What’s the latest on the national shortage of accountants that’s dominated industry discussions over the past couple of years?
Analysts are still advising that the numbers of new graduates won’t be nearly enough to fill the 90,700 new accounting and auditor jobs expected to be created nationwide between 2018 and 2028, representing the 6% national growth rate for all job categories. Already, most accountants are gainfully employed; BLS reports the unemployment rate for accountants and auditors was a mere 2% in the third quarter of 2019 and 1.5% in the quarter prior — lower than the national unemployment rate of 3.5%.
What’s causing the shortage?
The data points primarily to the vacancies created by masses of retiring baby boomers. The American Institute of Certified Public Accountants (AICPA) estimates, in fact, that 75% of all current CPAs will retire in the next 15 years.
Further, data indicates fewer younger people may be entering the profession. That lines up with a report by the Association of International Certified Professional Accountants (AICPA - CIMA) showing the number of students enrolled in postsecondary accounting programs nationwide dropped about 4% between 2016 and 2017, with Master’s-level enrollments down 6% and graduations at all levels down 4%. Similarly, CPA Exam candidates decreased 7% between 2017 and 2018.
“Millennials entering the workforce are seeking flexible and meaningful careers that affect wholesale change — two traits not typically associated with accounting,” states a Marketscale.com report.
Addressing the problem
What’s to be done about the expected shortage? Here are some trends that may impact it as we move into 2020:
Automated everything
The accounting industry will continue to automate mundane tasks as thoroughly as possible so accountants can focus more brainpower on projects that require strategic thinking. Though many in the industry seem to be worried about machines eliminating their jobs, the automation trend doesn’t seem to be affecting projected demand for skilled accountants who can consult on corporate finances.
Pipeline planning
Companies may follow forward-thinkers like PwC in creating educational programs encouraging high school students to embrace the accounting field. Others will partner with universities to encourage them to look beyond accounting processes to teach more about problem-solving, critical thinking, financial strategy and technology innovation.
Boosted benefits
As firms compete for talent, accountants should enjoy boosted salaries, attractive benefits and incentives such as the option of working remotely, a perk enabled by cloud technology.
Training transformation
On-the-job training programs for new accountants will increasingly include leadership, selling, and managing and motivating people to nurture skills that go beyond numbers and technical issues.
In with the outsourcing
Companies unable to keep enough accountants on staff will turn to outside sources to handle compliance, taxes and/or other accounting tasks.
Less-skilled assistance?
In an effort to fill gaps in accounting expertise, some firms may shift important financial work to people without CPA licenses, or variations of that license may be created. “My worry is that if the profession’s going to start giving out the CPA license to individuals who come from a different profession, it will lose its real value,” advises CPA Salvatore Collemi on CPAJournal.com. “Variations of the license will sacrifice the integrity of what it’s about.”
Looking for more industry tips on what’s coming in the next several years? To read more, download our latest whitepaper, “Top Skills Modern Accountants Need for 2020 and Beyond." Want to learn more about Gravity Software? Just schedule your online demo today!
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