wages up, headcounts down at tax & accounting firms

are these the signs of a business model makeover?

by beth bellor

the tax and accounting industry is marking its 15th consecutive month of jobs growth, led by cpa firms and payroll services, according to the new 卡塔尔世界杯常规比赛时间 research study on jobs trends. the new analysis shows wage increases coming even as the pace of hiring is weakening and hours worked hits a four-year low.

more on jobs: tax & accounting salaries increase 2.8% | accounting profession growing, but slowly | accounting employment creeps back up | regional cpa firms go head-to-head with big four in talent wars | global talent wars hit home for local firms | tax & accounting industry shows signs of slowdown
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in this report, 卡塔尔世界杯常规比赛时间 highlights:

• current hiring trends in each of the bookkeeping, payroll, tax and cpa segments of the industry.
• average hourly wages for key segments
• typical hours worked per week
• trends concerning women in the accounting workforce

at the same time that most everyone is making more, they’re also working less. fewer hours are the norm everywhere, with the profession overall at its lowest point in four years. payroll’s year-over-year declines are approaching 4 percent.

the u.s. unemployment rate remains steady at 4.4 percent, with 222,000 new jobs in june. professional and business services added 35,000 of those, and the sector has grown by 624,000 over the last 12 months, one of the most robust segments of the economy.

all employees

overall employment in the accounting profession dipped for the third straight month in june, to 1,001,000 – down 300 or statistically flat for the month but up 19,300 or 2 percent for the year. average weekly hours worked were an even 35, the lowest mark since july 2013. that’s down half an hour for both the month and year, declines of 1.4 percent in both cases. average hourly earnings hit a new record, though, at $31.98. that figure is up 25 cents on the month and 94 cents on the year, respective gains of 0.8 and 3 percent.

the latest wage advance represents the sixth month in a row of accelerating pay increases so far this year. with the drop in payrolls and reduced hours worked, it appears the tax and accounting industry may be in the throes of a long-term trend to shed low- or entry-level jobs while adding high-level talent.

the accounting, tax preparation, bookkeeping, and payroll services sector collected $45.5 billion in the first quarter of 2017, up 2.9 percent from the year-ago quarter, including an 8& gain from households to $9.4 billion.

staff

staff number 766,400, up 5,800 or 0.8 percent for the month and 29,500 or 4 percent for the year. they average 34 hours per week, flat for the month and down 18 minutes or 0.9 percent for the year. their earnings topped $25 for the first time ever at $25.16 per hour, up 35 cents or 1.4 percent for the month and 78 cents or 3.2 percent for the year.

cpa firms, all employees

cpa firms employ 474,200 overall, up a scant 100 (statistically flat) for the month and 8,600 or 1.8 percent for the year. those employees work 36 hours – the least since january 2012 – down 24 minutes on the month and 48 minutes on the year, respective declines of 1.1 and 2.2 percent. they make $34.56 an hour, up 48 cents or 1.4 percent for the month and 40 cents or 1.2 percent for the year.

cpa firms, staff

staff at cpa firms number 351,900, up 800 or 0.2 percent for the month and 16,600 or 5 percent for the year. they average 35 hours a week, down 6 minutes on the month and 12 on the year, downticks of 0.3 and 0.6 percent. they’re flirting with the $27 mark for the first time at $26.94, up 53 cents or 2 percent for the month and 79 cents or 3 percent for the year.

tax prep

tax preparation services continue three months of growth by adding 1,400 or 1.4 percent to their rolls this month. year over year, though, the sector is down 300 or 0.3 percent.

payroll agencies

ah, payroll. the acrobats of this monthly report, ever swinging back and forth, back and forth.

overall employment stands at 171,400, up 500 or 0.3 percent for the month and 10,200 and 6.3 percent for the year. those workers’ hours have hit a two-year low at 34.8, down 42 minutes or 2 percent for the month and 1 hour 24 minutes or 3.9 percent for the year. earnings slipped a penny to $29.82, statistically flat for the month, with a year-over-year drop of $1.24, or 4 percent.

payroll staff remained the same for the month at 144,800, up 6,800 or 4.9 percent for the year. they average 34 hours per week, down 48 minutes on the month and 1 hour 18 minutes on the year, respective declines of 2.3 and 3.7 percent. they earn $25.28 an hour, up 24 cents or 1 percent for the month but down 9 cents or 0.4 percent for the year.

bookkeeping

other accounting services employ 254,500, down 200 or 0.1 percent for the month but up 1,000 or 0.4 percent for the year.

women

women continue to make steady gains, holding 622,900 jobs in the profession, up 1,700 or 0.3 percent for the month and 13,200 or 2.2 percent for the year. at cpa firms they number 291,500, down 900 or 0.3 percent for the month but up 8,300 or 2.9 percent for the year. in payroll they number 76,300, down 1,400 for the month and 1,500 for the year, or 1.8 and 1.9 percent respectively.

posted on july 18, 2017