Can Accounting salaries continue to increase in Current Econ Climate?

Baby4

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Running Bing

Baby4 wrote: »

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Must say I am a bit bemused as to all the doom and gloom (stunted pay reviews, I even heard firms were offering people money to rip up their contracts)...OK so certain parts of big4 business will be hurt but surely Audit is safe as houses? Firms need auditing, its not like they can choose not to do it.

I always though accountancy was pretty recession proof.

Legend100

Firms do always need auditing but since there is less money coming in it makes sense that they cannot afford to pay the same level of fees to an auditor in the current climate. Its gonna affect every industry. The reason why accountants are safer than most is that when times are tough, liquidations come more commonplace which brings in plenty of business. Harsh way to look at it I know but it's true unfortunately.

As regards to pay cuts, Ive seen it first hand in law firms and will probably span into our line of career soon too. Many of us trainees in smaller firms couldn't possibly be paid any less than the pathetic salary we are on already so i don't envisage a pay cut any day soon

smcgiff

Practice I started off with recently let 10 people go ranging from trainees to qualified for many years.

So, it's a tough time out there all right.

Hanley

I imagine it's more of a problem for small practices??

I know the managing partner of my firm said that traditionally the firm performs as well, and better, the during "bad" years as it did during the Celtic Tiger. And that accounting is one of the top 5 reccession proof industries.

LightningBolt

I guess the profit generating sections of practices will change, instead of advisory growing at a fast rate which it has done in the last few years we will now see insolvency and corporate recovery services increase in revenue terms. Guess it means that there won't be as many opportunities as there once was in advisory and that a lot of people may have to change to the services with the most demand.

I have yet to start as I'm currently doing my masters, I don't think I'll get the same level of salary increase as those before me during my training contract in a big 4. I'm not worried too much though as I know that in a few years time the qualifaction will allow me to go on do other things and have a greater earning potential to others.

For smaller practices I'm guessing that they will feel the pinch more so than the Top 20 due to the fact that some may not specialise in other services.

Mr. Incognito

Can Accounting salaries continue to increase in Current Econ Climate

No. Simple common sense will tell you this.

Less money to go around affects everyone.

Nision

It will still depend on supply and demand, demand may be going down but supply is still very low, i can still see salary increases although not as liage as in the boom years.