongoing labor shortage — fewer people studying accounting, fewer completing 150 credit hours, fewer achieving CPA licensure, and even fewer staying in the profession until they make partner — accounting firms have no time to waste in raising starting salaries.
Accounting Today and its parent company Arizent conducted our inaugural salary survey in May 2024, collecting over 560 responses from accountants from firms of all sizes regarding their salaries, benefits and career trajectories. The survey found that the median base salary for a staff accountant nationwide is $65,000. For comparison, in Pennsylvania, entry-level CPAs earn $68,000, versus entry-level finance consultants at $71,000, management consultants at $87,000 and supply chain managers at $91,000, according to a recent talent retention report by the Pennsylvania Institute of CPAs. Meanwhile, graduates who majored in engineering, computer science and math are all expected to earn starting salaries above $70,000, according to nationwide projections from the National Association of Colleges and Employees ($76,736, $74,778 and $71,076 respectively).
What is keeping firms from raising starting salaries? The answer involves a complex set of factors, but the first reason is straightforward, if a bit antiquated: This is the way it’s always been done.
“There’s a mindset that this is an apprentice business. There’s a huge investment that firms make in people in the early years and as they get skilled they earn more,” said Jennifer Wilson, partner and co-founder at ConvergenceCoaching. “But that model is a mindset that’s no longer valid because most young people out of school expect that they’re going to have big investment by their employers, regardless of their chosen profession, and they’re not willing to pay dues by making less and learning more. They’re figuring, ‘I’m going to get that anywhere.'”
(See the data from
The U.S. Bureau of Labor Statistics projects that Generation Z (those younger than age 28), will make up about 30% of the U.S. workforce by 2030. This cohort is already defining how their work expectations differ from the generations that preceded them, including having little desire to spend their entire lives at one company, or even in one industry, which is antithetical to the traditional career path for an accountant, where it was considered normal to progress from intern to partner all at the same firm. In that model, low starting salaries were accepted because young accountants expected to make it up once they made partner.
Younger generations aren’t sure they want to stay at the same firm that long, however, and with 47% of respondents to Accounting Today’s survey saying that it takes between 10 and 20 years to make partner at their firm, they may be less willing to forego current compensation for money that may never materialize in a role they may not even be interested in taking on.
“That idea of delayed gratification is an old-fashioned idea, and it still lives inside our profession,” Wilson said.
The second contributor to low salaries is the interests of aging partners nearing retirement, Wilson said: “The average partner comp has continued to increase over time when starting salaries have not, and that is a lack of redistribution of that wealth. I would say it’s because partners feel like, ‘I paid my dues and I deserve this.'”
Survey data reflected a median base partner salary of $125,000 for firms with fewer than 10 employees, and $205,000 for those at firms with more than 10 employees. These numbers likely skew low, as 53% of respondents reported working at firms with less than $5 million in net revenue. For this reason, partner data for midsized and big firms could not be broken out in detail with a high enough level of statistical significance. However, the data indicates the top 5% of partners at firms with fewer than 10 employees earned salaries of $250,000, and the top 5% at firms with more than 10 employees earned $700,000. (Partners at the Big Four and other billion-dollar firms can make far more than that, of course, but relatively few participated, and were treated as outliers.)
As one survey respondent, a chief operating officer at a midsized firm, put it: “Look out for yourself. Partners are greedy. Public accounting is a giant pyramid scheme.”
But accountants are not compensation experts, and they do not invest in HR expertise as they should, Wilson said. The common objection to increasing starting salaries is the assumption that if you raise starting salaries, then you have to raise everybody’s salary, and that would cost a fortune. The solution is to make the largest adjustment in the lowest salary band (staff), and then make smaller adjustments in the subsequent bands (senior, manager, etc.) to lessen the steep climb to partner salaries.
The data also reveals that an individual’s number of years of experience does not have an appreciable impact on aggregate salary ranges for each job level. The median salary for staff with less than 10 years experience was $65,000, and $71,000 for staff with more than 10 years. Similarly, seniors with less than 10 years showed a median salary of $87,000, and only $88,000 for seniors with more than 10 years.
“Tenure means nothing anymore,” said Sandra Wiley, shareholder and president at Boomer Consulting. “The number of years you’ve been sitting in the seat at whatever firm you’re at has a lot less to do with your salary than what you bring to the table, how fast you learn it, and how fast you apply it.”
The consequences
The result is poor work-life balance in exchange for low salaries for young accountants. For some, the promise of a greater salary down the road isn’t enough to counterbalance working 80 hours a week during tax season now. “You’re going to wish you were paid hourly during busy season,” one senior tax associate at a large firm said.
“I wish I knew that public accounting firms don’t value their employees the way that they say they do. What is said and what is done does not match,” a tax accountant at a midsized firm said. “Low pay, long hours, grueling work, no internal onboarding or training to support staff. It’s a sink-or-swim mentality.”
Raises typically come through promotions and performance evaluation. Though 74% of respondents say they know what qualifications they need to be promoted, roughly one-third of staff, seniors and managers say they feel the need to jump to another job in order to make a meaningful increase in salary. In the same vein, three-quarters of respondents say they’ve worked at another firm before joining their current firm.
“If making as much money as possible is the goal, be prepared to jump firms every few years,” a tax manager at a small firm said. “Many firms do not reward long-term loyalty with appropriate salary increases after two to three years.”
It’s an employees’ market now, Wiley said. “Senior leadership has figured out, ‘If you don’t give me what I want here, I can go tomorrow and find the job that I want out there.'”
But KPMG’s vice chair of talent and culture, Sandy Torchia, doesn’t see this trend as entirely negative. While there are opportunities for moving around functions, industries and geographies within a Big Four firm, “Not everyone’s going to stay at KPMG for their entire career, but building future leaders, giving them the experiences and credentials to go and be successful at our clients, in our communities, etc., is a really important part of the ecosystem.”
The solution
Higher starting salaries are key to making the accounting profession more attractive to young people, but the solution is multifaceted.
It starts with salary transparency, both for lower-level salaries and partner salaries. KPMG is taking steps to do just that: “When we’re communicating compensation to our employees at the beginning of the fiscal year, we communicate to them pay ranges, and the pay ranges are for their base salary as well as for variable compensation,” Torchia said. “We want to make sure that they understand not only the pay ranges, but where they fall within that pay range, so that they can see what the opportunity is for growth within their current role.”
The next step is actually raising starting salaries: “Given the demographic tendencies of the people entering the workforce now, they’re not in a position where they feel like they can defer those big earnings that far out into their career,” said Lisa Simpson, vice chair of firm services at the American Institute of CPAs. “So are there ways to push it down a little earlier and make the jumps in between each level less dramatic?”
The time it takes to make partner will inevitably need to shorten too. “People are not going to wait that long,” Wiley said. “If we are true to our word that entry-level staff positions can be outsourced or automated, that means we have to start people at a different level to begin with.”
This means firms will have to start teaching and training differently. “It requires more handholding on the front end, but they’re able to get to the higher-level work faster. Therefore, the billing that you can get them to quicker is better,” Wiley said.
‘Culture is greater than salary’
The consequence of pushing off salary increases is the risk of talent exiting the profession entirely, which makes retention all the more important. The pipeline problem isn’t going away. Firms need to be competing not only on compensation but benefits and culture, too.
“Culture is greater than salary,” a manager at a large firm said. “I could jump somewhere for maybe $10,000 to $20,000 more, but I do not think I can replicate the culture of my firm. A lot of people I talk with have moved jobs for more money and almost immediately regretted it due to the work environment. I would rather take a steady, reasonable paycheck, with job security and ethical bosses, than move to a higher paying job where I’m constantly fearing retaliation or being fired.”
While noting it is difficult to make blanket generalizations for the entire profession, “I think all firms have different levers they can push if they really focus on managing that workload,” the AICPA’s Simpson said.
Small firms need to double down on strategy, carefully considering the services they’re offering, whom they’re offering them to, and how they’re delivering them. Simpson specifically said that large firms need to implement offshoring strategies and capitalize on technology. All firms can be streamlining their processes to make sure they’re pushing work through their systems effectively, and they should make sure they’re billing for their value and to keep up with cost structures — accounting is a very loyal profession and firms sometimes struggle to raise rates despite increasing costs, Simpson said.
For instance, the slam of busy season can be mitigated, she explained: “We can control that tax season by managing our client load, by managing our client expectations, and putting in processes and key metrics and keep the workflow moving throughout the year, rather than just in these crunch periods, April 15 and October 15.”
The accounting profession is an excellent vehicle for wealth building, with large salary trajectories in store at the partner, owner and managing partner levels. But the profession needs to raise starting salaries to attract young talent, be transparent about their earning potential in each role, and meet their demands in order to retain that talent.
“Another way to think about this is the word ‘stewardship,'” Wilson said. “‘I should be a steward of my firm and careful to make sure that I am investing in it as much as I am taking out of it.’ I do think sometimes we lose sight of our stewardship.”
Cruise operators may yet avoid paying more U.S. corporate taxes despite threats from U.S. Commerce Secretary Howard Lutnick to close favorable loopholes.
Lutnick’s comments on Fox News Wednesday that U.S.-based cruise companies should be paying taxes even on ships registered abroad sent shares lower, though analysts indicated the worry may be overblown.
“We would note this is probably the 10th time in the last 15 years we have seen a politician (or other DC bureaucrat) talk about changing the tax structure of the cruise industry,” Stifel Managing Director Steven Wieczynski wrote in a note to clients. “Each time it was presented, it didn’t get very far.”
Industry shares fell sharply Thursday. Royal Caribbean Cruises Ltd. closed 7.6% lower, the largest drop since September 2022. Peers Carnival Corp. and Norwegian Cruise Line Holdings dropped by at least 4.9%.
All three continued slumping Friday, trading lower by around 1% each.
Cruise companies often operate their ships in international waters and can register those vessels in tax haven countries to avoid some U.S. corporate levies. It’s exactly those sorts of practices with which Lutnick has taken issue.
“You ever see a cruise ship with an American flag on the back?,” Lutnick said during the interview which aired Wednesday evening. “They have flags like Liberia or Panama. None of them pay taxes.”
“This is going to end under Donald Trump and those taxes are going to be paid.” He also called out foreign alcohol producers and the wider cargo shipping industry.
The vessels are embedded in international laws and treaties governing the wider maritime trades, including cargo shipping. Targeting cruise ships would require significant changes to those rule books to collect dues from the pleasure crafts, analysts noted. The cruise industry represents
They also pay significant port fees and could relocate abroad to avoid new additional taxes, according to Wieczynski, who sees the selloff as a buying opportunity.
“Cruise lines pay substantial taxes and fees in the U.S. — to the tune of nearly $2.5 billion, which represents 65% of the total taxes cruise lines pay worldwide, even though only a very small percentage of operations occur in U.S. waters,” CLIA said in an emailed statement.
Should increased taxes come to pass, the maximum impact to profits would be 21% on US earnings, Bernstein senior analyst Richard Clarke wrote in a note. That hit wouldn’t be enough to change their product offerings, though it may discourage future investment. Recently, U.S. cruise companies have
Cruise lines already employ tax mitigation teams that would work to counteract attempts by the U.S. to collect taxes on revenue generated in international waters, wrote Sharon Zackfia, a partner with William Blair.
Royal Caribbean did not respond to requests to comment. Carnival and Norwegian directed Bloomberg News to CLIA’s statement.
Artificial intelligence took the business world by storm in 2024. Content creation companies received powerful new AI-powered tools, allowing them to crank out high-quality images with simple prompts. AI also helped cybersecurity companies filter email for phishing attempts. Any company engaging in online meetings received an ever-ready assistant eager to show up, take notes and highlight the most important talking points.
These and countless other AI-driven tools that emerged during the past year are boosting efficiency in virtually every industry by automating the tasks that most often bog down business processes. Essentially, AI takes on the business world’s day-to-day dirty work, delivering with more accuracy and speed than human workers are capable of providing.
For accounting, AI couldn’t have come at a better time.
As companies struggle to do more with less, AI offers solutions that promise to reshape the accounting world. However, putting AI to work also forces companies to accept some new risks.
“Bias” has become a huge buzzword in the AI arena, forcing companies to consider how the automation tools they bring in to help with processing data may introduce some questionable or even dangerous ideas. There are also ethical issues associated with next-level AI-powered data processing that have some concerned that achieving AI-assisted business efficiency also means risking
To make AI worthwhile as an accounting tool, companies must find ways to balance gains in efficiency with the ethical risks it presents. The following explores the growing role AI can play in business accounting while also pointing out some of the downsides that should be carefully considered.
AI upside: Increased accuracy and efficiency
Accounting isn’t accounting if it isn’t accurate. Miskeyed amounts or misplaced decimal points aren’t acceptable, regardless of the company’s size or the business it is doing. When the numbers are wrong, the decision-making that relies on those numbers suffers.
Consequently, manual accounting typically moves slowly to avoid errors. Business leaders have learned to wait on financial reporting prepared by hand. They’ve also learned that because of processing delays, they may not have the numbers they need to take advantage of unexpected opportunities.
AI changes the equation by improving the speed and accuracy of reporting. AI-powered data entry automatically extracts numbers from invoices and other financial statements, eliminating the need for manual entry and the mistakes that can occur when an accountant is distracted, tired or just having an off day. AI can also detect errors or inconsistencies in incoming documents by comparing invoices and other documents to previous records, providing a second set of eyes for accounts as they ensure companies aren’t being overbilled or under-compensated.
When it comes to increasing the pace of accounting, AI’s capabilities are truly astonishing. As
AI accounting gives business leaders accurate financial data in real time, meaning they have relevant and reliable accounting intel when they need it rather than requiring them to wait until the end of the month to have a report on where their cash flow stands. It also has the potential to give a glimpse into the future by drawing upon historical data to drive predictive analytics. AI can look at what has been unfolding in a business and its industry to plot the path forward that makes the most financial sense. It’s not exactly a crystal ball, but it’s as close as most businesses should expect to get.
AI upside: More time for high-level engagement
As AI began to make inroads in the business world,
The manual work typical of conventional accounting is tedious, tiresome and time-consuming. Doing it well eats up much of the energy accountants could otherwise apply to higher-level activities. By using AI automation for those tasks, accountants gain the resources needed for high-level engagement.
Accountants who partner with AI gain the capacity to shift their role from bookkeeper to financial advisor. Rather than focusing all of their energy on preparing reports, they are freed up to interpret the reports. Delegating data entry and other day-to-day tasks to AI allows accountants to become strategic partners with the businesses they serve, whether as in-house employees or external advisors.
Financial forecasting becomes much more doable when AI is in play. Accountants can develop comprehensive financial models that forecast future revenue and expenses. They can also assess investment opportunities, such as determining the viability of mergers and acquisitions, and help with risk management and mitigation.
Tax planning and optimization will also become more manageable once AI automations have been added to the mix. Automating data extraction and categorization streamlines the process of classifying expenses for tax purposes and identifying expenses that are eligible for deductions. AI automation can also be used for tax form completion, adding speed and a higher level of accuracy to a process that very few accountants look forward to completing manually.
AI downside: Higher data security risks
Accountants are well aware of the dangers of data breaches. Allowing financial data to fall into unauthorized hands can lead to financial loss, operational disruption, reputational damage and regulatory consequences. Shifting to AI accounting can potentially increase the risk of data breaches.
Changing to AI accounting often means concentrating financial and other sensitive data and moving it to interconnected networks. Concentrating data creates a target that is more desirable to bad actors. Shifting it to the cloud or other interconnected networks creates a larger attack surface. Both factors create situations in which higher levels of data security are definitely needed.
Addressing the heightened threat of cyberattacks requires a combination of tech tools and human sensibilities. To keep accounting data safe, encryption, multifactor authentication, and regular testing and update protocols should be used. Training should also help accounting teams understand what an attack looks like and how to respond if they sense one is being carried out.
AI downside: Less process customization
Developing the types of platforms that can safely and reliably drive AI automations is not an easy — nor cheap — undertaking. Consequently, many companies choose the economy of “off-the-shelf” platforms. However, opting for a standardized platform could mean closing the door on customized financial workflows a company has developed.
For example, an off-the-shelf platform may not have the option of accommodating the accounting rules of highly specialized industries. It may have a predefined chart of accounts structure that doesn’t fit the structure a company has traditionally used. It also may be limited in the formats that can be used for financial reporting, which could require business leaders to make peace with reports that don’t fit their personal tastes.
To avoid big problems that can surface after shifting to off-the-shelf solutions, companies should make sure to take their time and seek software that can scale with their plans for growth. Like any other technological innovation, AI is a tool meant to support and not supplant a company’s processes. The process of selecting an AI platform to improve accounting efficiency begins with mapping out a company’s unique process and identifying where AI can boost efficiency. If the platform you are considering can’t deliver, keep looking.
AI best practice: Take it slow and learn as you go
The biggest temptation for companies as they begin to embrace AI will likely be doing too much too fast and with too little oversight. Artificial intelligence is a remarkable tech tool, but still in its infancy. Taking advantage of its capabilities also requires managing some risks.
For example, AI has what some experts describe as an “explainability” problem. Developers know what AI can do but don’t always know how it does it. Companies that feel compelled to provide their clients or stakeholders with a solid explanation of the process behind their AI automations may be limited in how they can put AI to work.
Now is the time to begin integrating AI with your company’s accounting efforts, but take it slow and learn as you go. A solid best practice is to explore what is available, experiment with how it can help your business, and expect to make many adjustments before you arrive at an optimal process. Your accounting efforts will serve you best when they combine human and artificial intelligence.
Ascend, a private-equity backed accounting firm, added a vice president of partnerships to its leadership team.
Maureen Churgovich Dillmore will oversee the expansion of Ascend’s growth platform for regional accounting firms into new U.S. markets, effective Feb. 17. She was previously executive director of the Americas at Prime Global. Prior, she was executive director at DFK International/USA.
“I have dedicated a large part of my career to supporting firms that want to remain independent. The dynamics of achieving success in this area are evolving rapidly, and the Ascend model was created so that firm identity would not be at odds with accessing the community and resources needed to prosper. I am genuinely impressed by Ascend’s ability to assist mid-sized firms in making the necessary strides to stay relevant, sustain growth, and provide their staff and clients with top-tier shared services—all while preserving their unique brand and culture,” Churgovich Dillmore said in a statement.
Ascend has added 14 partner firms across 11 states since the company launched in January 2023.
“So much of association work is theoretical, advising member firms on best practices, and you don’t get to see the end game. What excites me about being on the Ascend team is the opportunity to be a force behind the change, to help enact the change and see where and how it comes in,” Churgovich Dillmore added.
“Maureen’s decision to join Ascend is rooted in her desire to serve the profession in a way that maximizes her impact. We are all excited to welcome someone into our Company who has been an advisor and friend to mid-sized CPA firms for over a decade, and it is all the more rewarding when you realize that the community and resources we are bringing to life will allow Maureen to have conversations with firms that she’s never had before. Her curiosity, commitment, and deep care for others are going to stand out in this role,” Nishaad (Nish) Ruparel, president of Ascend, said in a statement.
Ascend is backed by private equity firm Alpine Investors and works with regional accounting firms with between $15 and $50 million in revenue. It ranked No. 59 on Accounting Today‘s
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