Look to innovations in your business model to keep tenured employees engaged . the candidate and at least one year of general accounting work experience to qualify . Futurelooking firms that connect with students early and offer assistance in exam preparation , work experience and skill development may foster relationships and sustain student interest in joining the firm after completing their education .
professionalissues
BY CHRIS VANOVER , CPA
Meeting Public Accounting ’ s Problems
Six Ways Firms Can Address Today ’ s Challenges it ’ s no secret that the accounting profession is facing a growth in demand , while suffering a shortage of available talent , creating pressure for multifaceted changes . Shifting demographics in the workforce reveal evolving attitudes and priorities among professionals . Lucrative opportunities in adjacent industries lure CPAs away , forcing firms to offer more competitive compensation . As business clients become more data-driven , firms are increasingly recognizing that their own technology and data strategy will be table stakes for their success . The multipronged challenges involved require action on all these fronts — and more .
Meet Shifting Demographics Head-on Demand for accountants is expected to grow 6 percent from 2021 to 2031 , according to the U . S . Bureau of Labor Statistics ( bls . gov / ooh / business-and-financial / accountants-andauditors . htm ). The talent shortage is on both ends of the demographic spectrum . The number of U . S . students completing bachelor ’ s degrees in accounting declined from 2016 – 20 , according to the AICPA ’ s 2021 Trends Report . A wave of retirements is underway as well ; nearly 75 percent of the CPA workforce met the retirement age in 2020 .
While most American attitudes about work have evolved , the public accounting profession and firm leaders have tended to move more slowly when it comes to search for progressive answers . To effectively address the talent squeeze , firms need to listen to the interests , concerns and work priorities of clients and employees — and be willing to make adjustments to keep them engaged .
Attracting and Retaining Talent Retain Experience Through Creative Alternatives : CPAs nearing retirement age
www . calcpa . org may leave the field early rather than continue to endure the long hours and high pressure of the traditional firm model . Frustrated and disillusioned CPAs often consider starting their own firms to gain more control over their career path , but typically become just another independent contractor without a brand or power .
Look to innovations in your business model to keep these tenured employees engaged . For example , we created an innovative auditors-as-a-service concierge model to deliver audit and assurance services via subscription . The company offers flexible weekly passes without a long-term commitment that allow CPA firms and companies to reserve access to U . S . audit and assurance professionals .
We ’ ve also allowed seasoned auditors to scale back work hours while remaining active in the field , advising multiple CPA firms and offering mentoring to younger CPAs . The company also offers audit managers and seniors an opportunity to operate autonomously by building a book of business that they manage and control without the risk involved in hanging their own shingle . They benefit from the infrastructure and resources of an audit service center within an alternative CPA firm with a national presence .
Offer a Career Path to Students : A CPA license requires undergraduate and graduate-level course credits equivalent to five years of college — an immense amount of preparation by
Look to innovations in your business model to keep tenured employees engaged . the candidate and at least one year of general accounting work experience to qualify . Futurelooking firms that connect with students early and offer assistance in exam preparation , work experience and skill development may foster relationships and sustain student interest in joining the firm after completing their education .
Provide Stability and Work-Life Balance : Accountants early in their careers have been disillusioned by the traditional accounting firm model . They see no alternative to the relentless hours , high-stress work environment and lack of work-life balance . Increasingly , CPAs will opt out for work-life balance , an engaging culture and a track that offers a growth path .
To keep them engaged , firms would do well to offer flexible hours , remote work arrangements and generous PTO and seasonal breaks . Opportunities to lead or participate in new initiatives to enhance
AUGUST 2023 CALIFORNIA CPA 19