How to outsmart the talent drought?

Did you know there are 126,500 job openings projected for accountants and auditors each year over the next decade? According to the U.S. Bureau of Labor Statistics, the employment of accountants and auditors is projected to grow 4 percent each year from 2022. This shortage is further exacerbated by a decline in the number of people taking professional exams like CPA, CMA, and EA. As per the latest reports, CPA exam candidates have dropped from 48,004 in 2016 to 32,188 in 2021, the lowest in 17 years. Based on these statistics, it is safe to say the heart of the problem is clear. Even the number of students graduating with a bachelor's degree in accounting has gone down:  

If we count the factors contributing to this shortage, they broadly include competition from higher-paying industries, burnout from long working hours, and challenges related to the educational requirements for becoming an accounting and tax professional. The shortage is prompting organizations to adopt more technology and automation to reduce manual workloads and focus on strategic tasks. Companies are also rethinking staffing models and investing in upskilling their teams to handle new technologies and complex financial strategies. 

Before diving in, let's grasp the impact of this shortage on stakeholders...

First, these shortages lead to delays in financial reporting and auditing processes, which are crucial for maintaining transparency and investor confidence in financial markets. Without timely and accurate financial information, investors may hesitate to allocate capital, potentially slowing economic growth. 

Moreover, the lack of skilled accountants can hinder effective corporate governance and compliance with regulatory standards, increasing the risk of financial scandals and corporate mismanagement. This undermines trust in businesses and financial institutions. 

On a broader scale, these shortages may limit the capacity of governments to effectively collect taxes and manage public finances. Inadequate oversight due to a lack of skilled accountants can lead to inefficiencies in public spending, impacting economic stability and development. 

Even professional firms are not exempt. Their operations are disrupted due to the unavailability of experienced staff, aging partners, and the challenge of developing the next generation of leaders. This creates obstacles to growing their practices as expected.

So, how do we solve this drought?

Overcoming the accounting talent shortage requires proactive strategies that address both immediate needs and long-term sustainability. Here are a few effective ways to tackle this challenge:  

You can start by enhancing recruitment efforts. Collaborate with universities, colleges, and professional organizations to engage with students early in their academic careers. Take advantage of social media forums through which you can offer internships, co-op programs, and entry-level positions to nurture future talent pipelines. And don’t forget to highlight the firm's commitment to career development, work-life balance, and opportunities for professional growth to attract qualified candidates. 

Upskilling staff members is essential in today's competitive world. Therefore, investing in the training and development of staff members is critical. This can begin by creating comprehensive training and development programs to prepare them for evolving roles in the digital age. Offer continuing education opportunities, workshops, and certifications in emerging technologies (e.g., data analytics, AI) and specialized areas (e.g., tax law updates, regulatory compliance). Empower employees to expand their skill sets and stay ahead in a competitive market. 

Extensively applying cutting-edge technology to streamline processes is crucial for enhancing efficiency in today's accounting landscape. Implementing cloud-based accounting software and data analytics tools automates routine tasks, freeing up time for strategic activities.  

AI is increasingly pivotal, as seen with industry leaders like PwC and KPMG using it for audit and data-driven analysis. Providing training and support to employees enables them to harness these technologies effectively, maximizing their impact on business operations. 

And we cannot forget the driving force: a positive work environment. Create a supportive and inclusive workplace culture that values diversity, creativity, and work-life balance. Offer flexible work arrangements, remote work options, and wellness programs to attract and retain top talent. Promote open communication, collaboration, and recognition of achievements to boost employee morale and engagement with reward programs. As the old saying goes “Small steps lead to big journeys”. An interesting video on the same by TEDx you might want to check out from here. 

Another way to look at it is offering flexible work options. With all the talk about how productive employees are when they work from home, the truth is, that many valuable candidates, especially younger ones, want choices. Having flexible work options can really attract top talent to accounting firms competing in a tough market. 

Firms can handle their tasks effectively from anywhere nowadays without losing productivity, security, or service quality. This is especially true if they use the right practice management software. By using this software to securely manage client documents, keep communication flowing, and handle tasks and workflows, firms can give their team members the option to work remotely, either part-time or full-time. 

And it's not just about working remotely. It's also about flexible hours. With the old idea of strict work hours becoming less common, firms looking to keep or attract more accountants should think about letting employees choose when they want to work — if they get their work done on time, of course. This lets accountants handle family responsibilities during the day, work when they're most focused and makes them more likely to stick with their current firm instead of looking for opportunities elsewhere.  

You know, outsourcing can really help with the Accounting Talent Shortage by tapping into talent from all over the world. It gives you access to skilled professionals who might not be available locally. Plus, it takes some pressure off your current team and lets them focus on what they do best, while also offering them more opportunities to grow in their careers. 

By outsourcing, you can streamline your processes and bring in specialized expertise that you might not have in-house. And here's the kicker: it allows you to offer competitive compensation and rewards to your staff by saving money on operational costs. It's a win-win situation because it not only helps fill those talent gaps but also makes your current team happier and more productive. 

In the end, overcoming the talent shortage in accounting and tax firms requires a concerted effort from both industry stakeholders and professionals themselves. The wake-up call for professionals lies in recognizing the evolving demands of the profession amidst technological advancements, demographic shifts, and changing workforce expectations. Embracing continuous learning, adapting to technological innovations, and cultivating diverse skill sets are crucial for staying competitive. Hope you liked the solutions shared, stay tuned for more such updates!