|
Feature
Article
SARA HOPKINS / Special |
| Stacey
Johnson, who got a master's degree in accounting from
Georgia Southern University in May, was able to exceed
her goal of landing a $50,000-a-year job within two
years. |
10-20-05
New
accountants cash in on demand
>>
HA&W News Archive
By ROBERT
LUKE
The Atlanta
Journal-Constitution
Stacey
Johnson is keen on problem solving.
That
talent has landed her a job that pays nearly $50,000 right
out of Georgia Southern University.
"My
goal coming out of school was to make $50,000 within the
first two years of work," says Johnson, who graduated
in May with a master's degree in accounting. "And my
offer from Habif, Arogeti & Wynne [Georgia's largest
independent accounting firm] exceeded my expectations and
goal."
An acute
shortage of accountants, particularly for internal audit
work, has prompted accounting firms, and businesses such
as BellSouth, to aggressively court both freshly minted
and experienced accountants.
The
shortage is compounded by a deluge of work driven in part
by new government rules to improve financial accountability.
As a
result, salaries are rising, with many receiving double-digit
increases.
"It's
somewhere between 12 to 16 percent higher than it was a
year ago," says Brian Swaney, a partner at the Atlanta-based
FirstPRO search firm.
And
firms are offering other inducements, such as bonuses and
flexible work schedules, to retain top talent.
The
shortage has its seeds in the late '90s, when accounting
fell out of favor with business majors. They flocked instead
to finance and information technology to participate in
the dot-com boom.
As a
result, the number of graduates with degrees in accounting
fell to 44,695 in 2001-2002 from 61,220 in 1994-95, according
to the American Institute of Certified Public Accountants.
That
trend reversed course in the last two to three years. In
2003-2004, for example, 53,760 students received degrees
in accounting. And indications are, many more graduates
are in the pipeline.
At Emory
University, for example, there are 36 accounting majors
who are seniors this year, against 26 last year, according
to spokeswoman Elaine Justice.
While
enrollments are climbing nationwide, some schools can't
accommodate more.
"We
are basically at capacity," says University of Georgia
accounting professor Dennis Beresford, citing budgetary
and other constraints. UGA admits about 175 new undergraduate
accounting majors each year and roughly 100 master of accounting
degree candidates, he says.
"We
could probably produce twice as many, and they would still
find jobs quite easily," says Beresford, a former chairman
of the Financial Accounting Standards Board. "I'd say
for the foreseeable future, this is the golden age for accounting
students."
Tougher
standards
Some
schools, working with accounting firms and businesses that
hire their graduates, have tightened standards as well.
"We
won't let anybody into accounting unless they have at least
a B average in their accounting principles course, which
is the course that everybody in the College of Business
has to take," says Jane Mutchler, associate dean for
academic planning and programs at Georgia State University's
Robinson College of Business. The change took place 18 months
ago, says the former director of the School of Accountancy.
The
scarcity of accountants comes at a time when accounting
firms and publicly held companies are scrambling to comply
with federal law that requires management to assess the
effectiveness of its internal controls over financial reporting.
Congress
passed the Sarbanes-Oxley Act of 2002 in the wake of corporate
scandals, such as Enron. The law seeks to improve the quality
of audits, enhance the financial expertise of corporate
directors and boost the accountability of managers at public
companies.
By some
estimates, audits are taking as much as 60 percent more
time to complete, and at higher cost.
"It's
a double whammy," says Dan Simms, referring to the
increased workload and dearth of professionals. Simms is
managing partner of Habif, Arogeti and Wynne, which has
141 professionals. The firm has increased its staff by 32
professionals so far this year, compared with none last
year and six the year before.
"We
currently have openings for at least 10 individuals at the
manager-and-above level," says Simms, referring to
those with five or more years of experience.
Another
reason for the new hires: "We have picked up substantially
more business," Simms adds, estimating a 15 percent
increase in revenue for the firm this year over last. "It's
coming as a result of changes in the industry, with the
Big Four [accounting firms] increasing prices and the fallout
of the middle-market clients from the Big Four."
BellSouth,
too, has left the "help wanted" sign out, particularly
for auditors whose task is to make sure a company's accounting
records are right.
"The
main reason we have increased the number of auditors is
the additional work of Sarbanes-Oxley," says Jeff Battcher,
a BellSouth spokesman.
The
Atlanta-based company now has about 70 auditors. It hired
eight earlier this year and is looking to hire 12 more.
"We
are in a continuous hiring mode," Battcher says. "We
continue to use every means available to retain and attract
auditors. For example, we have increased our salary for
new hires and our existing staff by approximately 16 percent
this year."
BellSouth
also is awarding retention bonuses of thousands of dollars,
depending on work experience, to get auditors to stay at
least another year, Battcher says.
"Even
so, we're losing a lot of good auditors to the public accounting
firms, to other corporations, even to the Public Company
Accounting Oversight Board. We lost a very good auditor
to them last week." The PCAOB was created by Sarbanes-Oxley
to oversee auditors of public companies to protect the interest
of investors.
Deloitte
& Touche, which has hired between 50 and 100 new people
in the audit, internal control and data security field in
each of the past two years, currently pays a bonus to employees
who refer somebody to the firm who is hired.
"Right
now the bonus we're paying for audit talent is $10,000 for
a senior or a manager," says Peter DeMartin, Southeast
recruiting director.
A senior
accountant has three to five years' experience, while a
manager has between five and 10, he says. Paying the referral
bonuses has an additional benefit, DeMartin says. It aids
retention.
The
larger the accounting firm, the higher the professional
staff turnover, according to the AICPA. Last year, turnover
at firms with more than 200 CPAs averaged 17 percent, against
12 percent for all firms.
"A
lot of students feel the public accounting firms are kind
of a training ground," says Beresford of UGA. "They
will eventually move into the corporate world, usually with
an increase in pay.
"It's
also a lifestyle change," Beresford adds. "The
accounting firms work their people very, very hard. In the
corporate world, they still work hard, but they don't have
to kill themselves three or four months of the year during
the audit or tax season."
Likely
to continue
Bill
Driscoll, president of the Southeast district of the Robert
Half International search firm, says the bonuses and fatter
paychecks are likely to continue next year.
"What
we have seen in the last year is multiple job offers and
a much shorter window for candidates to find a new position,"
Driscoll adds.
That
puts Stacey Johnson and others like her in the catbird seat.
Johnson,
24, gained firsthand experience in audit and tax work while
interning last year at an accounting firm in Warner Robins,
her hometown. Among her tasks was verifying that payments
made by a sample of customers of an electric membership
co-op actually went into the utility's bank account.
"We
do this to ensure the accuracy of the financial statements,"
says Johnson, who professes a love for her work.
"It's
challenging. It's ever-changing. There are always new rules
and regulations and changes in accounting standards. There's
a lot of problem solving involved. There's not always a
quick and direct answer. Sometimes you have to do a lot
of research. It's not just cut and dried."
HIRING
TRENDS AT CPA FIRMS ('04):
•
19,705: New accounting graduates hired
•
44: Percentage of professionals who are women
•
53: Percentage of women among new graduate hires
•
10: Percentage of professionals who are minorities
•
23: Percentage of minorities among new graduates hires
Source:
AICPA
SELECTED
SALARIES ('05):
•
Director of audit & tax for a large accounting firm
$81,750-$125,000
(up 5.1% from '04)
•
Internal audit manager of a large company
$69,500-$90,000
(up 12.5% from '04)
•
Senior audit & tax accountant at a medium-sized accounting
firm
$48,250-$62,000
(up 9.7% from '04)
•
First-year internal auditor at a small company
$34,000-$38,250
(up 14.7% from '04)
Note:
*Add 10 percent for graduate degrees or professional certifications.
Atlanta salaries estimated to be 9.6 percent higher.
Source:
Robert Half 2005 salary guide
>>
HA&W News Archive
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