By Joe DiBernardo, Aston Carter Director of Market Operations, Accounting and Finance
The Accountant Shortage is Risky for Business
Accounting is the backbone of every business. Corporate finance leaders rely on number-driven insights to make sound business decisions and projections. Accurate financial reporting and regulatory compliance are essential to stakeholders — from investors and shareholders to customers and employees. Despite the vital importance of the accounting function to business operations, there is a widespread talent shortage of accountants and auditors. This lack of qualified talent poses a serious threat to the business landscape, and, as some believe, to the future of capitalism.
Between 2019 and 2021, the number of accountants and auditors in the U.S. fell by 17%. This steep drop in qualified talent has sparked concerns over the potential for increased financial errors and fraud. A 2022 survey of accountants found that 85% reported having to reopen their books to fix mistakes over the course of the year. Oversights or errors due to factors like insufficient staffing and employee burnout can have long-term and far-reaching impacts. For example, the recent collapse of Silicon Valley Bank, despite receiving a clean bill of health from auditors, sent shock waves through the U.S. banking system and sparked debate over the integrity of the auditing process.
The importance of trained, qualified accounting professionals is indisputable. Employers must be able to attract a new generation of skilled workers while retaining existing talent amid growing competition.
Companies Need to Attract a New Generation of Accountants
Nearly 75% of accountants reached retirement age in 2020 — creating a major succession problem for businesses. As baby boomers exit the workforce, employers are looking to younger workers to fill the void. However, research shows that fewer people are pursuing bachelor’s or master’s degrees in accounting, and that the number of candidates getting CPA certifications has dropped drastically over the last decade.
So, why are new workers avoiding the accounting field? The common misconceptions that accounting lacks excitement and that the work is mundane are partially to blame. These stereotypes, combined with long hours, the rigorous work associated with obtaining a CPA license and a lower starting salary than other careers in finance are all factors. Convincing younger workers to pursue accounting careers is more difficult than ever, so employers are pivoting to attract fresh talent in new ways.
Some companies are flipping the script on traditional recruitment by pursuing potential talent before they’ve secured their credentials or even officially entered the job market. For example, KPMG offers new employees a full-time salary and benefits while they study to pass the CPA exam. The University of North Carolina even boasts that Big Four accounting firms start recruiting their Master of Accounting students within weeks of starting the program.
The Key to Retention Is Remote Work, Increased Pay
Recruiting new accounting talent is only half the battle for employers. In addition to finding candidates to fill vacant positions, companies must also focus on retaining their existing workforces and mitigating high turnover. As the job landscape continues to evolve, hiring managers must be positioned to offer workers the attractive incentives they want. An internal Aston Carter survey of accounting and finance candidates found that remote work was the top consideration when it came to choosing a new job, followed by higher pay.
Some of the biggest accounting firms in the world are transitioning to remote work and increasing salaries to retain workers. In 2021, PricewaterhouseCoopers announced that it would allow remote work for 40,000 of its U.S.-based service workers, including auditors, consultants and tax professionals. Today, PwC employees can choose between a virtual, flex or in-person working environment. Other Big Four accounting firms are investing in retention as well. Ernst & Young LLP has spent more than $2 billion in pay raises and bonuses since 2020, while KPMG has invested millions on multiple salary increases over the course of one financial year.
These employment strategies aren’t just an effective way to retain workers, they also help attract a diverse workforce. Remote work allows employers to expand their talent search nationwide — giving them a wider pool of candidates to consider. It also helps businesses compete for talent in a world that’s increasingly transitioning to remote and flexible work models. Understanding what workers want will help employers recruit and retain talent in an increasingly competitive hiring landscape.
To Compete in a Tight Labor Market, Turn to the Experts
Partnering with a workforce solutions company like Aston Carter can help companies of all sizes and industries obtain the accounting and auditing talent they need. With decades of recruitment experience, Aston Carter has built a robust pipeline of accounting talent from across the country. This deep talent pool empowers companies to find curated candidates quickly, so they can fill and expand their teams without delay. Access to top accountants and auditors also gives companies a competitive edge in a tight labor market, allowing them to focus on business strategy and execution while Aston Carter delivers full-service recruitment solutions.
Contact us to learn more about how Aston Carter can help your business attract and retain accounting and finance talent.
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