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Salary hikes for new and old accountants. By Dan Martin

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14th Sep 2006
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Accountancy firms opening new specialist service departments mean newly and past qualified accountants can expect to earn more in 2006 than their 2005 counterparts, new research reveals.

According to financial recruitment specialists ECHM, salaries are increasing due to a rising shortage of candidates and high levels of demand from public practice firms looking to support the expansion of services in areas such as risk management and management consultancy.

As well as newly qualified accountants benefiting from the trend, older candidates are also in the money, the report said, because many firms are offering attractive financial incentives to existing employees who are looking to leave.

ECHM, which polled over 300 commerce and public practice firms in England, said newly qualified ACCAs can expect to earn an average £43,000 in 2006, up 14% on last year's basic salary levels. The report predicted the figure will rise to £45,000 in 2007, a 22% rise on last year.

In addition, ACAs can now earn up to £48,000 compared to £45,000 last year, while the rate for CIMA accountants has increased in 2006 by 7% to £45,000.

John Hunter, ECHM chief executive said: "Accountancy firms are working hard to retain key talent within their businesses and we have started to see a growing trend in 'buy backs', particularly at the newly qualified level.

"This is not a tactic that practice firms have previously utilised and is indicative of the tightness of the talent pool. The Big Four have offered some individuals payments of between £5,000 to £10,000 to stay, while one top 50 practice gave a newly qualified accountant a 50% pay rise to ensure he remained with the business."

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Replies (7)

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By Ralphq41
21st Sep 2006 11:07

Percentages!!!!!
Carol - I assume you meant 19.3%?

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By jasonholden
14th Sep 2006 21:16

Oh dear Dan ...
Oh dear Dan, Carol has caught you out on this one.

Not sure if it’s more of a worry that Dan hasn’t checked the calculations before making his posting or that a financial recruitment specialist firm that many may use to assess potential employees aren’t very good at basic math’s themselves?

I also love these surveys, how many people out there who are employed by someone else read these surveys and think ‘hang on I’m not paid that much’ (I know I used to).

Jason
Holden Associates
The Small Business Blog
sbqaforum

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By rasmith
15th Sep 2006 09:37

i think i'll forward this to my boss

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By User deleted
14th Sep 2006 19:13

How do these figures agree?

The report states: "newly qualified ACCAs can expect to earn an average £43,000 in 2006, up 14% on last year's basic salary levels. The report predicted the figure will rise to £45,000 in 2007, a 22% on last year.

How did they work out 22% rise from last year? If the salary figures were:

2005: 37719
2006: 43000
2007: 45000

The 2005 figure is my own based on: (43000/114) X 100

The increase in 2007 is only 5.30% rise from 2005 figures. Am I missing something or are all accountants are useless these days after Enron, WordCom etc

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By NeilW
15th Sep 2006 03:09

Obviously
All these press releases boil down to

'vested interest stokes market'.

Here's my rewrite of the article.

"ECHM, a vested interest in the accountancy recruitment business, attempts to increase turnover by issuing a press release stating that you can probably earn more in another job. Now there's a surprise.".

NeilW

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By dan06
15th Sep 2006 09:17

Figures
The direct quote from the press release:

"According to those surveyed, newly qualified ACCAs can now earn a basic salary up to £43,000, a 14% rise on 2005 salaries and is expected to rise to £45,000 by 2007, representing a 22% increase between 2005 and 2007."

Dan Martin
Business Editor
AccountingWEB

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By peter morgan
20th Sep 2006 14:30

Vested Interest
This is garbage. Even if it were true it possibly only relates to the Home Counties. This is fairyland when applied to the marketplace in Scotland, or the West Country and just serves to stir up trouble. Articles like this are unworthy of accountingweb and the editorial team need to buck their ideas up.

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