The Accountant Talent Crunch: Impact on Your Business & Strategies to Win

A growing shortage of accountants in the US has left businesses struggling to meet their accounting needs effectively. While the problem has been exacerbated by an aging workforce and a lack of interest in the profession, businesses have also contributed to the crisis in many indirect ways. Consequently, they find themselves in the lurch and are clueless about how to get out of the impasse. 

The US Bureau of Labor Statistics predicts about 136,400 unfilled auditing and accounting positions through 2031.

Employer’s Are to Blame for the Shortage- Here’s Why 

The recent ACCA Global Talent Trend 2023 report painted a broader picture of the crisis. The findings reveal accounting as a profession undergoing significant workplace changes. Employers are failing to catch up to the changes, thereby becoming a passive contributor to the ongoing talent shortage in the accounting profession. Here’s a look:

• Hybrid Work is Still a Hypothesis: The ACCA survey found that over half of accountants don't currently have a hybrid option. About 70% of respondents cite better productivity while working remotely. Fearing a dip in productivity, companies fail to feel the modern workforce pulse as they continue taking baby steps towards a hybrid work model.
• Disharmony in Work-life Balance: Professionals fear the fact that once they step into the profession they may get sucked into the vicious circle of workplace burnout. The apprehension further makes accounting a less alluring profession for 88% talents craving a better work-life balance.
• The 150-rule Stinker: The goal of this rule to equip accountants for the complex financial world backfired in the worst possible way. Higher college costs owing to an extra year combined with low-end rookie salaries fixed by recruiting companies drove away fresh talents from the accounting profession.
• Inflationary Pressure on Remuneration: Keeping up with pay is the number one worry for employers going forward, especially with inflation squeezing wallets across almost every industry. 
• The Technology Paradox: While professionals recognize the value technology brings to their work and careers (positive impact), 42% of the survey respondents expressed concerns about being overwhelmed by the rapid pace of technological change.
• Employees on the Go: The survey further found out that nearly half 44% of professionals plan a job move within a year. The worst part about the finding is most of the employers do not have a proper attrition plan to retain valuable resources. 

How to Tide the Talent Shortage in Accounting?

Let's delve into modern-day solutions and explore how they can future-proof your own organization in this dynamic talent landscape.

Flip the Hiring Script

It is high time that enterprises ditch the traditional recruitment playbook and find new ways to engage fresh talents. The new strategy includes targeting potential accountants before they even have their credentials. In this regard, KPMG along with other Big Four firms is leading by example by offering new hires a full salary and benefits while they study for the CPA exam.

Tech Rebrand of the Accounting Profession

The recent Wolters Kluwer Tax & Accounting research report predicted a whopping 90% small and 94% large accounting enterprises leverage technology to improve staff engagement.

Millennials and Gen Z workers crave tech-forward employers and see access to cutting-edge tools as a major perk. By incorporating AI, machine learning, and data analytics, accounting firms can transform what accountants do, shifting the focus from basic bookkeeping to strategic analysis and advisory services. 

Tap into the Untapped Potential of Accountants

Accountants with a broader skill set are the future! Firms that recognize and promote these transferable skills will gain a competitive edge in attracting top talent seeking dynamic and multifaceted careers. 

Embrace Outsourcing to Access Tech+Talent Under One Roof

Outsourcing accounting services unlocks access to advanced technology and experienced professionals without the overhead of building an in-house team. This cost-effective approach allows enterprises hardpressed with resources to scale their accounting needs seamlessly as their business grows.

Multiple news agencies reported that accounting firm BDO USA is ramping up their overseas workforce significantly, specifically doubling the size of its team. This move comes as the number of young Americans choosing accounting careers dips in the US.

Conclusion

The talent crunch in accounting is here to stay and plague businesses for a while. But if you look at the brighter side, you can turn the situation into a springboard for growth! Whether you choose outsourcing, embrace technologies like automation with AI, or invest in your current team, the key is to be flexible and think ahead. By taking a good look at your unique business needs and matching them with these innovative approaches, you can not only weather the storm but also set yourself up for long-term success. In today's fast-paced world, the ability to adapt and embrace change is the key to a bright financial future.