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Public Accounting Firms Incomes from $11,000 to $400,000+Compensation in Public Accounting Firms, 19th EditionPUBLISHED: November 2001 Summary of the 621-page Compensation in Public Accounting Firms, 19th Edition survey report of 38 benchmark jobs from Abbott, Langer & Associates, Inc. The following describes the highest and lowest paid job characteristics, the national median total cash compensation for 23 benchmark jobs, and the factors affecting salary (Geographic Location, Gross Annual Fees, Number of Employees, Population of Metropolitan Area, Level of Education, Length of Experience, Level of Education and Length of Experience Simultaneously, Certification, and Supervisory Responsibility):
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The composite highest-income practitioner in this field (salary plus cash bonus and/or cash profit sharing) is a senior partner of a public accounting firm (defined as a major stockholder in the firm). His or her firm is headquartered in or near San Diego, San Francisco/Oakland, Houston, Raleigh/Durham/Chapel Hill, Denver/Colorado Springs, Sacramento, Long Beach/Santa Ana, Philadelphia, Los Angeles, Chicago, or Boston, or outside the metropolitan areas studied in Idaho, Alaska, or New Mexico. This individual has 15 years of experience or more. This individual's specialty is in taxation accounting, auditing, or financial analysis/planning. While the median Senior Partner has a total annual income of $150,000, the highest-income individual reported in this group makes well over $400,000. At the far end of the income spectrum, Junior Account Clerks have a median income of $20,738. Sometimes earning under $11,000, the lowest-paid employees in this group usually are employed by firms headquartered in or near Los Angeles, Denver/Colorado Springs, Houston, or Charlotte, or outside the metropolitan areas studied in West Virginia, Louisiana, Nevada, Pennsylvania, Arkansas, Texas, or Indiana, does not have a college degree, and has under three years of experience.
These composites represent the briefest possible "boil-down" of the voluminous data provided regarding current salaries and cash bonuses and/or profit sharing, and numerous demographic variables provided by 149 public accounting firms regarding almost 3,000 employees. The end results of the survey, including an extensive section on fringe benefits and working conditions, appear in Compensation in Public Accounting Firms, 19th Edition, a 621-page statistical analysis of current salaries and cash bonuses and/or profit sharing in this field. Copies are available for $675.00 through our On-Line Order Form or from Abbott, Langer & Associates, Inc., Dept. NET, 548 First St., Crete, IL 60417 (telephone 708/672-4200; fax 708/672-4674). In addition to the incomes of the benchmark jobs already discussed, the median total cash compensation nationally for some of the other 36 benchmark jobs included in the survey report is:
Naturally, these nation-wide pay rates vary by region, state & metropolitan area, type of accounting services provided, annual fees received by the firm, size of firm, and type of consulting performed/supervised/managed, level of education, length of experience, and supervisory/managerial responsibility involved - all demographic variables for which data are provided in the complete report. Effect of Geographic Location Executive/managerial/supervisory personnel receive the highest compensation in the north central and northeastern states, and the lowest compensation in the southern states. Those in the Pacific, Rocky Mountain, midwestern, and southwestern states fall between those two regions. Non-supervisory accountants & auditors fare best in the Pacific, southwestern, and northeastern states, and least well in the southern and north central states; those in the Rocky Mountain and midwestern states had incomes between those of the other groups. Account clerks and payroll clerks do best in the Pacific and midwestern states, and worst in the north central states, with those in the southern, northeastern, and southwestern states having incomes between these two groups. Data are provided on compensation by state and major metropolitan area in the complete report. By Gross Annual Fees As might be expected, the median income of executive/managerial/supervisory personnel increases fairly regularly as the gross annual fees of the firm increases. This is also true for non-supervisory accountants & auditors, but less so for account clerks and payroll clerks. By Number of Employees Again, as might be expected, the median income of executive/managerial/supervisory personnel increases fairly regularly as the number of employees in the firm increases. This is somewhat less true for non-supervisory accountants & auditors, and even less so for account clerks & payroll clerks. By Population of Metropolitan Area Median income rises fairly regularly for executive/managerial/ supervisory personnel as the population of the metropolitan area increases. This is also true for non-supervisory accountants & auditors and account clerks & payroll clerks. By Level of Education Median income of executive/managerial/supervisory personnel rises in direct relation with level of education. For example, the median annual income for an executive with a doctoral degree is 138% higher than the annual income for an executive with a bachelor's degree. This increase holds true to a lesser extent for non-supervisory accountants & auditors, and for account clerks & payroll clerks. By Length of Experience As might be expected, the median income of executive/managerial/supervisory personnel increases very regularly as the individual's length of experience increases. This is also true for non-supervisory accountants & auditors and, to a slightly-lesser extent, for account clerks & payroll clerks. By Level of Education and Length of Experience Simultaneously When level of education and length of experience are treated simultaneously, the correlation with income is still greater than when each factor is considered individually, regardless of job level. By Certification The median income of both executive/managerial/supervisory personnel and accountants and auditors is always greater when the individual is a Certified Public Accountant. By Supervisory Responsibility Not surprisingly, the median income of executive/managerial/supervisory personnel correlated highly with level of supervisory responsibility, increasing directly with number of employees supervised (either directly or through subordinate supervisors). For example, Partners who supervise 25 or more professionals have a median income of $150,000, 20% higher than the median income of $124,496 of those who supervise three or four professionals. Order the 621-page survey report, Compensation in Public Accounting Firms, 19th Edition, described on this page $675, with charges for shipping & handling (and IL sales tax, if applicable). The report is IN STOCK and can be shipped out within two business days. The mean, median, 1st and 3rd quartile, and 1st and 9th decile data for base salary, and total annual cash compensation are reported for many demographic variables, including education, experience, geographic location, type and size of employer, etc. To purchase the report, use our On-Line Order Form, call 708/672-4200, email, fax, or write per the information at the bottom of this page. See other salary and benefits survey reports in accounting |
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