What’s the average Accountant and Chartered Accountant salary in the UK?
If you’re looking for a career which enjoys above average salaries, job satisfaction and progression then why not consider accountancy? Accountants in the UK can earn anything from £25,000 as a trainee to over £150,000 as a senior finance professional depending on qualifications, experience, company size and industry. And, with demand for accountants being at an all-time high, there’s never been a better time to join the profession.
In our latest blog, we’ll explore the earning potential for accountants and Chartered Accountants in the UK, along with the factors that influence salary. Whether you are an entry-level accountant or a senior finance professional, find out more about your earning potential as your progress your career in accountancy.
What’s the difference between an accountant and a Chartered Accountant?
If you are looking for a career in the finance profession you might be puzzled about the difference between an accountant and a Chartered Accountant. Well, it comes down to experience and qualifications.
The key distinction is that a Chartered Accountant is more highly qualified and will hold professional accreditation, a chartered status similar to other professions. They must adhere to the highest professional and ethical codes of conduct and usually offer specialist accountancy services.
An accountant, on the other hand, tends to provide straightforward financial support with day-to-day services such as annual tax returns, invoicing or pay roll. They will have qualifications and/or an accountancy apprenticeship plus some experience working in accounting.
Entry-level accountant salary
When it comes to starting out in finance and accounting, there are a wide array of functions relating to the management and exchange of money. You could be an accounts assistant, an accounting technician, a trainee accountant, a bookkeeper or a payroll assistant, to name just a few of the many roles available.
Most entry-level roles in accounting are grouped in one of two professional designations: Chartered Accountants and Management Accountants.
Trainee Chartered Accountants are usually employed in a practice where there is an opportunity to work with different clients in a range of industries. There are trainee and apprenticeship schemes for graduates and school leavers offered by many firms from local practices to the Big Four (Deloitte, PwC, KPMG and Ernst & Young).
Management accountants or finance trainees work within organisations which allows them to specialise in a particular industry such as pharmaceuticals or charity accounting. Trainee positions such as an apprenticeship are an important step in any finance career and the experience gained will help towards professional qualification.
Significant pay differences
A common misconception is that all accountants earn the same across the board. In reality, they don’t. Qualifications, specialisation and industry all lead to significant pay differences. However, even as a trainee accountant, the median starting salary for graduates is £30,000 and you could even see this double in the three or four years it takes to complete your qualification. Here are some examples of entry-level salaries*:
Average salary: £25,000 to £30,00 per year
Accountant assistant: £31,900 (London)
Payroll assistant: £24,600 (East Midlands)
Junior accountant £26,000 (Scotland)
Bookkeeper £26,000 (East Anglia)
Accounts technician £30,730 (average)
Finance trainee £25,000 (average)
Factors that influence UK accountant salary include:
Experience
Qualifications - if you’re aiming high, qualifications such as ICAEW, ACCA, AAT or CIMA can boost your earning potential.
Location - London and other cities such as Manchester tend to pay more than other regions
Specialisation - high-demand areas such as tax or audit means that you may be able to demand more because your skills are in short supply.
Size of the firm - where you work can impact your salary. Smaller practices may offer more opportunities to progress quickly but larger firms usually pay more.
Mid-level accountant salary
If you’re a mid-level accountant with a few years of experience under your belt, the good news is that your salary will be increasing. The even better news is that the current shortage of accounting talent in the profession, means that your monthly paycheck could be rising more quickly than you thought. This year, 83% of senior leaders reported a talent shortage, up from 70% in 2022, which means that your skills are likely to be in greater demand. Specialist or managerial roles can nudge you higher up the pay ladder.
Here are some examples of mid-level salaries*:
Average salary: £35,000 - £50,000 per year (£60,000 for those with a specialism or in management)
Management accountant: £51,800 per year (London)
Financial accountant: £61,000 per year (London)
Tax accountant: £53,000 per year (West Midlands)
Financial analyst: £43,100 per year (North East)
Financial controller: £61,000 per year (North West)
Senior and specialist accountant salary
The UK is facing a significant shortage of senior finance professionals, a challenge that is worse in the regions. The shortage is evident across all industries with SMEs feeling the brunt of the crisis. As a result, senior accountants with expertise built over many years are highly sought after. Those with specialist knowledge of auditing or forensic accounting, for example, will be looking at six-figure salaries.
Here’s a quick breakdown of some typical roles and their salaries*:
Average salary: £50,000 to £100,000 plus per year
Finance Business Partner £54,000 per year (North West)
Senior Manager £67,000 per year (Yorkshire & Humberside)
Senior Manager Insolvency £90,000 per year (South East)
Project Accountant £50,400 per year (East Midlands)
Chartered Accountancy Chartered Accountant salary
The high-flyers of the finance world holding down such top-tier positions as finance director, chief finance officer (CFO) or partners in accountancy firms are Chartered Accountants.
Chartered Accountants are experts in a wide range of financial management and business advisory services and their earning potential is significantly higher than non-chartered accountants. They work across industries advising business, private and public sector organisations, government bodies and individuals on managing their finances effectively.
Becoming a Chartered Accountant requires extensive training, work experience and education. Only those who have completed the necessary qualifications to become members of a recognised accountancy body can use the title ‘Chartered.’ Qualifications are provided by professional bodies including:
Entry-level Chartered Accountant salary
Average salary: £21,000 - £35,000 per year
Training contracts: Many trainee accountants in top firms such as the Big Four (Deloitte, PwC, EY, and KPMG) can see their salaries rise quickly. An entry-level auditor for Deloitte, for example, can expect to earn £30,000 initially rising to more than £45,000 with more experience and working towards qualifications.
Mid-level Chartered Accountant salary
With three to five years of experience behind them, Chartered Accountants see a marked increase in their earnings.
Average salary: £45,000 to £80,000 per year
Roles include: Finance Manager, Audit Manager or Senior Tax Consultant.
Bonuses – performance-related bonuses are common in corporate roles.
Senior Chartered Accountant salary
Chartered Accountants with significant experience often hold leadership roles offering some of the highest salaries in the accounting field. The sky really is the limit for these top finance professionals. As an example, the CFO of Tesco, was appointed in 2020 on a basic salary of £700,000.
Average salary: £90,000 - £150,000 per year
Roles include: Finance Director, Chief Financial Officer (CFO) or a Partner in an accounting firm.
Industry variations: Banking, consulting and private equity sectors often pay higher salaries.
Interested in an accountancy career?
If you’re looking for a stable, respected and rewarding career with competitive earning potential explore our AAT, ACCA, ICAEW and CIMA professional accountancy courses and discover how they can help you achieve your career goals.
Not sure what qualifications or courses you should take to become an accountant in the UK? Check out our in-depth articles on how to become a Chartered Accountant and AAT qualifications explained.
Want to know more?
Contact our specialist team for further information about all our accountancy and other professional qualifications.
*Salaries provided by Reed’s UK Salary Guides 2024