Accountants are only slightly optimistic about an improvement in income this year, and most say it's their organization's performance, not their personal performance, that will primarily determine any change in income.
Sixty-three percent of our respondents said they expect raises at their organization to be about the same as last year. Eighteen percent expect more; 19 percent expect less.
With cautious optimism, most see raises exceeding inflation by a bit.
The biggest single group - 37 percent of all respondents - expects raises to average a modest three percent. Another 12 percent expect raises of one to two percent. And five percent expect no raises at all at their company.
But on the upside, about 31 percent are looking at raises of five or six percent and another 16 percent are forecasting seven percent or more.
Half the respondents expect their own raises to be about the same as everyone else's. An optimistic 37 percent think they'll get more than their colleagues, but 13 percent think they'll get less.
Responses to an open-ended question about key factors that might affect one's income showed that the health of CPAs own organizations was perceived by far as the most prominent. Over half the respondents mentioned it. Several summarized it in two words: "Company performance." And just as many said, "Company profits."
A senior partner at a small accounting firm reflected a common concern with internal and external factors: "Condition of the agricultural economy, costs of upgrading to a paperless office."
Personal performance ran a distant second behind economic factors. Half as many mentioned it, though most also referred to business performance. Words like "billable hours," "chargeability" and "collectability" came up a lot.
A staff member in a medium-sized company expressed a common combination of factors: "Accounting group's overall contribution to the company's bottom line and my own individual value."
Sarbanes-Oxley and new technology came up often. "Billable hours, technical knowledge, understanding of integrated audit methodology, SOX 404 experience," said one staff member of a large CPA firm.
Competition came up, too. In some cases, it was salary competing with the cost of technology. In other cases, it was the organization's competition for qualified staff, which meant less money available for raises.
Quite a few times the big bad boss was mentioned or implied, rarely without a note of cynicism. A rather well-paid CFO in a small, privately owned company, said the factor affecting his income was "Amount of my raise, which I have always had to ask for in order to get."
Other factors mentioned included "politics," "mood," "greed," "face time" and "glass ceiling."
But apparently the bosses have their own problems. One staff member at a small firm saw his income dictated by the "ability of the firm to absorb increases in health insurance premiums," adding, "Generally, premium increases have resulted in reduced salary increases."
Health insurance was the most commonly cited cost factor, but there was broad concern for generally meeting budgets.
Raises may indeed reflect performance, but that means economic performance as well as personal.
NOW IT'S YOUR TURN: What does it take to REALLY succeed as a CPA or financial executive?
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