The U.S. accounting industry faces a critical talent shortage that has only intensified recently.
This decline in talent is largely due to a combination of factors, including stringent educational requirements, less competitive compensation, and an increasingly demanding work environment that has led to widespread burnout among professionals.
Since 2016, there has been a consistent drop in the number of students graduating with accounting degrees and pursuing CPA certifications. In 2023, the number of individuals taking the CPA exams fell to just over 67,000, a significant decrease from previous years.
This decline is partly attributed to the rigorous educational requirements, such as the 150-hour rule, which many potential candidates find discouraging due to the additional time and financial investment required without a commensurate start salary increase.
The accounting profession has long struggled with an image problem. It is perceived as less exciting compared to other fields like finance and technology. This perception, combined with lower starting salaries relative to other business-related majors, has made it less attractive to young professionals. Additionally, dissatisfaction with pay, particularly in the context of rising inflation, has further discouraged new talent from entering the field.
Another critical issue is the demanding work environment in accounting, particularly in public accounting firms. Long hours and high-stress levels have led to significant burnout, especially among younger professionals. This has resulted in a higher turnover rate and difficulty retaining talent within the industry.
Efforts are being made to address these challenges, including discussions about revising educational requirements, improving the work environment, and rebranding the profession to make it more appealing to younger generations.
However, the industry is still grappling with these issues, which threaten the sustainability of the accounting talent pipeline in the U.S. (The CPA Journal, IFAC, SEC.gov).
In an environment where the accounting profession is grappling with a shrinking talent pool and the pressures of rapid technological change, offshore outsourcing partners provide a lifeline for CPA and accounting firms.
By leveraging experienced professionals from global markets, these firms can mitigate the impact of local talent shortages, maintain operational efficiency, and focus on strategic growth.
Offshore partners not only help manage day-to-day tasks but also offer specialized expertise that can enhance the overall quality of service.
Accseed is committed to supporting accounting firms in navigating current challenges and continuing to deliver exceptional value to their clients.