Accountants salaries in the US are rising, whether you like or not. According to the 2022 Salary Guide from Robert Half, the U.S. starting salaries for professional occupations are expected to increase an average of 3.8% in 2023. This means that hiring an accountant in the U.S. is more expensive than ever.
According to some industry reports and salary boards like Glassdor, the median annual wage for accountants and auditors in the United States is approximately $73,560. However, this figure can vary significantly based on several key factors:
- State they are hired.
- The availability of accountants in the area.
- How close to retirement the candidate is (yes, this is a thing)
- Status of studies and degree (more an more firm are hiring undergraduates to fill the open positions at lower costs).
So, how much does it cost to hire an accountant in 2023? And is there a way to reduce your accounting expenses without compromising quality and efficiency?
Salary Trends for Accountants in 2023
The salary guide we mentioned provides the pay ranges for various accounting positions, based on experience level, industry, and location. Here are some examples of the annual salaries:
- Staff Accountant: $51,250 - $83,000
- Senior accountant: $67,750 - $113,500
- Accounting manager: $79,750 - $132,500
- Controller: $101,250 - $211,000
- Chief financial officer: $132,000 - $509,250
As you can see, these numbers are quite high, especially if you need to hire multiple accountants for different functions and projects. Moreover, these salaries do not include bonuses, incentives, benefits, and other perks that accountants typically expect from their employers.
Now, the numbers don’t change that much when you compare most popular payscale platforms like Glassdoor, PayScale, Indeed, and ZipRecruiter.
As you can see, there is some variation in the salary ranges for accountants across different platforms. This might be due to different sources of data, different methods of calculation, different sample sizes and distributions of data points.
So what can you do to reduce your accounting costs without sacrificing quality and efficiency?
Outsourcing Accounting Talent Offshore: A Smart Solution
When it comes to managing your accounting functions, considering offshore outsourcing of accounting talent is a smart move that can bring numerous advantages to your accounting and finance firm. This involves hiring your own accountants from a different country to handle essential tasks, optimizing efficiency and cost-effectiveness.
The concept of offshore outsourcing revolves around leveraging external expertise and lower costs of living to upscale your teams. By doing so, you unlock a range of benefits that can significantly enhance your operations:
Access Cutting-Edge Tools: Offshore outsourcing provides immediate access to advanced accounting software and technology. These external providers come equipped with the latest tools and systems for automating and optimizing various accounting processes. This includes cloud-based accounting, data analytics, budgeting, forecasting, reporting, and visualization. Incorporating these technologies can enhance accuracy, speed, and overall productivity within your accounting operations.
Engage Qualified Professionals: Offshore outsourcing connects you with a pool of skilled accounting professionals who can expertly manage diverse accounting tasks. These tasks may encompass bookkeeping, transaction management, financial planning and analysis, financial reporting, and ensuring accounting and financial compliance. You have the freedom to select professionals based on their specific expertise and the level of specialization that aligns with your project requirements.
Stay Compliant with Changes: Outsourcing providers stay abreast of dynamic tax laws and accounting standards that influence your business. They ensure your financial statements adhere to the regulations stipulated by bodies like the Financial Accounting Standards Board (FASB) and the Internal Revenue Service (IRS). This ensures that your accounting practices remain current and compliant, mitigating any potential legal issues.
Cost and Time Savings: Offshore outsourcing minimizes overhead costs linked to in-house hiring, training, management, and retention of accountants. This approach saves both time and money, freeing you to concentrate on core business activities and strategic objectives, rather than grappling with accounting challenges.
Flexibility and Scalability: Outsourcing accounting services grants you the flexibility to adapt service levels as per your business requirements and budget constraints. You can effortlessly scale up or down your accounting functions to accommodate fluctuations in transaction volumes and project complexity.
Offshore Outsourcing: Why Choose South America?
As the demand for skilled accountants continues to rise, accounting and finance firms face the challenge of attracting and retaining top talent while managing costs. One emerging strategy that firms are exploring is hiring accountants from countries like South America. This strategic move takes advantage of the talent pool available in these regions while potentially mitigating some of the rising salary pressures.
The economies of several South American countries have been steadily growing, leading to an increase in the number of well-educated professionals in fields such as accounting and finance. By tapping into this talent pool, firms can potentially access skilled accountants who can contribute to their operations at a competitive cost.
Abundant Talent Pool: South America boasts a substantial pool of educated and skilled accountants who proficiently manage an array of accounting tasks. With many holding accounting or finance degrees from esteemed universities, and certifications from international organizations like the Association of Chartered Certified Accountants (ACCA) or the Institute of Management Accountants (IMA), the region offers a robust talent pool.
Cost-Effective Solution: South America offers competitive labor costs in comparison to regions like North America or Europe. Engaging accounting talent from South America can deliver top-notch services at a fraction of the expense incurred in hiring local accountants in the U.S.
For example, the average salary for an accountant in Argentina is ARS$ 397 K per year, which is equivalent to roughly $4,000 USD per year at the current exchange rate. This is much lower than the average salary for an accountant in the US of $77,920 USD per year. Taking into account recruitment fees, communication tools, and legal compliance, these professionals still are well under the cost of US accountants.
Convenient Time Zone: With similar time zones as the U.S., South America facilitates seamless communication and collaboration. Depending on where you are, South America has a 90% overlap to US time zones, making only 1 to 3 hours difference. This similarity mitigates the challenges associated with different working hours or holidays, enhancing efficiency in project management and interactions.
Cultural Affinity: South America shares cultural values and business etiquette with the U.S., facilitating smoother collaboration. Expect a congenial and respectful relationship with your offshore partners, coupled with exceptional customer service.
Final Thoughts
The rising trend of accountant salaries in the accounting and finance industry is pushing firms to explore alternative strategies to maintain competitiveness. Hiring talent from countries like South America presents a viable solution, allowing firms to access skilled professionals at a potentially lower cost. However, firms must carefully weigh the benefits and challenges of this approach to make informed and strategic decisions that align with their business goals.
Outsourcing accounting services can help you gain access to advanced technology, skilled professionals, compliant standards, and flexible and scalable solutions. You can also save time and money, and focus on your core business activities and strategic goals.
