Many organisations are directly or indirectly finance employers, requiring the services of public accounting staff, across junior and senior roles. Accounting salaries are in need of an average increase or more, as all UK household finances are under strain. So, if you are new to the accountancy and finance sector or already in one of the highest-paid accounting jobs, you will be eagerly waiting to hear if and what 2023 pay rise you will receive.
With high inflation and a possible slowing of the UK economy, will your average salary hold up? For the lowest to the highest paid jobs in the UK, this article will assist you.
Update: Accounting Salary Increases 2023
In the accounting job market of 2023, the accountancy and finance sector experienced notable shifts. Finance employers, responding to living and inflation pressures, have implemented an average salary increase, with a 6.6% rise in regular earnings and a 6.5% increase in total pay. This adjustment is a strategic move to navigate the finance job market's challenges, including significant staff shortages and the need for competitive wage offerings. Market insights indicate a strategic response from employers raising salaries to mitigate hiring challenges and address inflated salaries within the sector.
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Highlights And Key Takeaways:
- Increasing salaries in 2022 was a top priority for many employers.
- According to recent surveys, in the year ahead, 70% of businesses intend to offer staff a ‘significant’ increase in benefits and salary.
Why Accounting Staff Need A Pay Increase
Increasing salaries in 2022 was a top priority for many employers. Greater compensation was delivered, with an average increase of 6.4%. The salary increases were the same for salary-only accounting and finance professionals and public accounting salaries that included bonuses aligned to corporate profits. Accounting salaries rose at their quickest since the onset of the coronavirus pandemic, with public sector workers’ average increase equating to 3.3%, and private sector workers’ average increase equating to 7.2%.
However, workers require more significant compensation as inflation saw double-digit increases of 10.5%. In real terms, with inflation higher than pay rises, people working in accounting positions are worse off.
The Bank of England hopes to lower inflation to 8%, by the end of 2023, by increasing the base interest rate. An initial base interest rate rise has already occurred, adding 0.5% to move the rate to 4%. UK workers will need to carefully consider their financial planning for 2023 in light of this hike. Overdrafts, loans, credit cards, and mortgages will all be more expensive in 2023.
Additionally, UK mobile phone and broadband providers will increase their rates by 14% on April 1st, 2023. These factors, along with the projected contraction of 0.6% in the UK economy in 2023, add to concerns about the cost of living gaps and the possibility of a recession. Employers and the broader financial sector must focus on 2023 wage increases to retain staff and avoid skills shortages, let alone attract and hire for new accounting positions.
For more information on these topics, refer to our UK Labour Market and Economic Overview and Predictions Report for 2023. You can discover our other finance salary guides by reading Jobs Expected a Pay Increase in 2023.
What Pay Increase Accounting Workers Should Expect
According to recent surveys, in the year ahead, 70% of businesses intend to offer staff a ‘significant’ increase in benefits and salary. There is a strong indicator that more than half will give at least a 5% rise, demonstrating that employers appreciate that workers require greater compensation, especially under increasingly large workloads.
With pay rise expectations between 3-6% for most accounting and finance professionals, salaries may not keep up with the rising cost of living in 2023. With an average increase in wages below rising costs, there may need to be an increased reliance on other benefits to keep staff content. These benefits could include hybrid working to improve the work-life balance, professional training, or offering new responsibilities. In addition, tedious tasks traditionally undertaken by accounting staff may improve with the assistance of artificial intelligence.
Accounting staff who cannot secure an acceptable pay rise could take further action and search through over one million UK job vacancies. They could also consider becoming self-employed or a freelance accounting professional.
As for which accounting professionals should realistically expect salary increases in 2023, it is challenging to make predictions without more specific industry or job-related information.
15 Accounting Jobs Expected To Get Pay Rises In 2023
Here are fifteen accounting jobs in high-demand and expected to get a salary rise in 2023.
1. FORENSIC ACCOUNTANT
The average salary of a Forensic Accountant is £44,400 per year. Forensic Accountants investigate financial crimes such as fraud and embezzlement. To earn more, they can specialise in a specific industry or obtain certifications in forensic accounting.
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2. FINANCIAL MANAGEMENT ACCOUNTANT
The average salary of a Financial Management Accountant is £51,300 per year. Financial Management Accountants help organisations make financial decisions by analysing financial information. To earn more, they can obtain a Certified Management Accountant (CMA) designation or specialise in a high-paying industry.
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3. FINANCIAL ACCOUNTANT
The average salary of a Financial Accountant is £45,300 per year. Financial Accountants prepare financial statements and reports for external stakeholders. To earn higher wages, they can obtain a Certified Public Accountant (CPA) designation or specialise in a lucrative industry.
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4. MANAGEMENT ACCOUNTANT
The average salary of a Management Accountant is £41,200 per year. Management Accountants help organisations make internal decisions by analysing financial data. To earn more, they can obtain a Chartered Global Management Accountant (CGMA) certification or specialise in a high-paying industry.
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5. ACCOUNTING ASSISTANT
The average salary of an Accounting Assistant is £3,200 per year. Accounting Assistants provide support to accountancy and finance professionals. To earn more, they can become proficient in accounting software and obtain relevant certifications.
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6. ACCOUNTS ASSISTANT
The average salary of an Accounts Assistant is £25,400 per year. Accounts Assistants perform basic accounting tasks such as recording transactions and reconciling accounts. To earn a higher wage, they can become proficient in relevant software and take on additional responsibilities.
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7. TAX ACCOUNTANT
The average salary of a Tax Accountant is £38,700 per year. Tax Accountants prepare tax returns and provide tax-related advice to clients. To earn a higher salary, they can specialise in a particular type of tax law or obtain a Master of Taxation degree.
8. ACCOUNT PAYABLE CLERK
The average salary of an Account Payable Clerk is £27,400 per year. Accounts Payable Clerks are responsible for processing payments to vendors and suppliers. To earn higher wages, they can obtain relevant certifications and gain experience with accounting software.
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9. BOOKKEEPER
The average salary of a Bookkeeper is £28,500 per year. Bookkeepers maintain financial records for small businesses. To earn more pay, they can obtain certifications in bookkeeping software and take on additional responsibilities such as payroll processing.
10. TAX DIRECTOR
The average salary of a Tax Director is £61,500 per year. Tax Directors oversee an organisation's tax strategies and compliance. To earn higher wages, they can obtain a law degree or a Master of Taxation degree and specialise in a high-paying industry.
11. PAYROLL AND TIMEKEEPING CLERK
The average salary of a Payroll and Timekeeping Clerk is £26,400 per year. Payroll and Timekeeping Clerks process employee payroll and maintain records of employee hours worked. To earn better pay, they can obtain certifications in payroll software and gain experience in managing employee benefits.
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12. AUDIT FINANCIAL MANAGER
The average salary of an Audit Financial Manager is £61,100 per year. Audit Financial Managers oversee internal audits of an organisation's financial records. To earn more, finance talent can obtain relevant certifications and specialise in a particular industry.
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13. CASH AND CREDIT CONTROLLER
The average salary of a Cash and Credit Controller is £28,700 per year. Cash and Credit Controllers manage an organisation's cash flow and credit lines. To demand higher wages, they can obtain relevant certifications and gain experience in financial risk management.
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14. ACCOUNT RECEIVABLE CLERK
The average salary of an Account Receivable Clerk is £26,300 per year. Accounts Receivable Clerks track and manage incoming payments from customers and clients. To secure future wage movement, they can become proficient in relevant software and obtain certifications in accounts receivable management.
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15. ACCOUNTANT
The average salary of an Accountant is £38,000 per year. Accountants prepare and analyse financial records for organisations. To earn more, they can obtain relevant certifications such as the CPA or CMA and specialise in a high-paid industry.
How To Ask For A Pay Rise
Whether you are a Finance Manager, Financial Controller, or Financial Analysis Manager, asking your employer for salary increases is daunting. You may feel uncomfortable or intimidated, but with preparation, you can improve the odds of a satisfactory outcome.
In our report on How to Ask for a Pay Rise, we share the steps you can follow to prepare for and negotiate salary increases. Follow the steps in our wage raise guide, and you can confidently request, justify, and persuade your employer and secure a better salary for 2023.
Professional Development And Accounting Salary Trends
In the dynamic field of accounting and finance, professional development is a cornerstone for advancing to more senior positions and achieving higher pay. For accounting and finance professionals, acquiring professional accounting qualifications not only addresses skills shortages but also opens doors to roles with higher salary averages, such as management and financial accountants, tax managers, and accounts payable managers.
Part-qualified accountants, who are on their journey to full qualification, benefit from project-based roles focused on enhancing their data analysis skills and understanding of business-related roles. This hands-on experience is invaluable, preparing them for more complex responsibilities as they progress.
Newly qualified accountants often see a significant jump in salary offerings as they transition into roles that demand a comprehensive understanding of financial planning and management. Their fresh perspective and updated knowledge make them highly sought after, especially in a market where many newly qualified professionals are needed.
Accounts payable managers and assistant accountants play critical roles in managing payroll functions and reviewing payroll systems, ensuring efficiency and compliance. Their expertise in payroll systems contributes to the smooth operation of financial departments, making these positions valued within the industry.
The role of a tax manager, possibly a company’s first dedicated tax specialist, involves intricate knowledge of tax legislation and its impact on the company. This specialisation, coupled with strong interpersonal skills, allows them to navigate complex tax environments effectively.
A payroll clerk, skilled in managing payroll and ensuring accurate payment processing, exemplifies the importance of specialised roles in maintaining work-life balance and operational integrity within businesses. Skilled professionals in these roles are essential for the growth and sustainability of any organisation, highlighting the direct correlation between professional development and career advancement in accounting.
Accounting Pay Rise FAQs
Here we answer your questions on salary budgets and accounting pay rises.
WHAT PAY RISE SHOULD I EXPECT IN 2023 UK?
The most common consensus is that more than half of workers will secure a 5% average wage rise. However, your salary increase could be anywhere from 0% to 15%.
WHAT ACCOUNTING POSITIONS PAY THE HIGHEST SALARY? / WHAT IS THE HIGHEST PAID ACCOUNTING JOB UK?
Accounting positions paying the highest salary include Chief Accounting Officer, Chief Financial Officer, Financial Director, Managing Director, and Finance Managers.
WHAT IS THE FUTURE OF ACCOUNTING CAREERS?
The future of accounting careers will include hybrid working and integration of artificial intelligence tools and technologies. Read Will AI And ChatGPT Affect Your Salary.
WHAT ACCOUNTING QUALIFICATION PAYS THE MOST UK?
Accounting qualifications paying the most in the UK include Institute of Chartered Accountants in England and Wales (ICAEW), Chartered Institute of Management Accountants (CIMA), Certified Public Accountant (CPA), and Association of Chartered Certified Accountants (ACCA).
WILL THE UK MINIMUM WAGE GO UP IN 2023?
The minimum wage will increase to £10.42 from April 1st 2023, a 9.7% rise and a figure recommend to the UK Government by the Low Pay Commission.
