Ok, so that title sounds a bit grim.
Truth be told, it is an interesting situation we're in as a society with such a high-demand role losing valuable talent in increasingly large numbers.
Why is it SO hard to find an Accountant?
This is what we hear from clients all the time.
I'm not complaining, this challenge keeps the industry I'm in growing but a happy medium would be acceptable.
Accounting jobs are being added to the job market every year yet, fewer and fewer are entering (or staying in) the profession.
A few stats you may find interesting:
- According to the AICPA, there is a 33% decline in first-time candidates taking the CPA exam.
- According to the U.S. Department of Labor, despite the heavy layoffs in 2023, Accountants and Auditors unemployment rate remained at 1.3%
- In 2022, there were 1.6 million Accountants/Auditors in the profession.
- Of the 1.6 million, 300,000 left the profession and only 47,000 entered it. Jobs are increasing, Accountants are decreasing.
The bottom line, high-caliber candidates have options.
With the collapse of the CPA pipeline, boomers retiring, and fewer Accountants entering and staying in the profession, organizations that are competitive in their offerings will attract more candidates.
Top 3 requirements for an Accountant to consider a move:
1)Competitive compensation and benefits
2) Opportunity for advancement or title upgrade
3)Hybrid or Remote work schedules
Interestingly, we’ve noticed that many are often already working fully in the office and only entertaining a move for a hybrid position. That gives companies with a hybrid model a HUGE competitive advantage to attract high-caliber candidates.
Something to think about...
If a company has a fully in-office work model, half the talent sourced will not be open to hearing about that role.
The good news…companies still have a good 50% who WILL entertain the position.
Unless...the company is offering average compensation rates AND expect them to come into the office every day.
That's another 15-20% of the candidate pool gone.
Lastly, if the company doesn’t have a “carrot” to dangle (the reason a highly sought-after candidate would WANT to join their firm) it gets even more challenging.
Let’s add this up…
Fully in-office + average compensation + no clear carrot = fewer candidates/options
Don’t get me wrong, a company can offer hybrid, above-average compensation, a title increase, and, and, and (fill your perk in the blank)
and…they will STILL need a great deal of super sleuthing skills to locate those hard-to-find Accounting professionals.
This is what makes my job so much fun! No sarcasm, I truly love my job.
It will be interesting to see how we shift to accommodate this trend of declining talent in a high-demand profession in years to come.
Perhaps AI will save the day!
Until then, you have outstanding recruiting partners to help. That's me! If you are in the market looking for your next opportunity OR looking to add to your team, I'd love to help. We place Sr. Accountants to CFO and all C-level roles.
kshapiro@theexecutivemovement.com
FAQs
- According to the AICPA, there is a 33% decline in first-time candidates taking the CPA exam. - In 2022, there were 1.6 million Accountants/Auditors in the profession. - Of the 1.6 million, 300,000 left the profession and only 47,000 entered it. Jobs are increasing, Accountants are decreasing.
Is accounting becoming less popular? ›
There are 340,000 fewer accountants than five years ago, according to a Bloomberg analysis of data from the Bureau of Labor Statistics, leaving the U.S. with only 1.6 million. And the talent pipeline is drying up. The number of candidates taking the CPA exam is the lowest since 2006.
Why will accountants become obsolete? ›
As generative artificial intelligence (AI) takes over more mundane and repetitive tasks, some accounting jobs are at risk of disappearing, Accounting Today reported. But the accountants whose jobs are replaced become free to perform more high-value work.
Why is no one going to accounting? ›
Higher starting salaries with other majors was the top reason why non-accounting majors who had considered the field decided against it, according to a survey of nearly 500 students this spring by the Center for Audit Quality, an industry group.
Why so many accountants are burned out? ›
For many, accounting is a tough job that's only become more complex and stressful. The hours are gruelling (especially during tax season, when 70- and 80-hour weeks are common), and repetitive tasks like balancing and reconciling tasks seem endless.
Why are so many people leaving accounting? ›
Why accountants leave: The top three reasons respondents gave for leaving their jobs within the past two years were salary (49%), burnout/heavy workload (49%), and lack of work-life balance (48%).
Why are accounting majors declining? ›
Fewer people are selecting accounting as their career, citing low salaries compared with industries such as tech and banking. Young workers are wary of the requirement of 150 college credit hours for getting a certified public accountant license, posing additional costs and time commitment.
Is AI replacing accountants? ›
The quick answer is, no — not any time even remotely soon. But accountants and bookkeepers need to understand both AI and automation in order to do their jobs as effectively as possible. Keep reading to find out more.
Is accounting going to be phased out? ›
Accountants aren't going away—why you don't need to worry
You just need to embrace these inevitable changes. By harnessing existing technologies, such as artificial intelligence, machine learning, cloud computing, automation, and other helpful tools, you open your services for evolution rather than extinction.
Do people still need accountants? ›
Of course YES ! It has to be noted that every company requires services of CA in some manner be it Accounting, Auditing, Tax Advisory & from incorporation to winding up, CAs are involved at each & every stage.
- According to the AICPA, there is a 33% decline in first-time candidates taking the CPA exam. - In 2022, there were 1.6 million Accountants/Auditors in the profession. - Of the 1.6 million, 300,000 left the profession and only 47,000 entered it. Jobs are increasing, Accountants are decreasing.
Why are CPAs so underpaid? ›
Accountants are underpaid. Accountants lack the confidence to charge amounts that will make them profitable while responding to every email and phone call within a reasonable time frame. To be more responsive, an accountant needs either fewer, but higher paying clients or staff. Either way, clients need to pay more.
Are CPAs upper middle class? ›
Typical professions for this class include lawyers, physicians, military officers, psychologists, certified public accountants, pharmacists, optometrists, financial planners, dentists, engineers, scientists, professors, architects, urban planners, civil service executives, and civilian contractors.
Why are accountants paid so little? ›
Generally speaking, accounting jobs that center on compliance work will always leave many accountants feeling underpaid because they are working long hours with low-margin. A good rule of thumb is that data entry doesn't pay well. On the other hand, with advisory, the sky is the limit.
Is CPA losing relevance? ›
In recent years, the Big 4 accounting firms have begun losing relevance, and correspondingly, so has their hallmark professional trademark, the CPA (Certified Public Accountant).
Where have all the accountants gone? ›
The decreasing numbers suggest that the accounting profession is losing its appeal to younger generations, who are increasingly gravitating towards careers that promise not just financial rewards but also offer greater flexibility, innovation, and a sense of purpose.
Is accounting a declining industry? ›
- In 2022, there were 1.6 million Accountants/Auditors in the profession. - Of the 1.6 million, 300,000 left the profession and only 47,000 entered it. Jobs are increasing, Accountants are decreasing.
Is accounting being phased out? ›
Accountants aren't going away—why you don't need to worry
You just need to embrace these inevitable changes. By harnessing existing technologies, such as artificial intelligence, machine learning, cloud computing, automation, and other helpful tools, you open your services for evolution rather than extinction.
Is accounting a growing or dying field? ›
A report from the American Institute of Certified Public Accountants (AICPA) found a 33% decline in first-time candidates taking the national certified public accountant (CPA) exam from 2016 to 2021. There is a growing shortage of certified public accountants and the profession is aging, with 75% at retirement age.
Are less people majoring in accounting? ›
The number of students who graduated at the end of the 2021-2022 academic year with a degree in accounting plunged 7.4% compared with the prior period, accelerating a six-year trend of declining entrants into the profession, according to the American Institute of Certified Public Accountants.
