2023 Top 100 People extra: Talent and relevancy

As part of this year’s Top 100 Most Influential People survey, Accounting Today asked, “What is the most important issue currently facing the accounting profession?"

The full responses of all the candidates are below. The full T100 list is available here.

A prominent issue facing the accounting profession is the intersection of technology, human capabilities, and trust. The profession has and will continue to undergo significant transformational change as a result of advanced technologies such as AI. With this transformation comes the need to embrace new behaviors and processes while also contemplating the human element. The future of the profession is technology-driven and human-powered. The efficiency and accuracy of technology plus the emotional intelligence and critical thinking of professionals will drive elevated outcomes if contemplated and governed appropriately. While these evolving technologies hold great promise for business, workers, and society at large, there remains potential for wrongdoing. As a result, technology ethics is also paramount to safeguard the future of the profession. The profession must commit itself to the use of technology in ways that are trustworthy and ethical – for ourselves and our stakeholders.

— Lara Abrash, chair, Deloitte US

Client expectations in an increasingly competitive landscape.  

Clients have become more demanding in terms of services provided by accounting  firms. They expect real-time insights, advisory services, and a more strategic  partnership with their accountant. All the while, the accounting industry has  become highly competitive. Smaller firms compete with larger, established firms,  and the rise of technology-enables startups is changing the competitive landscape  altogether in the profession. 

— Justin Adams, CEO, Aiwyn  

It is hard to say just one- there are many issues that accounting is currently facing, but I think the one that is most critical to solve is the current pipeline of talent that is coming into the profession.  People are the lifeblood of any organization, any profession.  Without new accountants entering the workforce, the profession is compromised- it will miss out on innovations for not just firms but also the clients we serve. 

— Michael Aiello, CEO & managing partner, Centri Business Consulting

Decisively adopting AI-driven technologies to their full potential is paramount to the challenges the profession confronts.  Firm leadership is not always open to this. As more transactional work becomes automated, accountants will need to develop different skills to apply their expertise to information and data generated from new technology and play a role in more of the business strategy.  AI will be leveraged as a co-pilot managing associated risk.

— Sona Akmakjian, global head of strategic accounting partnerships, Avalara

While most people think the biggest problem is staff turnover and retention, those  are symptoms of the real underlying issue, which is relevance. Neither the staff nor  the client sees the relevance of pure compliance work. Staff sees the work as filling  out endless checklists and spending hours ticking and tying numbers, and they do  not see the connection between those tedious tasks and the objective of the audit.  Minimal effort is made by leadership to connect these tasks to what these new  hires learned in their college accounting programs or to the objective of the audit.  In the back of their minds is the notion that the work they are doing will soon be  taken over by technology and AI. Young staff members, who manage their lives  with automations on their phones, may be frustrated that they are forced to perform  many tasks manually because their managers and supervisors don't know how to  fully use the automations already available in their software packages.  

Clients perceive our work as a commodity and make their choices based on price.  We have been complicit in the commoditization of our work because many firms fail to differentiate their work from the work of the audit firm down the street. In  the rush to complete the audit, most firms have no time to provide anything of  relevance to the client that could help them improve their businesses. We are not 

leveraging our business-mindedness to share with clients the insights we have from  working with other clients and from the knowledge base required to become CPAs.  

The result is downward pressure on prices, which means that firms need to make  up in volume what they are losing in fees. Team members are pressured to fill in  the same checklists and the same forms faster and faster, with little opportunity to  think about what they learned about this client's business and how it could relate to  the other businesses they have worked with.  

This continuous grind to get the work done quickly, the repetitive nature of the  work, the long hours of busy season that now lasts 12 months, and firm culture  which discourages innovation and actively disempowers team members, combined  with pay that is not always competitive results in fewer people entering and staying  in the profession. Online forums make this perception of the reality of being an  accountant readily available to prospective accounting majors and dissuades  students from entering the profession. This public perception also serves to  discourage current staff from seeking employment elsewhere because they do not  see that the grass is any greener anywhere else in the accounting world.  

Relevance de-commodifies the audit by connecting what the auditors see in a  particular client's business to what they have seen across other businesses to  provide ideas a client can use to improve their business. Relevance has a trickle down effect, and it drives the whole bundle. If you're providing relevant and  exciting work for your team, then the staff enjoys what they're doing, which  improves retention. When the client sees value in what you're doing because you  are providing relevant and useful ideas that solve business challenges, the client  will be willing to pay higher fees. Clients will see the audit not as a necessary evil  but as an opportunity to work closely with a business expert to improve their  business and to achieve their goals.  

— Alan Anderson, founder and president, Accountability Plus

Undoubtedly, the rapid advancement of artificial intelligence (AI) stands out as the paramount issue for the accounting profession. AI is beginning to influence a myriad of applications, enhancing the efficiency and effectiveness of tasks traditionally undertaken by accountants. The evolution of these tools isn't just limited to text-based interfaces; they are expanding to encompass voice, visual, and other interactive modes.

As these technologies continue to mature, they will profoundly alter how accountants engage with their work, clients, and government regulations. Although AI has been in the picture for decades, its recent developments have been accelerating at an unprecedented rate, catching many firms and their clients off guard.

We foresee a transformative shift in the tax industry. From both a technological and service delivery standpoint, the next decade promises drastic changes, far removed from the patterns and practices that dominated the previous forty years.

— Andrew Argue, CEO and co-founder, Corvee

The past two years have been a defining moment for the profession as a trusted advisor for businesses of all sizes. Although talent and managing complexity are clearly top issues, the evolution of the practice and services through technology advancement continues to be the greatest opportunity for the profession – and the best way to manage the talent and complexity challenges.

— Erik Asgeirsson, CEO & president, CPA.com

I think the most important issue facing the profession is double-edged: facing down the ongoing staffing/talent crunch, while strategically embracing AI benefits and efficiencies that will ultimately allow firms to do more with limited staff.

— Kim Austin, director, strategic accounting alliances, Avalara

I frequently observe businesses diverting their attention to finding solutions without a clear problem at hand. A pertinent example of this behavior is the current fascination with artificial intelligence (AI). Undoubtedly, AI has its merits, and it can address various issues while simplifying many aspects of our lives. However, before wholeheartedly embracing it – appointing a Chief AI Officer and shifting everything to AI – let's dip our toes in the water. It's essential to gain a deep understanding of AI, identify the specific problems it can solve, and gradually implement solutions one issue at a time.

Businesses should strive for a harmonious approach, avoiding overemphasis on trending concepts. We often become captivated by buzzwords, but the key is to maintain a stable focus on addressing the genuine problems that require solutions.

— George Azih, founder and CEO, LeaseQuery

I continue to believe it is relevancy. Baruch Lev's work proves this, and in his book, The End of Accounting, he writes, "Today's financial reports provide a trifling 5 percent of the information relevant to investors." This is a scant benefit for the amount of resources our economy spends on the audit function. The very people we claim to be protecting do not use our product. For that reason, I believe the profession should relinquish (or be stripped of) its audit monopoly, which would allow competition to bring innovations to the market. Auditing firms are not independent, because they should not be paid by the organizations being audited. Insurance companies should be allowed to offer financial statement insurance to stakeholders who desire it, and the stock exchanges should select and pay the auditors on behalf of their listed companies, as part of their branding and value propositions. No, this reform would not be perfect. But it should be compared to the status quo, not some utopian vision. It would definitely be an improvement over the unacceptable current system.

— Ron Baker, founder, VeraSage Institute

The need for increased efficiency, and more efficient practices in firms. 

As the talent shortage continues, and fewer people are choosing a career in accounting, firms are turning to becoming more efficient as a way to future-proof their businesses. 

Today, emerging technology such as generative AI, as well as AI and ML, have the potential to ease the talent gap. Automation of tax workflows driven by advancements in technology will help firms free up time so they can focus on what matters: supporting the success of their clients. In the longer term, this will bring the capacity to strategize, plan and pivot their focus to higher value work, and potential new revenue streams such as advisory services.

— Elizabeth Beastrom, president, tax & accounting professionals, Thomson Reuters

Convincing our next generation of talent that the accounting profession is the language of business and is critical to the future success of business. The number of students pursuing majors in accounting continues to drop significantly each year. We must take a multifaceted approach to this challenge:

1. Speaking directly to students at the high school and college level about why accounting is the language of business and an exciting choice for their futures.
2. Attracting new talent to the profession – through the work of the firms along with the CAQ and the American Institute of Certified Public Accountants (AICPA), we are working to make the profession more attractive to young people to increase the pipeline of talent.
3. Pursuing non-traditional majors and training them to do the work we need them to accomplish.
4. Pursuing qualified talent in other countries where there is not a shortage to augment our U.S. workforce.
5. Investing in productivity-enhancing technology aligned with our business strategy and supported by our processes to enable the people we do have to be more efficient.

While we must approach the challenge from all angles I outlined above, I honestly believe that there has never been a better time to be part of this profession. When the world feels unstable, and trust is at an all-time low—that's when we have a fantastic opportunity to shine. 
— Brian Becker, managing partner and CEO, RSM US

The most important issue currently facing the accounting profession is twofold. The sheer velocity of business and the way commerce is conducted today versus how it was five years ago is vastly different. Combined with a smaller workforce, we are striving to maintain the usual support to business models and the timely turnaround on financial statements. 

— Michael Bernard, VP, tax content strategy and chief tax officer, Vertex

The most important issue facing the industry is making it more attractive, attainable and accessible. Accounting needs a strong, more diverse talent pipeline to ensure the profession continues to play a vital role in supporting businesses of all sizes. People entering our profession need to know that they can grow and thrive. Overall, I believe we need to continue to make the accounting profession more accessible to all, starting with ensuring employees feel engaged and have a stake in their company's long-term success. It will take a multi-faceted approach to address this concern holistically, but for BDO, the ESOP is an important part of our strategy to allow employees to be part of something greater at the firm.

— Wayne Berson, CEO, BDO USA

As indicated above, the pipeline issue (shortage of new professionals entering the profession) is the most important and critical issue.

— Ken Bishop, president and CEO, National Association of State Boards of Accountancy

The opportunities provided by technology.  Financial information is already being consumed in a very different way and the rapid changes in technology will only continue to evolve that consumption.  As accountants, we need to take advantage of the opportunities afforded to us by the advancements in technology. While we do need to address the need for more accountants entering our profession, taking advantage of technology can mitigate some of the impacts we experience with profession-wide workforce shortages.  

— Joel Black, chair, Governmental Accounting Standards Board

Without a doubt, the talent pipeline and audit quality are the most important issues facing the accounting profession – and they are interrelated. 

Quality starts with the tone at the top and is realized through the work we do every day. We need a healthy pipeline of accounting students who choose to pursue their CPA license in order for the profession to produce quality audits for decades to come. 

We are proud of the role we play in the capital markets and the independence and objectivity we bring to every audit. Over the past decade, the Global EY organization has made significant investments in digital analytics, and that gives us a clear advantage when it comes to understanding the business issues of the companies we audit and identifying emerging risks. 

We, like others in our profession, recognize the need to take decisive actions to drive continuous improvement in audit quality.

Auditors at all EY member firms use the same audit technology, and they are evaluated against common quality objectives. They are all supported by regional Quality Network and Professional Practice professionals, and the EY Global organization regularly tracks audit quality indicators at each member firm. 

We continuously monitor our system of quality control and enhance our policies, processes and documentation when necessary. We analyze data about our audit practice to identify, manage and respond to audit quality risks. We also monitor external risk factors such as macro-economic trends that heighten fraud risks and risks associated with a company's ability to continue as a going concern, and we develop guidance and training to help our professionals address these and other challenges in their audits.

Over the past year, our leaders demonstrated their commitment to audit quality by performing an in-depth analysis of our audit practice to identify and address any impediments to consistent audit execution and position our audit practice for the future. We are acting on those recommendations and transforming the Audit practice by centralizing decision-making, standardizing processes and accelerating changes to drive consistent audit execution with agile operations.

We are implementing numerous significant changes this year that we believe will have a very positive impact on how we deliver high-quality, insightful and independent audits.

None of these efforts would be successful without a continued focus on our people and an ongoing commitment to building their skills and capabilities. That includes additional investments in learning and development to help them thrive professionally in a rapidly changing profession.

Globally, the EY organization is investing more than $1B in a next generation Assurance technology platform to facilitate trust, transparency and transformation as part of a sustained commitment to delivering high-quality audits and serving our stakeholders across the financial and nonfinancial reporting agenda. 

EY US has published an annual quality report since 2012 to provide investors and our other stakeholders transparency into our approach to audit quality and auditor independence. In it, we disclose a range of audit quality indicators and evaluate each year what would be most valuable to our stakeholders. We are committed to providing issuers visibility into what we are doing to drive audit quality.

— Julie Boland, U.S. chair and managing partner and Americas managing partner, Ernst & Young

Solving the capacity puzzle. Our profession is facing a talent shortage and challenges with the pipeline. Leaders must think differently about how they develop and leverage capacity. It requires a multi-pronged approach that involves sourcing, process improvement, technology/automation, and focusing on right-fit clients. We must also re-think our overall talent strategy beyond attraction, retention, and scheduling. It needs to consider team members' skills, career goals and interests, not just their availability in order to keep them engaged.

— Jim Boomer, CEO, Boomer Consulting Inc.

Business transformation…new technology, talent shortages, and automated processes are enabling and disruptive. Members of the profession who learn and adjust to these new opportunities will sustain success while remaining future-ready. Artificial intelligence and resource management are critical to the profession's ability to stay relevant. The focus is on leadership, talent, technology, processes, and growth. This requires major shifts in mindsets and operations. Firms tend to place too much focus on capacity and not enough on capabilities, automation, and innovation using unique-ability teams. A shared vision as to where firms want to be in 1-3-5 years is the foundation for the attraction of talent and clients, plus a strategic plan for resource management.

— L. Gary Boomer, founder, visionary & strategist, Boomer Consulting Inc.

The profession's willingness to embrace and understand the impact that AI will have on the profession. The impact that it will have on addressing all of those manual tasks in audit and tax that have been traditionally addressed by entry-level accountants. I honestly believe right now that our profession is underestimating the impact that AI will have in years to come.

— Jim Bourke, managing director, advisory services, WithumSmith+Brown

As a firm and profession, we have made significant strides in growing our relevance and the overall role we play in society. However, we're seeing the needs and expectations of users of independent audits continue to evolve and the information flow is growing increasingly complex. 

It's been two decades since the Sarbanes-Oxley Act passed, and the US has the most robust and trusted capital markets in the world. While I am incredibly proud of where we are today, there's more that can be done to increase confidence in the independent audit and the accounting profession to help the audit stay relevant for years to come. 

I have led PwC's multi-year process to enhance confidence. By taking action in areas of accountability, quality, independence, transparency and engagement, we can help support our audit quality efforts and continue delivering profession-leading quality results for our clients and stakeholders. 

— Wes Bricker, vice chair, Trust Solutions co-leader, PricewaterhouseCoopers

The dying interest of younger people wanting to be accountants. 

— John Briggs, founder, Incite Tax

Burnout is a pervasive problem due to all of the deadlines and demands bookkeeping, tax, and accounting professionals face from regulators, clients, and everything that goes with being an entrepreneur. Plus, there is the added pressure that we're still under, and trying to recuperate from, thanks to Covid.  

People are fleeing the industry due to these issues mentioned above. As practitioners we have been made responsible for collecting data on behalf of the IRS and we take on a lot of responsibility and liability. Clients are expecting us to be 100% correct all of the time which just adds to the pressure. If we don't fix this,  who is going to want to join this profession in the future?

The solution, in my mind, is to meet established professionals where they are and help them find a better way and a more peaceful path forward. This is essential to creating an environment that is healthy for current professionals and those who may be looking at the profession in the future. The 80-hour workweek cannot be a reality any longer and it certainly isn't efficient. The goal is to not be in the office all the time and still make more money, while delivering awesome service to our clients. 

We have allowed the client to dictate the relationship for too long and that has to stop. Often, it is the client creating issues  because we have allowed them to continue poor behavior. We have to make a change to regain control of our firms.

— Dawn Brolin, CEO, Powerful Accounting

Human capital management is the most important issue that the accounting profession is currently facing. The current dialogue leans toward pipeline, but I'd argue that it needs to be about much more. While the pipeline conversation is being driven by the supply and demand issues facing the accounting profession, we also need to be more intentional about how we're managing, developing, and optimizing the profession's current workforce.

The Great Resignation showed us that we have a highly mobile workforce that's not afraid of leveraging their backgrounds to explore new opportunities or reinventing themselves all together. That supports the notion that we need to be in tune with their needs, supply professional experiences that are relevant, and offer competitive salaries that ensure we retain the best and brightest. 

Over the last few years, there have also been incredible innovations that are changing the way the profession functions. This has made the work of CPAs more complex, which points to a need to upskill and, in some cases, reskill accounting professionals to ensure they're prepared to confront tomorrow's challenges. We need more people with the right competencies for the future benefit of the profession. 

We don't only need more CPAs; we also need more diverse CPAs. To meet that need, we must broaden our focus beyond the traditional channels. We need to strengthen our connections with Historically Black Colleges and Universities, Hispanic Serving Institutions, and other educational institutions with high numbers of underrepresented portions of the population. 

Getting diverse individuals interested in joining the profession is one thing. Helping them develop their skills and retaining them in the profession is another. And while asking them to prove their competence and commitment for the long-term is important, the profession needs to respond by doing more to prepare them for future success.

— Geoffrey Brown, president and CEO, Illinois CPA Society

Building and nurturing a strong talent pipeline to meet the needs of the profession and the public interest. 

— Jennifer Burns, chief auditor, AICPA

The role of artificial intelligence in the accounting community has caused concern, especially as some reports implied that AI could replace accountants. However, our data and anecdotes that I've heard firsthand from accounting professionals tell a different story. I'm seeing more and more accountants embrace AI as a supplement instead of a replacement. In fact, a survey we conducted earlier this year found that 82% of accountants say technology is creating more meaningful client interactions. We have also heard that the power of AI has helped automate low level tasks, so junior staff can uplevel their work faster - an important benefit as we have all seen the accountant talent pipeline dwindling over the last few years. 

— Ted Callahan, director, Intuit QuickBooks partner segment

The most pressing issue for the accounting profession is unequivocally the talent crisis, which stems from several pain points that I experienced during my days at EY. As a practitioner, I experienced first-hand the painful manual processes of the CPA profession, and I was able to identify several universal pain points that make advisory and audit work less attractive to top talent. I still hear these same pain points from our customers today, and I'm excited to be tackling these issues, such as the lack of technological innovation within the profession, long hours from repetitive manual processes, and a growing talent deficit. My goal is to give audit and advisory professionals back time by starting with a solution that delivers up to 50% efficiency gains. Our customers often praise Fieldguide for improving quality of life for their teams while simultaneously increasing capacity and margins. 

— Jin Chang, CEO and co-founder, Fieldguide 

Talent shortage – decreasing number of individuals entering the profession.  And as we're tracking the numbers, seems to be getting even more pronounced.  

— David Cieslak, EVP, chief cloud officer, RKL eSolutions LLC

The alarming lack of interest in the profession and the ongoing struggle to attract and retain talent continue to be the most pressing issues facing the accounting profession today. 

— Rhonda Clark, executive director, Association for Accounting Marketing

The most important challenge facing our profession today is creating capacity for growth, driven by our talent pipeline challenges and opportunity around new service lines.  So many opportunities are presenting themselves to our profession as a result of our experience, expertise, reputation and trust (e.g., how will we execute on the ESG opportunities presenting themselves, how will we "audit" AI), new technologies (e.g., how will we leverage new technologies, such as GenAI, to solve our capacity challenges) and talent (e.g., how will we reskill to adapt, utilize domestic and internal talent, increase and upskill our entry level professionals).  

— Susan Coffey, CEO, public accounting, Association of International Certified Professional Accountants

The pipeline into the profession remains our most important issue to address today; and, it is important to do so without losing momentum on DEI efforts. 

We have got to put in work to advance the pipeline of students choosing accounting, joining the profession and staying and advancing into leadership. And we need that pipeline to be diverse. 

There have been court rulings and bills that are counter to DEI and we cannot let that derail us. DEI is more important now than ever before.

— Crystal Cooke, director, diversity and inclusion, AICPA

The obvious answer is the pipeline problem but I think there is a deeper issue and that  is resistance to change. If we look to be innovative and not just go with the status quo  we can cultivate a profession that will be attractive to the next generation. Areas that I  feel we need to change are: 

1) Hourly billing.  

2) Concerns that we cannot function well in a remote work environment.

3) The idea that we need to help every client that comes to us. 

4) The fear of automation integration into our work environment. 

I feel as if we have such an intense fear of the short-term"pain" of change, that we do  not appreciate the long-term gains it brings. I get the impression that too many people  want to push change down the road to the next generation. We have to realize that  change is inevitable and embrace it, because if we don't, we might not have that next  generation of accountants to carry on the profession. 

— Randy Crabtree, partner, co-founder, Tri-Merit Specialty Tax Professionals

Unpredictability. Although staffing shortages dominate everyday challenges, other factors such as GenAI, mid-market consolidation, ESG and increased SEC audit inspections are not only creating complexity but moving us into uncertain directions and at a faster pace. 

— Gale Crosley, president and founder, Crosley+Co.

Relevance is the most important issue facing the accounting profession today.  I've had this written on the dry erase board next to my desk for about a year now, serving as a "north star" in my thinking.

Pipeline challenges are reflective of challenges to the profession's relevance.  Students are evaluating the whole package – the time and cost to become licensed, the nature of the work, the financial rewards, the work/life balance and the culture of the organizations.  When all of these factors are put together, students are making rational, market-based decisions to pursue other careers when they conclude "it's not worth it".  These challenges developed over a long period of time and aren't solved by quick or easy solutions.  Our profession is at a critical moment in its history where we are being forced to confront a broken model and redefine our relevance – we have to make it "worth it".  

At the same time, the services provided by CPAs are increasingly becoming automated or done by nonCPAs.  CPAs really are no longer needed to prepare 1040s, write checks, or foot columns of numbers in a ledger.  While both automation and nonCPAs are important and necessary parts of the profession's future, we need to clearly define what role CPAs will serve in the profession's future.  Service offerings such as systems audits, tax advisory, ESG, outsourced accounting and advisory all need CPA skill sets.  We need to figure out how CPAs can own these spaces.

CPAs bring trust and clarity to financial decision making.  We have an incredible opportunity to redefine that relevance now as things like technology reshape what communities, businesses and capital markets need. CPAs are needed to be strategic and trusted business advisors that leverage advanced technologies to make families and businesses stronger.  When we redefine the profession's value proposition, we will find that the pressure on talent attraction and retention can be solved, and the CPA license is protected into the future.  

— Jen Cryder, CEO, Pennsylvania Institute of CPAs

In the ever-evolving world of accounting, we're breaking free from outdated stereotypes that once defined us as "bean counters" or "paper pushers." Today, our profession is at the forefront of building shareholder confidence, advising prestigious companies, contributing to ESG initiatives, and uncovering bad cyber actors. However, the most critical issue we face is embracing and integrating emerging technologies into our practice.

The accounting profession is undergoing a profound transformation driven by technology. As AI, machine learning, and blockchain continue to disrupt industries, we must adapt and seize the opportunities they offer. It's essential to consider how we can seamlessly integrate these technologies into our work, coexisting with them, and riding the wave of innovation.

This challenge isn't just about keeping up with the times; it's about redefining our profession and enhancing the value we provide to our clients. By doing so, we ensure our continued relevance and effectiveness in a rapidly changing business landscape.

— Avani Desai, CEO, Schellman

Talent continues to be the most important issue facing the accounting profession — not only attracting top talent but also nurturing talent, giving them the skills necessary to keep pace with today's complex businesses and rapidly evolving areas of reporting. Specifically, technology and sustainability are transforming how the accounting profession provides confidence to the capital markets. 

In terms of technology, the accounting profession needs to adopt a digital and data-driven approach that keeps pace with the latest trends, like AI. At EY, we are ensuring our talent has access to cutting-edge technology and training, including EYQ — our own, in-house large language model that provides security for our business and our clients. We are also rolling out AI training to every one of our nearly 400,000 EY people worldwide. 

Equally pressing, the focus on sustainability reporting represents the most significant innovation to corporate reporting in decades. Building a talent pipeline with relevant skills in areas ranging from data analytics to accounting for greenhouse gases (GHG) will be critical in helping the profession stay relevant, agile and responsive. This requires collective action — including the need for accounting curriculum and standards to keep pace and for organizations to provide more training. EY is doing its part through our Badges program, which, like our AI training, offers all EY employees to become experts in evolving areas such as sustainability. In 2023, we announced our first class of EY employees who earned a fully accredited Sustainability Masters through the EY Badges program, in conjunction with Hult University — at no cost to our employees. 

— Carmine Di Sibio, global chairman and CEO, Ernst & Young

Transformation. Pressures from staffing challenges and the required approaches to address those (such as outsourcing), pressures from the market on the M&A and PE front and need to decide who they want to be (Compliance drive vs advisory) are just a few of the major influencing factors. It's taking up significant energy and its challenging leadership skills in every firm. No firm is immune to the impacts of these changes right now.

— Sarah Dobek, president and founder, Inovautus Consulting

Ordinarily, I would say technology, growth, and talent and these three are constants. We must embrace technology faster and faster to continue to earn our status as trusted advisor. Growth is non-negotiable. We can not afford to stay still when the pace of change is accelerating. To stay still is to be behind. High performing talent is critical to retention, high quality solutions, and innovation.  What perspective, input and feedback are missing from the strategic discussions. Yes, these are still true.  However, today, I think our primary challenge is our own self-awareness of how we can courageously face the opportunities to improve, agree quickly to where we agree but also be willing to compromise if the outcomes proposed get us to a similar place. It's the challenge what we think we know and be curious about what we don't notion that fuels diversity of thought and teamwork. Without this framework, I believe we will be challenged to make the strides needed to attract, retain, and advance amazing talent from many backgrounds. I have never hoped to be more wrong.  Either way, I am unwavering in my willingness to do my part. 

— Kimberly Ellison-Taylor, founder and CEO, KET Solutions LLC 

I believe the most important challenges facing the tax and accounting profession continues to be building a pipeline of diverse talent for the future and elevating the value the profession brings to clients and businesses. This requires taking a fresh look at the work tax and accounting professionals do and really digging in to define the value, which is greatly underrepresented and undervalued. Tax, for example, is exciting, filled with change and increased complexity. There are growing number of challenges and opportunities to do interesting work across jurisdictions both in the US and around the globe. 

As businesses have become more dynamic and global, their tax and accounting needs have become more complex. In addition, changes in laws, regulations, and reporting requirements have accelerated this growing complexity. To provide real value to clients, the accounting profession needs to leverage new technologies and bring new skills to the table, such as coding and database querying. The profession needs to be thinking about where they can automate repetitive tasks and eliminate low-value ones, while up skilling their talent, so more time is spent on informing clients and business stakeholders of key considerations and implications of their decisions. I believe this evolution in focus will empower tax and accounting professionals to deliver greater value and will ultimately make accounting a more attractive career option for students. This is the key as we are facing a record shortfall in the pipeline of students majoring in accounting in colleges and universities. 

We need to get creative on a grand scale in driving awareness of the accounting profession in high schools and make sure accounting is offered in the curriculum like it was at my high school. But it doesn't stop with recruiting; we also need to do a better job of retaining diverse talent by investing in their professional development and leveraging their new ideas and approaches, so they can lead us into this new frontier for the profession.

— Lisa Fitzpatrick, president, Bloomberg Tax & Accounting

The accounting profession faces a critical challenge in the form of a talent shortage. However, a more profound question looms: what will the future of accounting entail? Will it continue to focus primarily on public attestation, shift toward consulting, or evolve into a hybrid model? The scarcity of talent is compounded by the lack of clarity and enthusiasm surrounding the future of the profession. The advent of machine learning and artificial intelligence further blurs the lines, raising essential questions about accounting's role in this rapidly changing landscape.

— Lee Frederiksen, founder emeritus, Hinge

The accounting profession is at a crossroads, grappling with an overwhelming  number of challenges, notably the sheer volume of work and the capacity to  manage it efficiently. It's worth noting that this is not an isolated concern, as other  sectors, too, are feeling the pinch of similar challenges. The intertwined issues of  employee retention and the sustainability of workloads are critical, given the  demand for continuous output and precision. Additionally, the need to ensure that the profession retains its humanity, presents an image that resonates with young  professionals and meets the firm/organization's needs must be balanced. However,  on a brighter note, various organizations, visionary minds, and stakeholders are  coming together, forging alliances and creating innovative solutions to address  these challenges head-on. This collaborative spirit highlights the resilience and  adaptability of the profession, providing hope for a future that is both sustainable  and human-centric. I have been fortunate to have been invited to be part of these  thought-provoking conversations. 

— Denise LeDuc Froemming, president and CEO, California Society of CPAs

The pipeline!  In my opinion, no other issue is even a close second.  The shortage of accountants is an existential threat not just to the profession, but to the stability of the US financial system.

— Daniel Geltrude, CPA, founder & managing member, Geltrude & Co.

Technology and capacity…. I think many accounting firms have difficulty moving from compliance accounting to tax planning and they are being challenged by AI and Tech based companies looking to bring tech based accounting services to all small business owners at their expense…

— Julio Gonzalez, CEO, Engineered Tax Services Inc., The Growth Partnership, ABLE CRM for Accountants, Rosenberg Survey, Inside Public Accounting

Automation because it is changing the role of the accountant (for the better) and enabling efficiencies that were not previously attainable by firms of every size.  

— Eric Green, founder, Tax Rep Network

The most critical issue is balancing the needed business model change in the profession with the talent challenges so that firms continue to recruit strong talent, retain them, and attract the best talent and clients possible. Those firms who adapt will survive. Those who lag will continue to struggle. A focus on culture, technology, growth, and training is imperative.

— Angie Grissom, owner, chief relationship officer, The Rainmaker Companies

The need for greater efficiency. For in-house tax leaders, this is the highest of priorities.

With fewer people entering the profession and the continued challenge of recruiting talent, corporate tax departments are looking to implement more efficient practices to free up time for corporate tax leaders focus on the strategic value their departments can bring in big businesses.

Corporate tax departments are optimistic about AI's potential to boost efficiency and support future growth. It's no secret that long working hours is a serious challenge for tax professionals. AI use within the industry at scale has direct potential to address this burden, bringing productivity gains that could remove the need for excessive hours. AI could hold the key to solving some of businesses' biggest challenges by reducing the volume of administrative tasks in day-to-day work, giving rise to more fulfilling work for tax professionals.

— Ray Grove, head of corporate tax and trade, Thomson Reuters

The accounting profession is at a pivotal moment of transformation. Capitalizing on the moment is key to our profession's continued success. As the largest professional services organization in the world, Deloitte has a responsibility to be forward-looking and embrace new behaviors, new processes, new technologies, and new talent models around audit reforms, quality standards, emerging market issues, and expanded assurance services. There is tremendous opportunity with the emergence of disruptive technology such as Generative AI, and the new and expected regulations and disclosures related to climate and broader ESG matters which are creating measurable financial impact. As people are the most significant contributor to the future of the profession, we are laser-focused on preparing people to meet these generational, defining forces – creating an environment of continuous learning and collaboration, innovating around technology to focus people on high-value work, and championing the diversity of experiences and skills that will ensure our profession continues to thrive.

— Dipti Gulati, CEO, Audit & Assurance, Deloitte & Touche LLP 

The accounting industry is locked into cycles, like the monthly close, quarterly financial reporting, and annual audits. The problem with these cycles is they only provide point in time, after the fact visibility and assurance, limiting businesses from making confident, real-time decisions. A more immediate issue is the productivity lost to these cycles exacerbates the shortage of trained accountants. 

Imagine a world where business leaders have real-time, trusted information about their organization's financial performance. My vision for AI is to further propel the industry forward into one that provides real time strategic leadership to businesses, where cycles like the monthly close are a thing of the past. 

— Aaron Harris, global CTO, Sage

Relevancy. Every single issue we struggle with, from "pipeline," to diversity, to salary levels, to equity and inclusion, to sustainability, to the 120 versus 150 hour debate, to those choosing to leave accounting entirely, and even declining memberships are all affected if not driven by relevancy. We simply haven't done a great job of telling the stories of how amazing and fun (yes, fun) a career in accounting can be. And, we haven't really leaned in hard enough to ensuring that we stay future focused on our profession. What may have worked well when I became a CPA in the 90's would be considered silly today. And while you mention the most important issue, I do see starting salaries as a very close second. It's impossible to convince a young professional to be to join the accounting profession, let alone become a CPA, when they see how they can make more money, with fewer years in school, and a supposedly better quality of life. The good news is whether you think "relevancy" or "starting salaries" is the bigger issue, they are issues that the profession can actually change, if it truly has the will to do so.

— Calvin Harris Jr., CEO, New York State Society of CPAs

Work-life balance is having a major impact on the profession. As we've seen a decline in the number of people entering the profession, I believe we can attribute it to the next generation being unwilling to work the long hours accounting has historically encouraged. We've also seen tax and accounting professionals begin to feel the effects of burnout from the lack of balance. We're going to see more and more firms facing a reckoning: either shift how you run your firm to prioritize balance or continue struggling. 

— Roger Harris, president, Padgett Business Services

The fusion of ESG criteria and sustainability within business and the accounting profession's opportunity in that space is tremendous. With the new ESG regulations around climate disclosures, from global EU rules to the federal SEC proposed rules to the currently pending state of California legislation, it's not a matter of if climate reporting on financial documents is going to happen, but when. It is an outstanding opportunity that the accounting profession can lose if we keep sitting on the sidelines. We need to train on skills like carbon accounting and learn the basics of sustainability in business to help our clients identify key risks and opportunities that are material to their businesses. A swelling number of non-accounting sustainability consulting firms are ready to take on the business if we let the ball drop.

— Jennifer Harrity-Cantero, director, Sensiba Center for Sustainability

Staffing and structure – which is my same response from last year. While we continue lean into technology and outsourcing as part of their pivot to the staffing challenges, the staffing challenge still remains. For those who have been aggressive with these other pivots, the staffing issue starts to take on the form of how the team is structured, and what roles are being played. The structure piece has had some highlighting this year, with the BDO restructure as a large scale example.

We are also seeing the structure element of the staffing challenge play out with the influx of VC funds, and firms separating out their assurance business to continue and grow in the advisory opportunity. It all comes back to having the resources – but in the right place and doing the right things – for the sustained health and growth of the firm. 

— Will Hill, owner, Will Hill Consults

Upskilling and reskilling.

— Tom Hood, EVP business engagement & growth, AICPA

Most people will point to the talent pipeline. I think it's a step deeper if we really want to get to root cause of the issue and identify the opportunity to turn it around. The most important issue today is identifying and understanding the key value proposition CPAs can bring to their clients – both organizations and individuals. And it goes so far beyond the basic compliance work of tax returns and financial statements. If we can get more CPAs to understand their value and the opportunities to provide guidance beyond the traditional compliance work it will open the floodgates of opportunity – for their firms, for their team members and for future accounting professionals to see the wonderful career opportunities that are present. Advisory is a term thrown around loosely these days so truly identifying services and packages that enhance / bolster the compliance work as well as new consulting offerings will continue to help differentiate the value CPAs can bring to businesses. And there's a lot more fun in that type of work, along with higher fee potential, when we can go beyond just the compliance. And it starts with genuine curiosity for clients and wanting to see them succeed. When we gain momentum in the business world for offering more value than just the compliance, it will attract more talent. We have to get to that root cause.

— Dustin Hostetler, co-founder and visionary, Transformity Solutions

Getting the communication out about this wonderful profession to the next generation of accountants and CPAs is of profound importance. It's crucial to tell positive messages, inform them about the many business problems they will be solving in these roles and explain the benefits and pathway to earnings that this profession provides. 

— Aiysha Johnson, CEO and executive director, New Jersey Society of CPAs

The understanding, adoption and use of artificial intelligence – specifically in ways that it can automate rote tasks to free up capacity for busy practitioners. This helps solve a lot of the talent supply issues and, I believe, will also make staff more satisfied in their roles. 

— Kacee Johnson, VP, strategy & innovation, CPA.com

The most important issue is understanding how to securely leverage artificial intelligence to improve client service and overcome the talent shortage. The talent shortage seems to be easing somewhat. I'm convinced that soon, there will be a notable difference between accountants who use AI and those who don't. The results of an AI prompt must be considered, to ascertain if they are factual or correct. The assistance provided by AI will allow skilled accountants to generate potential solutions faster and easier so they can focus their talent on solving more complex problems. Copyright infringements and a lack of creativity in the solutions suggested are among some of the issues.

Providing services of all kinds, from tax to audit to advisory to analytics, will become easier in the coming year from AI assistance. AI assistance should drive down the labor required to provide the services. It will take firms a while to adapt to the new methodologies, which may take more than a year. Further, controlling client confidential data will remain a challenge on most platforms.

— Randy Johnston, CEO and founder, EVP, NMGI and K2 Enterprises

The importance of financial accounting and reporting as an unbiased reflection of performance shouldn't be lost or skewed in the achievement of other goals. There are a lot of "shiny new toys" out there, and there will be an important role for the accounting profession to play as non-GAAP information evolves, but the core work of providing a fair, unbiased reflection of performance will always be paramount.

— Richard Jones, chair, Financial Accounting Standards Board 

There is a greater need for trust and transparency across Corporate America. And the need grows every day. It is a milestone moment for our profession. We're hearing it in conversations with clients and the markets are demanding it. As CPAs, we have the skills to help meet this demand. It's our opportunity to grow our profession, influence business and drive our relevance. We have the core capabilities and can help. 

But, we need the talent. Our profession and scope is growing quickly. Our talent pipeline needs to match it. We must be intentional in driving the narrative of the important role we – CPAs – play so we can continue to grow. 

And we need to continue investing in the professionals already committed. The role of a CPA has evolved. We need to upskill (always), so we are ready for the growth we are seeing. Learning will always be part of the journey. We've gone from an abacus to calculators, from ledgers to excel, and now we're seeing emerging technology and generative AI. 

— Kathryn Kaminsky, vice chair - Trust Solutions co-leader, PricewaterhouseCoopers

The talent pipeline. There are fewer students enrolling in accounting at the undergraduate level. For those who graduate, fewer are going for the CPA exam.

— Wassia Kamon, founder, BeyondCertifications.com

Once again, I see that staffing continues to be the most important issue with significant firm time being spent trying to figure out how to get all the work done including the use of outsourcing, technological automation, firing non-"ideal" clients, and proactively transitioning "rote" work to expanded administrative staffing.

— Roman Kepczyk, director of firm technology strategy, Right Networks

Of course, talent, but in particular, I worry about our education systems and training programs, at a macro level, evolving fast enough to equip professionals with both the accounting and technology knowledge that they need. I believe the largest public accounting firms play an important role in pushing forward the profession, but I also believe that the mid- to small firms play an important role in serving a client base that is uniquely benefitted by the size and structure of those firms. So that all firms and the clients they serve can evolve and thrive going forward, we need a critical mass of these professionals who really understand the technical aspects of accounting, the critical nature of quality management in the work that our profession owns, AND the ways that the latest and best tools can be used to add efficiencies, deeper insights, and even greater assurance. 

— Courtney Kiss, president, Association for Accounting Marketing 

Its antiquated business model of selling time, specifically the use of the timesheet. It (the time based model) is the root cause of almost every other issue including but not limited to the dearth of folks with accounting degree who do not pursue careers in public accounting and those who are now leaving public accounting. Ask any of those who have left about the timesheet and they will tell you the HATED it!

— Ed Kless, meta consultant, Sage

Our permission to operate and innovate for our clients can quickly be diminished if we lose the trust of our stakeholders. Therefore, we must continue to demonstrate integrity, professionalism, and quality in all that we do. Today, embracing new technologies and embedding AI responsibly across our business will transform our operations and create exciting career opportunities for our people, as we continue to reimagine how we work and develop talent while maturing ESG strategies to drive sustainable growth. 

— Paul Knopp, chair and CEO, KPMG LLP

Finding a better way to recruit, retain and grow future talent/leaders within the profession.

— Allan Koltin, CEO, Koltin Consulting Group

With interest in joining the accounting profession dwindling, I believe it's critical to bolster talent acquisition and retention efforts. Our recruiting team is tackling this issue by increasing the number of colleges where we recruit, enhancing our internship program, and expanding our diversity recruitment. Additionally, we are focused on developing engaging experiences for team members through learning and development opportunities and bringing in experienced leaders who can support talent development and the expansion of segments and specialty services. Technology will also pay a key role in bringing alignment between the supply and demand of professionals.

— Richard Kopelman, CEO and managing partner, Aprio

Perception that it is not an exciting, rewarding, or financially lucrative career path.

— Art Kuesel, president and founder, Kuesel Consulting

We consistently hear about the difficulty of attracting and retaining top talent from our accounting partners, which puts immense strain on teams, and also impacts the future of the accounting profession. I firmly believe that technology can play an important role in helping accounting teams navigate this, as well as empower them to succeed even when they face this challenge. In addition to technology, I've also admired the steps taken by many accounting leaders to mitigate the impact of staff shortages, including through  well-being initiatives, workflow improvements and digital transformation to help accountants meet demands sustainably.

— René Lacerte, CEO and founder, Bill

The most critical challenge to the profession today is talent acquisition. As with any profession, there are many that are retiring or will be retiring soon – it's important that we attract fresh faces to the profession through outreach and education. One area that the AICPA has strongly advocated for is legislation that would designate Accounting as a STEM curriculum due to its strong connection to math and technology innovation. 

— Melanie Lauridsen, VP, tax policy & advocacy. Association of International Certified Professional Accountants

Without a doubt the most pressing challenge facing the industry is the declining pipeline of new accountants. Over the past several years, I've met with hundreds of high school and undergraduate students who are full of ambition and enthusiasm but don't see accounting as a fulfilling career path both because of a negative perception of the work, and the added financial and time commitment needed to fulfill the 150-credit hour requirement for the CPA exam. 

Through our investment in technology, our partnerships with student organizations and other programs, we're actively seeking to engage with students to show them additional pathways to a successful career in Accounting, Technology and Finance.

This past summer, in collaboration with Future Business Leaders of America (FBLA), CLA hosted its inaugural internship program for 60 high school students in 15 of our office locations. This experience was extremely exciting as we had an opportunity to show students early in their careers, what's possible in the future.

Our interns were phenomenal – they immersed themselves into learning about tax, audit, wealth advisory, forensics, cybersecurity, and digital/AI. Feedback from every office was that we learned as much from them as they learned from us. It's crucial that we listen to students' ideas, to understand their priorities and to be receptive to change. This is the future of the profession. This is how we ensure sustainability and transform the profession for the better.  And, it's different than in the past – we need to recognize that. 

— Jennifer Leary, CEO, CliftonLarsonAllen

I fell into the trap of believing it was staffing because that was so obvious and while it is vital it's just a driver to the real problem. The biggest issue is the inflection point firms are facing. Leadership is aging, succession is challenging, investments in artificial intelligence, the need to offshore, and the development of advisory services is becoming too challenging for firms to do on their own. This is leading to an inflection point forcing firms to make tough decisions on their future to remain independent or to become part of a larger entity to sell all of some of their equity to private equity or another outside investor group. 

— Bob Lewis, president, The Visionary Group

Talent is the obvious answer, but I view the core issue as misinformation. Firm values are changing constantly in the M&A market, workflow and firm culture philosophies differ greatly between accounting organizations. Many professionals in the accounting world are getting either misguided or inaccurate information about the state of the profession and how to adapt to the changing landscape.

— Doug Lewis, director, The Visionary Group

I said the same last year, but without a doubt, one of the single most important issues facing our profession is talent. For us to be successful as a profession we need to attract the best and brightest, most inquisitive minds. Media attention on the declining number of CPAs in the US, and the state of inclusion within the profession, receive significant attention.

As part of solving this challenge, we need to keep our fingers on the pulse of students. This is a complex challenge and it won't be solved without talking to the very people we want to join us in accounting. Independent research was conducted to help inform the launch of Accounting+: what are students seeking in their careers and what motivators might encourage them to pursue accounting? Research underpins our effort and continues to inform whether or not we are headed in the right direction. Having a mechanism to measure incremental progress is vital to making sure we're creating the right opportunities for the future of a diverse accounting pipeline. We continue to conduct research to understand the evolution of career priorities for students, and to better understand barriers they face. With this knowledge we can do a better job of providing them with the resources they need to pursue accounting.

— Julie Bell Lindsay, CEO, The Center for Audit Quality

Attracting, retaining, engaging, and developing talent to our profession is the most important issue. While talent can be named as one issue, it is multi-faceted and requires a multi-faceted approach to ensuring that we are creating a profession that is appealing to NextGen – providing competitive salaries, innovative uses of technology, creative capacity solutions, and smart ways of working – and creating a sense of belonging by welcoming new ideas and embracing change that young talent want to see in the organizations they work and that partners would like them to some day own. 

— Tamera Loerzel, partner, ConvergenceCoaching LLC 

Brain drain. If the "Great Resignation" has taught us anything it's that organizations cannot afford to be single threaded in any function. When only one person understands, for example, how you set up your tax systems or meet your monthly filing and remittance obligations, you are one resignation away from disaster. Even if you can't afford to source multiple people to a given task, creating thoughtful documentation on how those tasks are completed is relatively cheap.

The second is how we choose to adopt generative artificial intelligence and machine learning in our practices. Do we use it to make our lives better by removing boring and repetitive tasks and enhancing our own creative abilities or do we give into temptation and attempt to use it as a shortcut to deliver what will be, at best, mediocre and at worst, incorrect work product.   

— Charles Maniace, VP, regulatory analysis and design, Sovos

Over the last few years, the big topics have included staffing and cybersecurity.  And while those topics remain of significant concerns to the Profession, they have been overtaken by the development of Artificial Intelligence (AI).  AI will be playing a significant role in staffing and cybersecurity.  First, as AI is implemented into Tax world, the area I am most familiar with, we will be able to use it to not only enter pertinent data, but also analyze the results and offer potential tax savings.  With all levels of implementation of AI, we cannot neglect the associated cybersecurity risks. This will require us to bolster our firm security in areas not yet known or understood.

— Stephen Mankowski, co-chair, National Tax Policy Committee, NCCPAP

The accounting industry continues to undergo a significant shift, driven by changing economic conditions and rapid advancements in technology. As a result, one of the most critical issues currently facing the accounting profession is the need for firms to acclimate their business to the rapid adoption of cloud-based tax, audit, and firm management solutions. Firms must mitigate an uncertain environment by investing in platforms that deliver high availability, lower cost for backup and disaster recovery, business continuity, remote workforce management, and business agility. As subject matter experts, we help firms navigate this uncertainty and transition their technology footprint to take advantage of the efficiencies in the cloud. 

Further, the accounting profession continues to face an increase in regulatory complexity. Yet, the underlying macroeconomic realities such as labor shortages, talent attraction, and global inflation has implications for firms and their clients, from managing the growing regulatory impact to more effectively managing risk. New Federal and State tax regimes further complicate tax compliance and return preparation, and significant changes in auditing standards will add complexity and new processes. 

— Jason Marx, president & CEO, Wolters Kluwer Tax and Accounting, North America

Diversity is the most important issue facing the accounting profession because it is essential for its sustainability and success in the global economy. Having a diverse and inclusive workforce can bring many benefits to the profession, such as enhancing creativity, innovation, problem-solving, client service, and reputation.

Diversity can also help the pipeline and the CPA designation by attracting and retaining talent from different backgrounds, perspectives, and experiences. According to a study (Deloitte and other), diverse teams are more likely to perform better than teams that lack diversity in terms of productivity, profitability, and customer satisfaction. Moreover, diversity can help meet the needs of a changing market that demands more services and solutions from CPAs. We need a profession in which everyone can see a place for themselves. Diversity makes our profession stronger and enables us to meet the needs of the public we serve.

However, diversity is also a challenge for the accounting profession because it still faces significant gaps and barriers in terms of representation and inclusion. Some of the factors that contribute to this situation are bias, discrimination, lack of mentorship, or limited access to education and opportunities. These factors can affect the career development and advancement of certain groups, such as women, racial/ethnic minorities, and other groups. I have no doubt that it's through greater diversity of thought, perspective, and experiences that we can help our profession achieve even greater things. My story is proof of that.

Therefore, it is imperative that the accounting profession takes action to improve diversity and inclusion at all levels and stages. Some solutions are:

• Mentoring and sponsoring diverse talent. 
• Training and educating staff and leaders on diversity and inclusion topics. 
• Recruiting and hiring diverse talent from different sources, like HBCUs.
• Advocating and supporting diversity and inclusion initiatives within and outside the profession to create a positive impact.

These solutions will not only benefit the profession itself but also its stakeholders and society at large. Diversity is indeed the most important issue currently facing the accounting profession. I also believe increasing diversity will also help our pipeline challenges.
— Anoop Natwar Mehta, immediate past chairman, AICPA & Association of International Certified Professional Accountants

The most important issue is staff recruitment, training, retention and work conditions. While each of these is a separate issue, as a whole staff issues, in my opinion, is a neglected area when it should be the top area of concern. I also speak to many partners and read numerous articles and am perplexed and frustrated that meaningful actions are not taken to remedy the situation.

Recruitment: Starting salaries have not kept up with overall business conditions and I do not believe they have remained competitive when about 15 years ago they were at the top of the curve. This can be easily corrected by firms increasing their starting salaries. Many refer to the added 30 credits as a hinderance, but I don't believe this is a more important objection than the lower starting salaries being offered. Staff recognize having master's degrees as an enhancement and making themselves more valuable and they feel good about it…after they get their degree.

Training: Training is a significant area and is done by many firms and particularly smaller practices as a cookier cutter obligatory process and are not focused on the staff person's responsibilities and expected work assignments. Firms send staff to available CPE when they should be developing customized inhouse CPE either in their firm or in partnership with similar firms or through their state society committees. [I've done all of these and this works.] Firms also need to become a training organization using error disclosure as immediate training opportunities and deliberate on the job training, by everyone in a supervisory position. The firms' cultures have to be to train and develop. In conjunction with this all supervisors need to be trained on how to train.

Retention: Turnover is terrible. Last year a Big 4 firm that had a 25% staff turnover was voted one of the top 100 best places to work. A totally spurious "award." Many firms neglect "marketing" the benefits of working for them and take the present staff for granted. Retention needs a deliberate effort by every supervisor, manager and partner or owner. It needs work and it will pay the best dividends. This effort might not stop a person from leaving, but it likely could retain them for an extra year.

Work conditions: Tax season hours are untenable at most firms while some larger firms continue tax season conditions after tax season ends and add mini periods of extended hours. In my own informal and unofficial exit polls, most people provide as the primary reason for leaving a lack of work/life balance. I know people from top 10 firms that leave public accounting for reasons that indicate a complete noncompliance by their employers with the stated "favorable work/life and caring atmosphere and culture" of those firms. Total lack of attention to this.  

— Edward Mendlowitz, emeritus partner, WithumSmith+Brown, PC

The most important issue facing the profession is the need for firms to transform their business models and value propositions to clients in the face of rapid technological advancement and increasing competition. Technology has the capability to automate nearly all compliance-focused work, which in some cases may currently represent up to 50% or more of a firm's servicesEmbracing a digital mindset and focusing on adding holistic advisory insights with every service will be critical to ensure the profession maintains a strong value proposition  over non-traditional competitors. Technology is no longer simply providing firms a better way to do "the same things" more efficiently, it is fundamentally changing the day-to-day work that accountants need to perform to meet evolving client needs. Change leadership will be critical for leaders to guide their organizations through this 4th Industrial Revolution.

— Kalil Merhib, VP, growth & professional services, CPA.com

New research found that eight in 10 CFOs reported a talent shortage in accounting roles, after more than 300,000 US accountants and auditors left their jobs in the last two years.

This shortage poses a significant challenge for firms as there is a high demand for qualified accountants but a limited supply of skilled professionals available. I believe a career in Accountancy is a fantastic, I am a super proud accountant and I regularly talk about this at network events and LinkedIn. Accountants play a critical role in our economy. 

— Elona Mortimer-Zhika, CEO, IRIS Software Group 

I think that assurance services for sustainability reporting are a major issue for the accounting profession at  this time. Just as CPAs have jurisdiction over certified audits, I think that sustainability assurance services  should fall solely within the domain of services provided by CPAs. I feel an urgency that, as a profession,  we need to claim these services. 

Moreover, the accounting pipeline is also a concern. However, as a long-term accounting educator, I am  hopeful that enrollments will rebound post-pandemic. I am currently collaborating with Calvin Harris, CEO  of the NYSSCPA, to organize visits to local high schools with the support of local firms and chapters to  promote the accounting profession. 

— Tracey Niemotko, associate professor of accounting, chair of the department of accounting, graduate director, Marist College 

Employee development and retention. With fewer people entering the accounting profession every year, we need to transform the work itself. Some are concerned that automation will eliminate our profession–I believe these fears are unfounded.

To attract and retain good people, we need to elevate what we do on a daily basis, while improving work-life balance throughout the year. Technology is an important component and it really needs to step up its game to support the profession in this transition.

— Ane Ohm, co-founder and CEO, LeaseCrunch

The most important issue we are facing is one of talent.

While the public often sees our profession as a numbers profession, we are really a people profession - the translators of complex information that drive decision-making and enable prosperity. 

We are at an inflection point in the profession driven by the convergence of trends in demographics, technology, and ever-increasing regulation. With the pace of change, the who, what, and how of the profession is changing, and it should. But our Why, to protect the public interest and serve as trusted advisors shouldn't. 

With the increasing demands placed on the CPA profession, it is easy to lose sight of the real why and purpose behind the important, purposeful and, yes essential work it does. And if we ourselves lose sight of our purpose, how can we expect the next generation to see it and want to be a part of it? 

Of course, this in and of itself, will not solve challenges in accounting enrollments, the number of CPA candidates, or the retention of talent. It is an AND alongside the review of structural hurdles and educational and business models. But it is an important AND that every CPA can get behind as we push the flywheel toward a better future. 

— Rebekah Olson, CEO, Maryland Association of CPAs

• Maintaining relevancy when 90% of the market value of a typical S&P500 company is no longer represented by the tangible assets on its balance sheet. Supporting the profession with understanding how to incorporate multi-capital perspectives into measurement, management and reporting, especially of so-called intangible assets, is a growing priority. 
• Transforming organizations in response to net zero commitments. 
• Responding with urgency to the climate crisis. 
• Restoring trust in business, which has been badly damaged by a succession of corporate scandals over the past twenty years. 
• Restoring trust in the audit profession, especially when national regulators shine a bright light on audit failure. 
• Serving the public interest above the interest of the shareholders of the companies they manage or the partners in the audit firms who employ them.
• Sustainability. There have been five major developments in the history of accountancy: double-entry book-keeping (C16), overheads accounting (C18), standardization of financial statements (C19), the balanced scorecard (C20), and international accounting standards (C21). We now stand on the cusp of the sixth major development: sustainability accounting, perhaps the greatest development and opportunity for the profession in more than a century.   

— Jeremy Osborn, global head of sustainability, AICPA & CIMA

Our research shows that more than 90% of accounting firms and internal audit departments continue to cite hiring and retaining skilled accountants and auditors as the fastest-growing challenge. Specifically, when retaining talent, more than 85% of accountants and 90% of auditors said it is either somewhat or extremely difficult. Fewer students are choosing to study accounting at university and it's increasingly difficult to retain qualified talent also. 

I think it's actually a great time to be a part of the profession. It's rewarding work. You have the chance to specialize or opt to have a variety of clients. In addition, roles typically command good salaries, offer growth potential and can prepare you for executive roles too. 

The areas of accounting and auditing continue to transform and technology underpins future potential, by providing greater insights. It goes beyond the numbers. Today the focus is on the 'why' behind the numbers - leveraging data to drive powerful insights. Those working in accounting firms and audit departments have the opportunity to take these insights, identify trends and become a trusted advisor to their clients. 

— Dave Osborne, CEO, Caseware International

Competition from outside that too many firms don't even see as a threat to the work that they do. Not all of our competition is other CPA firms. It may be other types of consulting businesses or even technology companies. We can no longer bury our heads in the sand and not pay attention to what's going on, or we'll miss out and be a disservice to our clients. 

— Jody Padar, VP of tax strategy & evangelism, April  

The most critical issue currently facing the accounting profession, from my perspective, is the need to transition from a historically retrospective and compliance-driven approach to a real-time, value-driven one. Many small businesses have struggled to derive strategic insights from accounting, as it has primarily focused on after-the-fact compliance like tax filing or investor reporting. This challenge is particularly pronounced for low-margin businesses requiring real-time visibility. 

— Sugam Pandey, CTO, Docyt 

Talent shortage and the rise of AI - both are equally important. 

• Talent shortage has made even smaller accounting firms leverage globalization and technology more than ever. 
• The rise of AI has been a tough challenge for accountants to navigate as it is difficult for accountants to predict how AI will get infused into the software solutions accountants commonly use and how it will impact their future.  

— Hitendra Patil, president, global finance and accounting services, Datamatics Business Solutions

Pipeline and branding – go together since our brand plays a major role in attracting or deterring the growth in pipeline for future generations.  As noted above, the CPA profession is more than traditional audit, tax and long hours – and it is our duty, as CPAs, to help grow the brand of the profession in a positive manner.  

— Paul Perry, member, risk advisory and assurance services practice leader, Warren Averett

As succession planning takes center stage today, naturally, we are interested in showing students how great a career in accounting can be. I want to show students the incredible earning potential the profession has – and you don't even have to join a large firm to achieve this. Partners at small firms across America are running operations that provide invaluable services to their local and regional clients, and there is no shortage of work, so the rewards are plenty. Declining interest in the profession by young high school and college students is merely an effect of not enough education around how liberating and exciting careers in accounting can be – so we need to address that. 

Firms also need to do their part in attracting the best young talent by routinely working to improve their recruitment efforts, and making starting salaries extremely attractive when compared to other professions. 

— Carl Peterson, vice president, small firm interests, Association of International Certified Professional Accountants 

Finding enough qualified staff continues to vex many firms, but more concerning is the continuing decrease in number of students who enroll in accounting courses in college. 

— Scott Peterson, VP of U.S. tax policy and government relations, Avalara

There are tens of thousands of small firms in our industry that are struggling and at risk of staying in business.  They are overworked, underpriced, and can't staff their firms, despite rising demand of the services offered by local accounting firms. 

At the core of this issue is not talent.  It's the fear of pricing appropriate to the value delivered by the firm.  And the consequence of that reluctance to get the price right makes it impossible to hire talent. The owner is left doing most of the work.  They are overwhelmed and face long odds of selling the practice.  

This is happening in every community accounting firms exist.  It's the unique problem Padgett solves for small firm owners and I'm proud to help our 170 owners in US and 100 in Canada get the business-side of running a tax practice right, so they can grow, have success running a business, and retire on their terms.   

— Jeff Phillips, CEO, Padgett Business Services

We need to upskill the profession and our future members in a way that goes beyond where the current college curriculum takes them… that means developing human intelligence skills like team building, leadership, emotional intelligence, and more. 

— Anthony Pugliese, president & CEO, Institute of Internal Auditors

Clearly, the diminishing availability of talent is causing CPA firms to pursue alternative means of providing services to their clients. Access to offshore and domestic outsourced talent is helping. Technology is filling in for human-based resources. Increasing numbers of non-accounting professionals are being hired by CPA firms. It remains to be seen how the lack of talent will affect the profession in the long run. Small firms which cannot as easily access these solutions are struggling the most with this issue.

— Terry Putney, managing director, Whitman Transition Advisors LLC

Simply put, the staffing shortage. 

The absence of an adequate talent pipeline has compelled many firms to formulate a response to workforce demands for improved work-life harmony, increased flexibility, and more significant investment in career development. 

But there is more work to do. Firms must adopt strategies to reduce burnout, improve pay (particularly at lower levels), better leverage technology, and cull poor-fit clients.

— Kristen Rampe, managing partner, Rosenberg Associates

I believe the most important issue facing the accounting profession is growing the pipeline of profession. This issue is followed by maintaining our relevance a business leaders and trusted advisors and Diversity, Equity, and Inclusion with the profession.

— Okorie Ramsey, chair, AICPA & Association of International Certified Professional Accountants

I feel the CPA pipeline is the most important issue facing the profession today.  If we can't continue attracting the best and brightest into the profession, it will be difficult to replace those who have left or will be leaving in the next few years and meet the increasing, and changing, needs of the marketplace, ultimately causing harm to the public interest.  For the profession to remain strong and vibrant, it must be adaptable to meet those changing needs and remain relevant, thus continuing to offer exciting professional opportunities for our young people.

— Rick Reisig, chair, NASBA

In my opinion, the most important issue currently facing the accounting profession today is the labor shortage. Around this time last year, Deloitte reported that 82.4% of hiring managers were struggling to find accounting and finance talent, leaving less than 20% with qualified and ready candidates in the pipeline. Further, the number of students taking university courses and professional exams has tumbled in the U.S. — leaving the long-lead candidate pipeline in jeopardy for all. One of the key ways to remedy this is the reframing of the profession and each business. Many accounting firms and departments have been more reticent to change than their broader tech and software counterparts, which isn't doing them any favors with regard to recruitment and retention. Further, when applicable, outsource the work that isn't appealing (e.g., data crunching and compliance) so employees can focus their time on more strategic initiatives that tap into the creative and/or problem-solving portions of their brains. This will go a long way with employee satisfaction and, ultimately, pay dividends for companies.

— Ben Richmond, U.S. country manager, Xero 

Disenchantment with the profession: continued work compression, fewer people to do the work, too many customers-per-professional creating burnout, and lower pay than other professions.

— Michelle Golden River, owner/president, Fore LLC

Automation and the use of artificial intelligence (AI) are the accounting  profession's most impactful advancements in the foreseeable future. But many are  trepidatious about AI and unaware of its potential to take their businesses to the  next level. Across the profession, there needs to be a committment to knowledge,  transparency and ethics regarding this powerful and rapidly evoloving technology.  This will enable accounting professionals to identify areas where it can deliver the  most value and gradually expand its use to reap the benefits of enhanced business  operations, strong client relationships and increased profits.  

— Darren Root, chief strategist, Rightworks

All the following, which are heavily interconnected:

• Dire shortage of labor with no end in sight.
• Difficulty getting staff to return to the office.
• Partners' frustration level is at all-time high due to the above.  Their skyrocketing income in recent years has not eased their pain.

— Marc Rosenberg, managing partner and founder, Rosenberg Associates

Finding, training and retaining talent is going to be an issue in the profession for many years to come. 

— Bonnie Buol Ruszczyk, president, BBR Cos. and Accounting MOVE Project

Relevance. Accounting is the foundation of business, and the role of the accountant is critical to any organization. As business continues to evolve, transform and scale to respond to our ever-changing world, it's on us to lean in, fulfill our purpose and serve organizations in emerging areas. We need to understand the range of pressures an organization is facing—from stakeholders, the capital markets, regulators and so on—and adapt to serve clients beyond core financial and tax areas. This includes areas like climate, AI, cybersecurity and other non-financial areas. We know our core capabilities will be critical in underpinning a business' efforts to build trust and deliver sustained outcomes in these areas. 

As we expand to meet the needs of business and the capital markets, we need talented professionals. This means growing the pool of candidates within our profession, and then attracting, retaining and upskilling our people. While our profession is rooted in numbers, and business is our language…people are our heart. Our success and relevance will always be dependent on our ability to bring a diverse group of perspectives and people together to solve a tough problem. 

Trust is an essential element in addressing these newer, non-financial areas. The core competency of an accountant is to provide quality, trusted information to stakeholders. That remains essential in all areas of our work, and we continue to invest in our ability to deliver with quality and integrity always. Consistent quality earns trust and gives our profession license to expand in new, relevant ways. 

— Tim Ryan, U.S. senior partner, PricewaterhouseCoopers

The shrinking pipeline poses a significant challenge in the accounting industry due to narrow perspectives on the profession, declining interest, and stringent regulations for achieving CPA licensure. Many people still associate accountants with traditional roles involving repetitive number-crunching and tax preparation. This outdated stereotype can deter individuals, especially younger generations, who seek more dynamic and innovative career paths. Contrary to this myopic view, the accounting field offers a plethora of diverse roles, spanning financial analysis, auditing, forensic accounting, management accounting, and strategic financial planning. When individuals possess a constrained understanding of these multifaceted career opportunities, they may inadvertently overlook the vast potential and innovation embedded within the accounting profession.

— Guylaine Saint Juste, president & CEO, NABA Inc.

CPA pipeline.

— Frank Sands, president, National Association of CPA Practitioners

An overwhelming majority (84%) of U.S. and U.K. CFOs are facing a significant talent shortage within their departments due to factors such as high turnover rates and fewer people entering the finance profession, according to tax automation software company Avalara. Of the different finance functions where CFOs are seeing a talent crunch, accounting ranked at the top of the list, with 81% of respondents reporting a shortage in that area. The list also includes financial planning and analysis (49%), accounts receivable (42%) and accounts payable (39%).

This crunch requires a two-pronged approach: Increased automation in core processes that removes manual grunt work, and upskilling & reskilling of talent with powerful new AI tools that will allow them to thrive in their careers.

The accounting workforce is aging – some accountants are retiring, while many in the middle of their careers are concerned about being made redundant. Some view AI as a threat to their jobs, but I believe wholeheartedly that AI will be the catalyst to reinvigorate their careers. The goal of automating certain aspects of the accounting workflow is not to eliminate jobs, but to minimize errors, reduce monotony and streamline the accounting workflow. This enables accountants to act more strategically in their roles and add meaningful value to their organizations, ultimately leading to greater job security, increased compensation and a more fulfilling career path.

Docyt is preparing to launch its Docyt University program to provide training and certification to accounting professionals and business owners on AI-powered finance & accounting workflows.

— Sid Saxena, co-founder & CEO, Docyt

In one word – staffing.

The United States is made up of approximately 330 million Americans of which about 70 million are classified as baby boomers that have been retiring in unprecedented numbers over the past few years adversely affecting staffing across all industry sectors.

However, it's really the perfect storm for the accounting profession as the bursting baby boomer bubble is resulting in the loss of so many industry thought leaders all at once coupled with not enough accounting candidates graduating from universities across the country representing Generation Z resulting in staffing shortages at the entry-level as well which will affect the NextGen era of senior associates and managers in the coming years to follow. 

— Peter Scalise, federal tax credits & incentives practice leader for the Americas, Prager Metis CPAs

The most critical issue currently facing the accounting profession is the shortfall of resources and talent available. Firms continue to scramble to find top talent. This has been particularly challenging in today's employment market. If not resolved, the insufficiency of resources has the potential to increase risk, jeopardize quality, and distract firms from focusing on delivering value-added advisory services to their clients.

This industry issue is a catalyst for digital transformation. To overcome it, a progressive firm can focus on automating task-oriented roles, introducing intelligent automation solutions such as Generative AI, AI, ML, and RPA to augment their professionals' workflow by introducing cutting-edge technology to accelerate their productivity. By moving in this direction, a firm can shore up the quality of its work while simultaneously recalibrating its professionals to focus on the more advanced value-added advisory services that its clients would be eager to consume.

— Peter Scavuzzo, CEO, Marcum Technology; principal/chief information & digital officer, Marcum LLP

Capacity without people. The demand for services grows and the supply side of traditional capacity diminishes. No traditional solution in sight. 

— Gary Shamis, CEO, Winding River Consulting

Addressing our people issues. We need to create a more inclusive profession that recognizing the value of diversity of perspective and treats other professional disciplines as equals. We also need to make more visible that public accounting firm culture is changing that the churn-and-burn mentality is less prevalent—more firms are adopting better people practices and our profession provides a great quality of life for all professionals who are involved in accounting.

— Donny Shimamoto, founder and managing director, IntrapriseTechKnowlogies LLC

The accounting profession is facing disruption and commoditization: The apprenticeship model is being disrupted by the fast-changing expectations of new generations of professionals; we're seeing new market entrants in our industry; and client needs are changing dramatically. To top it all off, new technologies like AI could change the way business is done. 

This presents an opportunity for firms to adapt our business models and rethink our delivery systems. And while these disruptions may be new, it's important to remember that our profession has faced technological disruption before. We can — and will — thrive in the face of these new challenges. 

To do that, we must tap into innovation and help clients adapt to the rapidly evolving marketplace. For example, at Grant Thornton, we believe AI will give us access to a deeper, broader knowledge base than any one individual or team could muster alone. This will help us enhance our offerings while retaining the individuality that makes our work personal, all while enhancing the quality of our deliverables in a way that our clients and the public interest need and expect. Put another way, we're taking our knowledge base and our methodologies, infusing them with emerging technology like AI, and making sure that everything from technical opinions to creative organizational design has our collective insights baked in. For me, it's simple: The accounting industry is well-positioned to embrace and drive change, if we invest to transform.

— Seth Siegel, CEO, Grant Thornton

Attracting and retaining top talent which begins with the CPA pipeline.

— Eva Simpson, VP, tax practice & financial planning, Association of International Certified Professional Accountants

The most important task to accomplish right now is to increase the talent pipeline. The accounting profession is exciting, rewarding, and full of potential. Today more than ever, folks entering the profession have access to the most cutting-edge sectors of business, and leveraging advanced technologies. Students should be aware of the opportunities offered by making accounting your career choice. 

— Lisa Simpson, vice president – firm services, AICPA & CIMA

Talent:  just that simple. 

— Joel Sinkin, director, Whitman Transition Advisors

The most current issue facing the profession is the pipeline/retention issue. Not only are the number of accounting majors, graduates, and CPA candidates decreasing, but recent surveys indicate that professionals are exiting the field in droves. The causes of these pipeline and retention issues are varied, but must remain a priority for all CPA advocates if hopes of a sustainable and comprehensive solution will translate into action. 

— Sean Stein Smith, accounting working group chair, Wall Street Blockchain Alliance

Pipeline.

— Scott Spiegel, COO, AICPA & CIMA

Rethinking the tasks we do each day amidst the civilization-shifting impact of AI.

— Jason Staats, founder, Realize LLC

As I have said in recent articles, acknowledging the shortage of skilled professionals in the profession is vitally important. Finding short-term and long-term solutions requires a collaborative approach, involving a wide range of stakeholders, including state CPA societies, accounting firms, academia, and regulatory bodies like state boards of accountancy and NASBA. CPA pipeline initiatives such as Accounting+, the evolution of the CPA profession (CPA Evolution), and the January 2024 changes to the CPA exam can and will be game-changing.

I would also like to mention succession planning, which poses unique challenges -  due to the nature of the profession, the importance of client relationships, and the specialized skills required. We are also acutely aware of the urgency of the impact of succession concerns in our M&A discussions, as potential partners consider their legacy as they reach retirement age. 

— David Stonesifer, CEO, Herbein + Co

The most important issue facing the profession is how to approach the talent shortage, while simultaneously helping firms embrace the next generation of technologies for firm growth and client satisfaction.

— Vsu Subramanian, SVP, Avalara

There are two in my view. 1. Developing and retaining accounting talent. 2. Developing and managing the expanding role of finance in corporations (e.g., ESG).

— Andrej Suskavcevic, president and CEO, Financial Executives International and Financial Education & Research Foundation

The challenges of staffing, technology and profitability are all important. 

But, at bottom, the tax and accounting profession must re-invent its value proposition, which means practice owners must move to new business models that overcome commoditization, burn-out, automation (and artificial intelligence), and external competition. This means that tax and accounting professionals must redefine themselves (and the profession as a whole) as business and financial advisors who no longer merely deliver tax and accounting as services, but, instead, use tax and accounting as tools to deliver the results clients want and need. Clients don't want or need a monthly P&L; they want the guidance that well-analyzed financials can reveal. They don't want a tax return; instead, they want to understand what their tax return reveals about their financial futures.

— Rick Telberg, founder & CEO, CPA Trendlines Research

Capacity:  I chose this work as it encompasses the critical elements of:

• Pipeline:  the people we need
• Technology:  Gaining an edge and creating efficiency 
• Processes:  Doing things better with better efficiency and consistency
• Outsourcing:  How do we leverage onshore and offshore opportunities?
• Innovation:  Thinking of new ideas, methods, and devices

— Gary Thomson, managing partner, Thomson Consulting

Culture – culture eats strategy for breakfast (Peter Drucker). Being intentional with your culture impacts your entire organization and ability to stay independent, adopt technology at a rapid pace, differentiate for attaining and retaining top talent, and the ability to keep people at the heart of your organization when the industry is being challenged by a talent crisis.

— David Toth, chief growth officer and partner, Winding River Consulting

Redefining the value proposition of the accounting profession in line with what our clients value. At some point along the way the accounting profession became perceived as a "necessary evil" (exact words of some business leaders we interviewed) and not as a profession that adds value. If we do not change this perception we will lose ground on our place of relevance in business and our ability to attract younger professionals will suffer. 

— Terrell A. Turner, CEO/founder, TLTurner Group 

The accounting profession is facing a number of complex challenges around the world, including the rapid advancement in Generative AI, new regulatory requirements, the ongoing challenges of the talent pipeline, digital transformation, evolving M&A markets, and the complex tax environment. Disruption is the new norm, and businesses—and the accounting profession that serves them—need to be agile and take a more holistic view to understand the potential risks and opportunities ahead, and be equipped to respond. 

— Joe Ucuzoglu, CEO, Deloitte

The diminishing pipeline of students desiring to enter the profession.

— Barbara Vanich, chief auditor & director of professional standards, PCAOB

The most critical issue currently facing the accounting profession centers on the  concept of experience. It's not just about crunching numbers and providing  accurate financial reports; it's about enhancing the overall experience for both  the client and the public accounting firm employee. This shift towards a more  holistic approach is driven by several factors. 

First and foremost, for clients, the accounting experience is evolving. They seek  more than just compliance; they expect a concierge, "all-you-can-eat" approach to ensure they are 100% satisfied and can count on us without  thinking. Providing a top-notch client experience means going beyond the  traditional roles of accountants and auditors. It means understanding and  anticipating a client's unique needs, offering strategic insights, and proactively  addressing challenges. It involves leveraging technology for efficiency and  delivering value that goes far beyond the basics of accounting and auditing.  Today's clients want to know that they have a dedicated partner who is as  committed to their success as they are. They want both a relationship and a 5-star experience.

On the other side of the equation, the experience of the accounting employee is  equally paramount. The profession needs to address the challenges of long  hours, high stress, and outdated working models. By fostering a supportive and  flexible work environment, adopting cutting-edge technologies to streamline  repetitive tasks, and placing a strong emphasis on work-life balance, the  profession can attract and retain top talent. A happy and motivated workforce  is better equipped to deliver outstanding experiences to clients. 

In essence, the future of the accounting profession hinges on the transformation  of the experience. This means prioritizing both the client and employee  experiences, as they are intricately connected. A profession that centers around  providing exceptional, concierge-style client experiences while ensuring the  well-being and job satisfaction of its employees will not only thrive but also  redefine the value it brings to clients and society at large. 

— Chris Vanover, founder & senior chief auditor, CPA Club Inc. 

The topic that is our biggest issue is the future of the profession. I find the conversation around the pipeline typically centers around the 150 hour rule and how to get more students into the profession. However; I continue to advocate and try to influence mindset to save the accountants we currently have in the workplace that continue to tap out. I want to save as many as I can by changing the perspective of the organizations I volunteer with, the conference audiences I speak in front of and the clients I work with to change their current practices and culture.

What has worked in the past is no longer working. If we can't save the next bench of leaders and those that are coming up after them, there will not be firms for future prospective accountants. I believe the work begins at the top. If the Partners of firms are not willing to change their perspectives on how to operate a firm culture, create an agile matrixed organization for career opportunities, and have work-life boundaries, we are going to continue to see more and more firms being acquired because there is no bench strength to take over for the firm leaders.

People and culture too many times takes a backseat to the billable client work in many organizations. A focus on people as a number one priority and investing in your People team in your organization cannot be stressed enough. It is important that HR professionals are respected as specialists in what they do, even if they do not have a background in accounting, and their suggestions are taken seriously by the firm leadership by empowering them to make the changes necessary to turn these cultures around.

The investment and time needed to do this may not be something Partners want to do, but they need to do it if they want to have an organization that lasts into the future. Enlist the expertise and help, make the investment, be vulnerable and transparent during the process of changing the organization and belief systems that have been part of the workplace since the beginnings. It's time to not look to the outside of what is wrong, but what can each of us do to make the workplace better. Our clients need us to find a new way to operate so we can continue to help them and grow what we can offer them by educating a new generation on all the possibilities there are in accounting now from advisory, automation, cybersecurity, ESG, and so much more.

— Amy Vetter, CEO, The B3 Method Institute

I think the number one issue that tax accountants face is the role of technology in modern accounting and tax because solutions are being developed with the purpose of replacing human expertise and automating routine tasks. Whether an individuals' function is in tax research or data entry, Artificial Intelligence (AI) and Machine Learning (ML) solutions are being leveraged with the intent of eliminating the need for a human being to complete the work. In order to be successful in the future of accounting and tax, I think that professionals must lean into the wide array of technology tools in the market so that they can be more productive, analyze and process data in greater detail –and at a faster speed. 

— Wendy Walker, solutions principal, Sovos

I believe fraud – and the inability to adequately detect it and protect the public from it – is the most important issue currently facing our profession. As noted above, we estimate annual global fraud losses to exceed $4 trillion, making it the most costly and damaging form of financial crime in the world. It impacts organizations in every industry and poses enormous costs on the global economy. 

A recent study by Alexander Dyck published in the Review of Accounting Studies estimates that approximately 40% of public companies commit accounting violations each year, and that 10% of public companies commit securities fraud. Furthermore, the study indicates that only about 1/3 of frauds in those companies are detected. 

Similarly, a recent report by the PCAOB indicates that 1/3 of all audits conducted by global accounting firms contain errors, and for all accounting firms that number was approximately 40%. The high error rate in public company audits certainly contributes to the prevalence of fraud. Recent examples such as FTX, Theranos, and Nikola show that massive frauds continue to proliferate and affect the general public's confidence in our ability to protect investors. 

Simply put, our profession must improve our ability to assess fraud risk and detect fraud. The failure to do so imposes enormous costs to individuals and organizations, and also undermines public confidence in our markets and in our profession. 

As CEO of the ACFE, I have dedicated my professional career to raising awareness about the enormous costs associated with fraud and to training accountants to reduce its incidence and impact.  

— John Warren, CEO, ACFE

I continue to believe that the talent pipeline is among the most critical issues facing the profession. I read a demographic report recently that there were about 400,000 fewer people turning 18 in the United States this year than 10 years ago. So, by default, we're going to have fewer people entering the accounting profession.

Beyond sheer demographics, though, accounting has a perception problem, and we need to fix that. We need to stop tackling the talent pipeline from our back foot and be more forward looking and honest (and optimistic) about what this profession can mean to someone over their career. Too often we let the narrative of our profession being "boring" and "too much work" become the talking points when neither is true. Our profession pays well, has high levels of flexibility and can be very meaningful compared to almost all other "marquis" professions. There is no reason that law, medicine, or architecture should have a better reputation than accounting, so let's tackle that.

If accounting is the language of business—and you learn that language very well—then you can go and capitalize on that dream that you have as a young person. It's not that different from the way you see college football teams recruiting eighth- and ninth graders now and trying to get them interested in their programs early. We've got to do the same thing and increase the understanding of what an accounting profession and career path can do for you, which is far more than doing tax returns or getting audits out the door. We are problem solvers—we have meaningful opportunities daily to engage in connections with clients and team members, and help others reach their goals and unlock their potential. We need to work on changing that perception. 

At the same time that we are working on the profession's image, we need to work on the profession's "big tent" for recruiting. There is a lot of wringing of hands about the demographic shifts and the number of people going to college, but when you think about the historical pipeline of accounting professionals, it was very much tilted toward the white demographic. Part of our pipeline solution is really pretty simple—let's recruit from all of our population and not just the segment that we historically have. As just one example of how we're trying to make an impact in this area, some of our employees are working with a Charlotte, N.C.-based organization called the Young Black Leadership Alliance to educate students about careers in accounting.

If we can do a better job of attracting a diverse population, our pipeline problem will be solved. And not only that: we will have truly helped a new generation of accountants unlock their potential in a profession that can change the life trajectory of those that embrace it. 

— Tom Watson, CEO, Forvis

The rapid advent and integration of technology, especially artificial intelligence (AI), is undeniably the most pressing challenge and opportunity facing the accounting profession today.

Artificial intelligence and automation are reshaping our industry, from data processing to predictive analytics. While AI offers remarkable efficiency and precision, it also begs the question of existential relevance: "Will accountants still be needed?" I firmly believe the answer is a resounding "Yes." Here's why: The crux of our profession isn't just in the numbers; it's in the nuanced understanding, the strategic insights, the personal touch, and the bespoke advice. In specialized sectors where Marcum has carved out its niche – this human element remains irreplaceable. Our strength isn't just in our expertise but in our ability to forge genuine relationships and offer tailored advice.

However, there are other options than ignoring the technological tidal wave. Rather than viewing AI as a threat, we at Marcum see it as a tool to augment our capabilities. By harnessing AI's potential, we can eliminate mundane tasks, drive down costs, and focus more on high-level advisory roles, strategic planning, and nurturing client relationships. In essence, AI will free us to be more human and to engage more deeply with our clients.

As the landscape morphs, so must our skills. The future accountant isn't just a number-cruncher but a hybrid professional – adept in technology, fluent in analytics, and skilled in communication. It's a future where accountants are not just reactive but proactive, leveraging AI's predictive power to guide businesses toward sustainable success.

Marcum's proactive approach to technology isn't just about adaptation but evolution. We are already taking strides to upskill our team, investing in training programs that integrate technology and accounting, ensuring our clients receive a blend of precision and personal touch. 

So, while AI is transforming the accounting profession, it is not replacing it. Instead, it's refining it. It pushes us to elevate our skills, foster deeper relationships, and deliver unparalleled client experiences. At Marcum, we don't fear the future; we shape it.

— Jeffrey Weiner, chairman & CEO, Marcum 

The intense competition for talent, the graying of the profession, and the impact of technology.

— Charles Weinstein, CEO, Eisner Advisory Group 

A lot of the issues in the accounting profession today are what I would consider noise. This noise has been present for as long as I have been in or around the profession. The two biggest noise makers I would point to are capacity constraints and properly leveraging technology. But the biggest issue that I would point to is remember that your success for today and your success tomorrow will be focused on your ability to build relationships. This relationship building is focused internally and externally. The internal focus will be building your internal team, and the external focus is ensuring that you are slowing down to ask your clients what they need help with. Doing both will set you apart from your peers and overcome the noise.

— Michael Wherry, co-founder & CEO, Transformity Solutions

I could easily say something typical, like technology, law changes, quality and risk management, etc.  But for me, as I look around the profession and contemplate the challenges around recruitment, retention and legacy – I think one of the most significant issues facing our profession is lifestyle, work-life integration and wellness.  This is a challenging profession mentally, physically and emotionally.  The stresses show up in many ways and manifest outwardly to all who see us. It's one of the top reasons candidates opt out of our profession altogether, starting from when we show up on college and university campuses to how we show up in the work environment. We need to raise more awareness around these stressors to positively impact the decision-making of our future accountants and the accountancy profession.

— Tifphani White-King, partner, national tax practice service line leader, global tax board member, Mazars

When it comes to the most pressing issue confronting the accounting profession today, it's the challenge of attracting and retaining individuals who are deeply committed to client service, possess strong technological acumen, and can effectively translate complex concepts into understandable and relevant insights for business leaders and their teams. 

The accounting landscape is evolving rapidly, requiring a fresh set of skills. While recent graduates often possess these skills, they might not necessarily view accounting as their primary profession. This is why it is so critical that our profession adapts and evolves to meet the changing demands of both clients and the professionals who serve them. It's a cause that I'm deeply passionate about and am committed to addressing.

— Geni Whitehouse, president, Information Technology Alliance  

Talent! As such we have four ways to help the profession with the talent shortage. First, we continue to have a full-service recruitment team helping our clients with the permanent placement of CPAs and CPA candidates at their firms. Secondly, after hearing that Sue Coffi at AICPA Council mentioned that there will not be enough auditors to manage the audits that will be necessary due to the PPPs and governmental grants, we went and partnered with a staffing company in the Philippines. We have almost 100 CPAs from the Philippines working remotely for our CPA firm clients. Additionally, we recently launched IMPACT Global Solutions Group and are the only company that is teaching CPA firms how to do offshoring properly. Finally, we recently invested in Tax Titans, an online platform that matches tax preparers to clients. CPA firms can outsource their work to Tax Titans and do not have to worry about their clients completing a 7216, as all work is completed here in the United States.

— Philip Whitman, CEO, Whitman Transition Advisors 

I have the privilege of facilitating numerous peer communities and there's a common thread that consistently emerges across all our groups.  That ever-persistent issue, which refuses to fade into the background, revolves around Talent Acquisition and Retention, as well as the critical matter of Succession.  Fundamentally, it's all about people.  While many crucial topics contribute to the success to our firms, it's abundantly clear that the very bedrock of our current and future business models hinges upon our ability to attract, retain, motivate, inspire and nurture the talent within our firms, it's the human factor that underpins every facet of our journey towards excellence.  

— Sandra Wiley, president, Boomer Consulting Inc.

The PCAOB is seeing audit quality for both domestic and international firms trend in the wrong direction for the second year in a row.

When inspection reports are finalized later this year, PCAOB inspectors expect that approximately 40% of the audits they reviewed in 2022 will have had one or more deficiencies where the audit firm failed to obtain sufficient appropriate evidence to support its opinion.

That is up 6 percentage points from 2021, which was already 5 points higher than the deficiency rate in 2020.

This means audit opinions were signed without completing the audit work required to verify the accuracy of the financial statements. That is a serious problem at any rate, and 40% is completely unacceptable.

I have challenged auditors to sharpen their focus. Ultimately the responsibility falls on firms to correct the problems that led to deficiencies in their audits. 

At the same time, we are also encouraging audit committees and investors to use their influence to hold firms accountable for improving audit quality. And the PCAOB has provided specific questions audit committees should ask. 

— Erica Williams, chair, PCAOB 

An unwillingness to change. While most agree that there is a talent shortage and the future pipeline is not trending in the right direction, it seems that instead of identifying things that we must each individually change in our own corner, most hope someone else's corner will change and that will be enough. It will take all corners of the profession to unify, truly collaborate and drive change at all life stages of pipeline. When we take 100% responsibility for our part in the change, then we'll draw more people into this incredible, multi-faceted, and difference-making profession. 

— Jennifer Wilson, co-founder and partner, ConvergenceCoaching LLC

Disruption from technology, changing demographics, and shifting business models are impacting the profession in enormous ways. The speed of these changes and their impact means it's more important than ever to address long-held and sometimes prevailing misperceptions of the CPA's role, the value they provide to businesses, clients and markets and the image of the profession as a career. Newer generations tend not to learn how exciting a CPA career can be. Likewise, mid-career and even end of career CPAs need to do a better job at representing the profession's opportunities and their understanding that a relevant profession changes over time.

— Cheryl Gravis Wipper, VP, content and communications, Association of International Certified Professional Accountants

While the "pipeline" challenges are currently important, I think a longer-range challenge is identifying and providing value to stakeholders in the technology-enabled future. Accountants will be required to adapt to provide new ways of adding value as technology performs more and more of the tasks that accountants currently perform. Identifying the new ways of adding value and then developing the skills to provide them is going to require significant effort and change in education and the profession. 

— David Wood, Glenn D. Ardis professor, Brigham Young University

Staffing shortages due, in large part, to an aging demographic within the profession and a lack of desire for college students to embrace accounting. 

If I could offer a second important issue (a close second) it would be pending technological disruptions accelerated and enhanced by rapid developments in artificial intelligence. The technological disruption is a more important issue, but the staffing crisis is a more urgent issue. 

There will be a convergence of these two issues.

— Joe Woodard, CEO, Woodard

People and technology remain the biggest issues, which is why the profession is seeing so many firms combine in order to remain competitive and well positioned to attract talent and deliver client services. 

— Candace Wright, chair of the Private Company Council of the Financial Accounting Foundation

I think the most important issue is that partner groups are all too ready to assume the status quo will continue. The last few years have been challenging in the talent markets, but every CPA I know has done better and better financially through the great resignation, creating a false sense of security. The ground is shifting much faster than people think. As an example, everyone I talk to comes to an opinion about private equity quickly, some think it's ok and most do not. Whatever you think of the big private equity transactions that have occurred, I am very confident that someone is going to make money in these deals in the next couple of years. When that happens, young CPAs will reap financial rewards early in their careers in a way this profession has never seen. Word will get out and suddenly, every talented young accountant will be looking for modernized economics so they can reap the rewards of their hard work, too. At that point, a talent problem that is already difficult for legacy public accounting firms is going to get even more difficult because the partnership model has no sustainable answer. Every managing partner needs to be thinking ahead and assume that the status quo is already gone. Buckle up!

— David Wurtzbacher, founder & CEO, Ascend 

Automation. Fewer people are entering the accounting profession, and more work needs to be accomplished to help businesses understand their financial health and make appropriate business decisions. The speed at which executives expect responses and analysis of financial results will require every accounting professional to not only have awareness but proficiency with a variety of tools; from data analytics and visualization tools to research and presentation tools including emerging AI technology. Accounting professionals need to understand when and how to use the appropriate tools as well as how to safeguard confidential information when they are being pressured to respond.

— Diane Yetter, president and founder, Yetter Consulting Services & Sales Tax Institute

Technology, especially the understanding of how to use technology to improve processes for the staff and the clients and the firm and how to teach it in a way to make for a more inclusive culture. The ability of firms to implement automation tools and harness information will play a key role in business strategy moving forward.  

— Steven Zelin, The Singing CPA, managing member, Zelin & Associates CPA