Accounting has long been considered a space ruled by reliability and stability. The industry itself, driven by ceaseless consumer demand and dependable rhythms, promotes job security and often even attracts a certain personality type — creatures of habit who find comfort in familiar routines and steady surroundings.
Yet the accounting industry is currently in the midst of unprecedented volatility, at least in terms of staffing and maintaining a viable workforce balance. A generation of CPAs is at or nearing retirement age, and the number of new accounting professionals entering the field seemingly won't be enough to keep up with future needs. Whether the talent crisis in the space is an existential one is up for debate, but this much is clear: Doing nothing is not an option.
The problem isn't breaking news in the accounting field, but even among those who acknowledge the looming staffing shortfall, agreement on and action toward concrete solutions has been too slow or altogether absent. Change is necessary. Here are some practical steps that, if supported across the field, could help shake the accounting industry out of its staffing slump.
Why the accounting industry is facing dwindling numbers
No surprise here: The Baby Boomers are again influencing the narrative. Many CPAs from this generation are aging out of the working world, as the AICPA indicates that
But in the accounting field, the candle is burning at both ends. At the same time that CPAs are entering retirement at unprecedented rates, far fewer young workers are falling in behind them to pick up the slack. The stability and security of entry-level accounting positions (and the promise of future growth) are no longer the draw they once were. The two trends have led to a rapidly shrinking talent pool that puts firms and their clients in an extremely precarious position.
Although certain accounting houses may be savvier or better equipped to take on the workforce shortage, everyone in the field is rowing against the tide. It won't be a problem that is solved individually or even organizationally. Long term, industry-wide staffing is an entrenched, systemic issue that will require big ideas and likely sweeping changes that are embraced and implemented throughout the space. So how does the accounting industry, as a whole, close the labor gap?
Closing the talent gap in the accounting space
The current labor crisis in the accounting industry has been decades in the making. Any notion that a single adjustment or introduction could stem the tide, or even that a brilliant suite of solutions might instantly turn things around, is a naive hope.
Fortunately, this is the industry's specialty. Starting with three pillars — but certainly not leaving it there — the accounting field can begin restocking its depleted ranks and building a new brand that will help sustain its numbers over time.
1. Better incentives: Accountants have always been attracted to the comparatively strong pay, solid upward mobility and relative job security in the field. But, as has been the case in other fields, those benefits don't go as far as they once did. And because the demands of the tax calendar often shackle firms and their CPAs in many ways, accounting employers may need to get creative in their offerings — everything from first-class professional growth opportunities and a more flexible work schedule to a company car allowance and on-site daycare.
2. Adjusted job requirements: Accountants require extensive training and certification — CPA isn't exactly a learn-on-the-job role. But there may be ways to create nontraditional paths into the industry, particularly in compartmentalized roles that do (or can) allow prospects to grow into more prominent positions. Talent assessment platforms and skills-based hiring can help firms identify quality candidates who can provide immediate workforce contributions while building toward greater long-term value for an organization.
3. Rebranding the industry: Admittedly, this is a biggie. Returning to one of our initial points, accounting has long been considered a buttoned-down, straight-arrow industry. And while wanderers and creatives and outside-the-box thinkers may seem incongruous with the industry, there is a space in the middle where accounting firms would find a larger and more diverse talent pool. The big players in the field don't have to go full Silicon Valley — juice bars, massage rooms and sleep pods — to attract more quality prospects and begin changing what it means to be an accountant. By simply listening to the needs of workers currently in the space (and taking the occasional page from other competing industries), accounting firms can start wooing more and higher-caliber job candidates.
It's unclear exactly how long it may take to undo the current accounting talent crisis. But given the trajectory of the numbers and the fact that most experts are bracing for the worst for at least the next calendar year, it seems that a focused, industry-wide strategy is in order. At the very least, accounting firms must begin treating every graduating class as an opportunity to welcome more candidates into the labor force. The young, eager workers who once showed up in droves on the doorstep of accounting firms are far fewer than they once were. It's time to boost their numbers — and make moves that will keep them in the field over the long haul.
