Is there a finance shortage?
Finance—and accounting especially—are experiencing a shortage of qualified professionals. The number of graduates choosing accounting as a major has declined since 2016. The WSJ reports that 82% of the accountants who exited the profession in 2023 had at least six years of experience.
Last year more than 720 companies, from Advance Auto Parts Inc. to online legal services provider LegalZoom.com Inc., cited insufficient staff in accounting and other departments as a reason for potential errors. That's up 30% from 2019, according to an analysis by equity research firm Hudson Labs for Bloomberg News.
The US is facing a significant shortage of qualified accountants, creating a prime time for individuals like you to pursue a Certified Public Accountant (CPA) license. This credential opens doors to high-paying careers in various industries and even international opportunities.
This shortage is a result of various factors, including voluntary resignations, the retirement of Baby Boomer accountants, and a lack of interest among young people due to misconceptions about the profession. As a result, there will be a competition for talent, especially for larger international firms, in 2024.
The Great Accountant Shortage refers to the severe reduction in skilled accountants in the U.S. in the last several years. From 2019 to December 2022, there has been a 17% decrease in the number of employed financial auditors and accountants in the country.
Monotony and lack of fulfillment. Numerous essential accounting tasks, such as tax prep and monthly financial reporting, are highly repetitive and routine in nature. They leave little room for creativity, and require meticulous attention to detail.
No. Realistically speaking, accountants will never disappear entirely. The work they do is too important to be left behind in today's sweeping employment shifts. However, the accounting industry as we know it is disappearing.
Fewer people are selecting accounting as their career, citing low salaries compared with industries such as tech and banking. Young workers are wary of the requirement of 150 college credit hours for getting a certified public accountant license, posing additional costs and time commitment.
Fewer people are graduating with accounting degrees, according to a new report, although most programs are optimistic about enrollment. A survey from the American Institute of Certified Public Accountants (AICPA) found that bachelor's degree completions dropped 7.8% between the academic years of 2021 and 2022.
There Are 340,000 Fewer Accountants, and Companies Are Paying the Price.
Will CPAs be replaced by AI?
The Big Four accounting firms are investing heavily in generative artificialintelligence (AI), but the technology will not replace accountants, Accounting Today reported. Instead, AI will augment their productivity and efficiency by taking over mundane tasks such as data entry.
Supply of accountants are more than the demand for them, this makes organize price them low and undervalue them.
While the CPA has been steadily decreasing, the interest in the CMA has been dramatically increasing. There aren't fewer people pursuing accounting as a career path, as some would have you think, but there is a considerable shift in how professionals define their career paths.
Finance and treasury teams require specialist knowledge and expertise, so it's no surprise that they're feeling the impact of this broader issue. In fact, the 2023 AFP Compensation Report found that almost 60% of treasury and finance teams are facing a talent shortage.
If you're wondering whether doom and gloom stories about financial advisors becoming obsolete, here's some reassurance: people will always need financial advice.
CPAs are retiring or leaving the industry early
There are a few reasons for this mass exodus: 75% of the CPA workforce reached retirement age in 2020. Experienced accountants are taking jobs in finance and technology, according to SHRM. Some accountants left during the Great Resignation, according to Business Insider.
Accounting jobs are in high demand—many pay over $100,000 and can be done from home. With only a few days to go before the April 15 filing deadline, tax season is almost over — but for many accountants in the U.S., work is hardly slowing down.
The Bureau of Labor Statistics projects 4.4% employment growth for accountants between 2022 and 2032. In that period, an estimated 67,400 jobs should open up. An accountant is a person who keeps or inspects financial records. These professionals are organized and detail-oriented.
As industry affects CPA earnings, so does company size. Large firms are willing and able to pay a premium to attract top talent. The more employees and assets a firm has or the more clients they service, the more complex various accounting functions become, and accountants' salaries reflect that.
Imagine a world without accountants. It's not as distant as you might think. Over 300,000 accountants have left the field in the past two years, and fewer students are pursuing accounting majors or the CPA exam. Forensic accountant Kelly Richmond Pope explores this alarming decline in interest in accounting.
Is bookkeeping a dying field?
With more softwares and platforms being released every day, more tasks are being automated – and one might wonder if traditional roles, such as bookkeeping, are on the verge of extinction. So is bookkeeping a dying profession? The profession is not dying; instead, it's evolving to meet the demands of the 21st century.
The audit industry is at a crossroads: as market expectations are shifting, technology is empowering auditors and improving quality, the case for audit's evolution is growing, and more and more businesses are realizing the importance of the audit and assurance industry.
While hiring has slowed and lay-offs increased in many service sector jobs (particularly in the Tech space), the Accounting field is still as hot as ever. Largely driven by a global Accountant shortage the need for in-demand Accountant talent is higher than ever.
Managerial Accounting
It is considered difficult because it requires a thorough understanding of accounting principles and the ability to apply them to real-world scenarios.
Plus, the accounting field is expected to keep growing at a rate much faster than average for all occupations. An accounting degree might be more flexible than you think: An accounting degree is a great foundation for any career in business.
