What are the Ways of Adapting to the Global Accountant Shortage?

The scarcity of skilled workers, particularly certified public accountants, has become a prevalent issue across the country. Despite a low national unemployment rate, businesses are struggling to find new talent, leading to overworked employees and service delays.

However, the shortage of accounting staffing is a less discussed but potentially more significant problem. The absence of skilled accountants can have serious implications on the accuracy and reliability of accounting practices, which are fundamental to a functioning capitalist society.

This article will explore the current challenges faced by the accounting industry, the reasons for a long-term shortage of accountants, and the solutions being implemented by firms and practices to address the issue.

What Challenges does the Current Accounts Staffing Industry Face?

The accounting industry is facing numerous challenges that make it difficult to find and retain skilled workers. Although accounting has been a stable and respected profession, becoming an accountant is a rigorous and time-consuming process that requires a bachelor’s degree and an additional 30 college credits to become a certified public accountant (CPA). However, the demanding requirements don’t end there. Graduates often spend the first few years of their career in low-paying entry-level positions, working long hours to gain experience.

With a shortage of new accountants entering the workforce, current accounting professionals are stretched thin to handle the increasing workload. They are also facing an array of challenges such as geopolitical tensions, cryptocurrency volatility, and market fluctuations that require quick adaptation of policies and procedures. Additionally, day-to-day issues such as remote work security and high employee turnover are further compounding the challenges faced by the industry.

As a result, accounting firms and practices are struggling to find solutions to address the shortage of skilled workers. It remains to be seen how long these challenges will persist and whether they will subside as the economy stabilizes.

What Makes Accounting Shortage a Long-term Problem?

The accounting industry is facing a shortage of skilled professionals due to several factors, including demographic changes and the emergence of new career opportunities. A significant number of baby boomers who make up nearly half of the accounting workforce are retiring, leaving a considerable gap that needs to be filled. Unfortunately, fewer students are pursuing accounting majors or taking the Certified Public Accountant (CPA) exam, making it difficult to replace the retiring professionals.

Furthermore, the accounting industry is facing stiff competition from other sectors offering higher-paying and more glamorous jobs to new graduates. The tech industry, in particular, is luring young talent away from traditional accounting roles, further exacerbating the staffing shortage.

Additionally, the COVID-19 pandemic has played a role in the current staffing crisis. Many accountants have reassessed the high workload, long hours, and relatively low pay for the significant amount of education and effort required for the profession, leading to a significant number of professionals leaving the industry. These factors have created a long-term challenge for accounting firms and practices that are struggling to find solutions to address the shortage of skilled workers.

How to Navigate through the Account Shortage?

Florida is facing a shortage of skilled accountants, with demand far exceeding the available talent pool. The low unemployment rate in the state is a contributing factor, as qualified accountants are quickly snapped up by employers.

Furthermore, the shortage of accountants is expected to worsen in the coming years, with around 75 percent of current Certified Public Accountants (CPAs) projected to retire within the next 15 years, according to the American Institute of Certified Public Accountants (AICPA).

As an employer in Florida, navigating this shortage of skilled accountants can be challenging. However, there are strategies that can be implemented to attract and retain qualified accounting professionals for your business.

• Evaluate the Benefits Thoroughly:

In the current job market, qualified accountants have numerous job options available to them. Employers seeking to hire and retain top accounting talent must consider what sets their company apart and makes it an attractive place to work.

Beyond standard benefits like health insurance, employees value work-life balance more than ever. This means evaluating and offering benefits that help employees lead balanced lives, such as flexible work hours, the option to work from home, and a supportive work environment. Taking the time to understand and meet the needs of today’s job seekers can help companies stand out in a competitive job market and attract and retain top accounting talent.

• Prioritize the Nice-to-Haves and Must-Haves:

Due to the shortage of accountants, employers may need to adjust their expectations when it comes to hiring. Rather than holding out for the “perfect” candidate, it’s important to identify the essential skills a new hire must possess on day one versus the skills that can be taught on the job.

For instance, a candidate may have strong accounting experience but lack proficiency in a particular software your company uses. Instead of dismissing the candidate, consider providing training on that specific software or process. Being open and adaptable in your hiring process will help you find excellent accounting talent quickly and efficiently.

• Speed Up the Hiring Process:

As the demand for accountants continues to exceed supply, it’s important for employers to expedite the hiring process. However, this doesn’t mean making hasty decisions. It’s crucial to keep in mind that top candidates are likely interviewing with other companies as well. To keep them engaged, maintain consistent communication throughout the interview process and provide them with tentative deadlines for when you’ll have a decision.

Additionally, grouping interviews together can be more efficient than having candidates come in for separate interviews with different decision-makers. By speeding up the interview process without sacrificing quality, you increase your chances of securing top accounting talent.

• Continue Recruiting Even After You’ve Hired Them:

While hiring the right accounting talent is crucial, keeping them happy and motivated is even more vital for your business. The shortage of accountants means that retaining existing employees has become more critical than ever.

To avoid losing valuable talent, make sure to check in with new hires regularly after they have joined your company. Create an environment where employees can share their concerns with you, and make them feel appreciated for their contributions. Showing your appreciation can help boost morale, job satisfaction, and reduce employee turnover.

In Conclusion

If you’re struggling to find a permanent accountant for your team, it may be worth considering hiring a contract or temporary worker through Voyager Partners to help with the workload. This can be a great way to fill a staffing gap or address an immediate need while you continue your search for a long-term hire.

Working with a staffing and recruiting firm like Voyager Partners can also help you find the right talent, whether you need a temporary or full-time accounting professional. Despite the challenges posed by the current talent shortage, partnering with a firm that specializes in accounting recruitment can help you find the best fit for your business.