The Current State Of Accounting
Accounting firms are raising salaries at record levels, but will it be enough to solve the talent shortage? The latest MAP Survey reveals how pay, profits, and even AI adoption are shaping the profession. In this edition, we’ll tell you everything you need to know 👀
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Accounting Firms Boost Pay to Attract New Talent
The accounting profession continues to face a shortage of talent as fewer students pursue accounting degrees, opting instead for higher-paying fields like finance. To address the gap, firms have increased starting salaries in recent years, according to the AICPA’s latest Management of an Accounting Practice (MAP) Survey.
- Median starting salary for new accountants with bachelor’s degrees: $60,834 (up 11% since 2023)
- Median starting salary for those with master’s degrees: $67,750 (up 17% since last survey)
Still, it remains uncertain whether higher pay will be enough to attract more students into accounting. At the partner level, compensation continues to grow:
- Median partner compensation: $202,521 (up 10% over 2023)
- Profit per partner: $252,663 (up 12%)
The survey, which polled 1,073 firms between May and July of this year, found that most respondents (81%) were smaller firms with under $5 million in client fees. Overall revenue growth has slowed compared to the post-pandemic surge.
- Median revenue growth in 2024: 6.7%
- Median revenue growth in 2022: 9.1%
- Larger firms ($10M+ in revenue) saw 9.1% growth in 2024
AI adoption remains limited across the profession. While 65% of firms expressed openness to new technologies, only 13% have successfully implemented them. Few firms have formal upskilling plans, though some see automation as an opportunity for improved balance.
- 26% of firms conducted occasional informal training
- 5% have formal training programs in place
- 45% said automation savings could reduce hours and improve work-life balance
Looking ahead, the survey suggests firms are making progress in addressing compensation concerns but still face challenges in competing for talent, preparing staff for future roles, and adapting to technological change. Balancing higher pay with strategic innovation may be key to sustaining growth in the profession.
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