Finance/Accounting Careers

Cost Control to Influence Salaries, Hiring Activity in New Year

Accounting and finance professionals with diverse skills and those who can help employers chart a path to greater profitability will see the best employment and salary prospects in the coming months, according to the 2010 Salary Guide from Robert Half International.

Not surprisingly, hiring and salary decisions continue to be characterized by caution and cost control. The economic downturn has led companies to place greater emphasis on jobs that reduce inefficiencies and boost cash flow. According to a Robert Half survey of finance and human resource managers, credit and collections and accounts receivables are the functional areas that have most increased in importance in their accounting and finance departments. As a result, credit and collections specialists who can evaluate credit risk, manage delinquent payments and help improve cash flow are in demand.

Although starting salaries for accounting and finance positions tracked in the Salary Guide are expected to remain relatively flat or see modest declines in 2010, certain in-demand positions will buck this trend. For instance, base compensation for credit managers/supervisors working in small companies (up to $25 million in sales) is projected to range from $42,500 to $57,500, a 1.3 percent increase over the previous year. This compares to a 0.5 percent average annual increase in starting salaries for all accounting and finance positions reviewed in the Salary Guide.

Positions in Demand
In addition to credit and collections, other financial positions with the best hiring and salary prospects in the coming months include:

• Tax accountant: Companies seek tax accountants who can help them achieve bottom-line savings through effective tax management strategies. Businesses also need guidance to maintain compliance with tax regulations, such as FAS 109 and FIN 48. Tax accountants with one to three years of experience at large companies (more than $250 million in sales) are expected to see an average national starting salary in the range of $46,500 to $61,500, a 2.1 percent increase from 2009.

• Compliance director: Firms need professionals who can help them comply with U.S. Securities and Exchange Commission mandates and prepare for the possible transition to International Financial Reporting Standards (IFRS). New regulations that are issued as a result of the financial crisis may generate further demand for professionals with the requisite compliance expertise. The starting salary range for a compliance director at a small company (up to $25 million in sales) is forecast to be $83,750 to $108,500, a 2.5 percent increase over the previous year.

• Senior financial analyst: Businesses need professionals who are able to evaluate financial plans, forecasts and budgets, and identify ways to improve profitability. A senior financial analyst at a midsize company ($25 million to $250 million in sales) is anticipated to earn a starting salary of $57,750 to $74,000 in 2010, an increase of 0.8 percent.

Implications of the Recession
The difficult economy has prompted companies to avoid narrow job descriptions and focus more on hiring individuals with broad skill sets. Managers often are unable to fill multiple openings within their departments due to budget cuts and, as a result, need staff members who possess experience in multiple accounting and finance specialty areas and can fill more than one role. For instance, a firm might hire an accountant who also has the ability to perform financial analyses.
In addition, more businesses are weighing the benefits of a staffing strategy focused on flexibility. By using a mix of core full-time employees supplemented by project professionals, companies can keep expenses down, reduce the need for layoffs and quickly adjust personnel levels as economic conditions dictate.

The View from Public Accounting
The recession has made it even more important for public accounting firms to keep existing clients satisfied. According to the American Institute of Certified Public Accountants' (AICPA) 2009 CPA Firm Top Issues Survey, client retention is the most significant challenge facing public accounting firms. In 2007, client retention was not even ranked among the top-five concerns.

Although public accounting clients have reduced the number of services used in an effort to trim expenses, there continues to be steady demand for tax accounting services. Accounting firms face competition from the corporate sector when it comes to hiring top financial professionals, however. Also, smaller accounting firms are seeking to strategically add skilled accountants in an effort to better compete against their larger counterparts.

Compensation packages in public accounting have been affected as economic conditions deteriorated. Most salary levels have shown no rise, with declines reported in some areas, and this is likely to be the case in 2010 as well. Additionally, instances of large signing bonuses and raises are far less common and typically reserved for the most in-demand professionals.

Although a cautious approach will continue to shape the hiring landscape in the next year, forward-looking companies also recognize the need to invest in accounting and finance professionals with specific expertise who can help them capitalize on emerging opportunities. In addition, some firms are eager to take advantage of the large pool of top talent now available by selectively adding full-time staff in key areas.

For more information on salary and hiring trends and to request a complimentary copy of the 2010 Salary Guide for accounting and finance, visit www.roberthalf.com/SalaryCenter. Also, for the first time, the guide is accompanied by an online Salary Center which features up-to-the-minute information and analysis on the employment environment. In addition, Robert Half’s new Salary Calculators allow users to quickly access starting salary ranges for a specified position and location.

For more career and management advice, listen to The Management Minute, Robert Half’s podcast series at www.rhi.com/podcast.

Founded in 1948, Robert Half Finance & Accounting, a division of Robert Half International Inc., is first and largest specialized financial recruiting service. The company has more than 360 offices worldwide. Search for jobs now or learn more at www.roberthalf.com.