Chartered accountants still top earners

Chartered accountants still top earners

Latest remuneration survey results show that while chartered accountants remain one of the highest-paid professional groups, salaries have now stabilised after several years of increases.

The latest 2010 NZICA Remuneration Survey results show the average income of a chartered accountant is now $139,077, up one percent on last year.

The annual independent survey captures salaries of over 10,000 chartered accountants in different positions, companies, locations and industry types. This survey provides the most detailed and up-to-date analysis of salary and remuneration trends in the accounting sector. It was conducted by the New Zealand Institute of Chartered Accountants (NZICA) in association with recruitment and HR services provider Randstad.

“We have seen the chartered accountant qualification retain its value in the employment market. During a difficult economy, employers and organisations continued to recognise our members as key staff and business advisors,” said Terry McLaughlin, NZICA chief executive.

“Compared to other professions and industries, chartered accountants remain one of the higher paid professional groups in New Zealand. However, we are beginning to see salary growth ease.”

The survey shows wide fluctuations in salary by region, type of position, and sector. During the recession there was high demand for the skills and expertise of qualified accountants and less demand for accountants who were not yet fully qualified.

“While we have seen decreases in graduate salaries affecting our provisional members, it is pleasing to see growth in our membership of three percent over the same period,” said Mr McLaughlin.

The indicative trends from the remuneration survey are:

Senior qualifications were more protected from the recession

Qualified chartered accountant salaries increased one percent. The salaries of chartered accountants still completing their qualifications remained relatively stable. Associate chartered accountants and provisional chartered accountants experienced a two percent decrease in salaries.

Provisional associate chartered accountant (PACA) and provisional accounting technician (PAT) qualifications had the greatest salary decreases during 2009 (23 percent and 19 percent respectively). This is a reverse of the results from last year’s survey, which showed that those at a provisional accounting level saw the highest increase in salaries, with PACAs and PATs increasing on average 17 percent. What is reflected in these latest numbers is that these qualifications are in a similar salary position to 2008.

Accounting technicians experienced an 11 percent decrease.

The financial services sector recovered well

Chartered accountants in the financial services sector received a 14 percent salary increase (over 2009), the largest for any sector and possibly a result of being the first sector to be impacted by the recession and, subsequently, the first to recover.

Chartered accountants in small public practice firms had an average three percent decrease whereas those in the public sector rose four percent. Chartered accountants in the non-for-profit sectors increased three percent.

Sole practitioners did well

The three top positions that increased were sole practitioners (30 percent), finance directors (16.5 percent) and treasury accountants (14.8 percent).

The three largest decreases were assistant accountants (15.4 percent), forensic accountants (12.3 percent) and company secretaries (8 percent).

Wellington and Christchurch strongest

On average chartered accountants practicing in Wellington, Christchurch and the North Island regions received increases in salary during the last 12 months. The largest increases were in Wellington (3.1 percent) and Christchurch (1.6 percent). Auckland continues to hold the highest average chartered accountant income of $151,372.

More on the NZICA Remuneration Survey can be found at on the NZICA website at Remuneration survey details

ENDS

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