What's behind the talent exodus in accounting?

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Talent acquisition and retention is a growing challenge in the accounting profession. Despite efforts to raise salaries, and firms diving deeper into the realm of artificial intelligence to make up for staffing shortages, experts say widespread changes are needed to refocus the next generation of talent on the future of accounting — not the present.

To start, average starting salaries for those with accounting majors fall short of those offered to business majors and applicants in the technology and finance sectors.

Data from Accounting Today's inaugural salary survey found that average annual wages are uncompetitive at $65,000 and $88,000 for entry-level staff and senior team members respectively. It's not until reaching managerial roles that average salaries go beyond six figures at $106,000 at small firms and $121,000 for those working at large organizations.

"The industry as a whole is not attractive to the younger population, and it's difficult for our staff to work remotely," Paul Miller, a CPA and managing partner at Miller & Company in New York, said in an interview with Accounting Today's Jeff Stimpson. "We pay our staff above [the] industry average, we offer excellent benefits, we have a matching pension plan [and] more importantly … we treat people well and respect our staff."

Read more: Misconceptions and mismatches: Dealing with the staff shortage

Wage disparities are only one piece of the puzzle, however. 

Leaders of audit firms and accounting practices have taken to integrating traditional and generative AI tools into their organizations to handle the mundane tasks that normally plague professionals. The challenge then becomes, how can firms effectively use this technology without outmoding the entry-level positions that would otherwise handle the mundane?

Shagun Malhotra, CEO and founder of Skystem, told Accounting Today last month that modifying accounting education and certifications to include a greater focus on technology "could make the profession more appealing and relevant to a younger, broader set of professionals," she said.

"The focus needs to shift from routine compliance tasks to strategic, technology-driven roles that still add value to the business without wasting time on [un]necessary tasks," Malhotra said.

Read more: Do we need a paradigm shift to overcome the accountant shortage?

AI adoption will only continue to grow as regulators become more knowledgeable and comfortable with the technology, which executives hope will ease the workload for accountants across the profession and, in turn, reduce turnover.

"We've asked tax and accounting professionals to do too much with too few resources for too long. … The burnout shows through high attrition rates and professionals committing highly visible errors," said Elizabeth Beastrom, president of Thomson Reuters Tax & Accounting.

Read on for a look at the top talent struggles hitting firms across the U.S. and expert commentary on what factors are underpinning this trend.