Starting salaries for new accountants 10% lower than anticipated in 2023

Starting salaries for newly qualified accountants are 10% lower than anticipated, new research from accountancy and finance recruitment firm Wade Macdonald said. 

The 2023 Salary Guide highlighted how trained and part qualified roles have only seen a £1,000 increase since last year, despite typical salary increases averaging between £3,000 and £5,000. The average salary increase in the accountancy profession in 2023 was between 4% and 6%. 

The research found that of the 850 professionals surveyed, 25% of respondents have not received a salary increase and 19.5% received less than 3%. 

For entry level jobs after qualifications, the salary range for accounts payable managers was £40,000 to £65,000, while assistant accountants should expect to earn £32,000 to £45,000 and accounts assistants £28,000 to £35,000.

Despite this, one area where there is strong growth in salaries is tax where demand for staff continues to grow. An average salary for a tax manager is £75,000, while a VAT manager can command £80,000. 

In addition, there has been significant demand for individuals pursuing professional accounting qualifications and those specialising in payroll. 

Chris Goulding, managing director of Wade Macdonald, said: “At this time last year, our discussions revolved around the “great resignation,” shortages of skilled professionals, record-high levels of job vacancies, and substantial salary increases on the whole due to the stagnation of wages during the Covid-19 pandemic.

“As I draft the 2024 guide, we find ourselves amidst a more cautious job market. While shortages of skilled workers persist in the key sectors we cover, there appears to be a decrease in the creation of new job openings, and the pace of job movements has slowed as individuals harbour a lesser degree of confidence in the prevailing economic climate. Salary increases over the past year align more closely with pre-Covid levels, indicating a certain level of stabilisation.”