Is There a Pipeline Problem In Accounting?

Staffing services and consulting firms report that demand for accounting staff is rising. This may be true, but a major barrier to filling these positions is accounting’s waning popularity. You’ve heard the statistics: fewer students are choosing accounting as a major, and fewer CPAs are licensed each year. 

Recent declines in tax departments’ staff and revenue in the U.S. and Canada are adding fuel to this fire. It is easy to understand why accounting isn’t a popular major choice for college students — it is more about math than it is about business, and the field offers few exciting opportunities for recent grads. Companies may have to come up with better ways to attract and retain accounting talent if they want to see their tax departments return to glory.

What is the problem with the accountant’s pipeline?

Demand for good accountants is rising, but the supply of accountants is dwindling

The demand for accountants is always high, but it is especially high now due to the new tax laws. However, the supply of accountants is dwindling. There are several reasons for this.

First, the number of accounting graduates has decreased in recent years. This is due to a number of factors, including the 2008 recession and the increasing popularity of other careers, such as computer science.

Second, many older accountants are retiring. The Baby Boomer generation, which includes many accountants, is reaching retirement age.

Third, many accounting jobs are being outsourced to other countries. This is especially true of jobs that are routine and do not require a lot of creativity.

All of these factors have led to a decrease in the supply of accountants. This has caused salaries for accountants to rise. In fact, the Bureau of Labor Statistics reports that the median salary for accountants and auditors is now over $70,000.

Why do a lot of accounting firms struggle to deliver?

In the accounting profession, there is often a large discrepancy between what clients expect and what firms can actually deliver. Several factors account for this, including:

1- The complexity of accounting and tax laws, which are constantly changing.

2- The ever-growing demand for accounting services, which often exceeds the capacity of firms to meet.

3- The need for specialization in various areas of accounting, which necessitates the hiring of additional staff.

4- The high cost of doing business, including the cost of technology, staff, office space, and compliance with regulations.

5- The increasing competition from large accounting firms, which can offer a wider range of services and have more resources.

6- The trend towards outsourcing, which limits the work that accounting firms can do.

7- The reluctance of some clients to pay for services that they perceive as being not essential to their business.

8- The decision by some larger accounting firms to focus on consulting and other services that are more profitable.

9- The reluctance of some accountants to change with the times and embrace new technologies.

10- The shortage of qualified accountants, which has led to a rise in the cost of accounting services.

What is the solution?

When it comes to finding a good accountant, there is no easy answer. However, there are a few things you can do to make the process a bit easier.

Ask around for referrals. Talk to your friends, family, and other business owners in your area to see if they have any recommendations.

Use a service like Find an Accountant. This website allows you to search for accountants based on location, specialty, and other criteria.

You can also check out online reviews. This can be a good way to get a sense of an accountant’s reputation. Be sure to read reviews from both happy and unhappy customers to get a well-rounded view.

Once you have a few names, it is time to start interviewing candidates. During the interview, be sure to ask them about their experience, what services they offer, and how they would handle your specific situation.

Ultimately, the best way to find a good accountant is to take your time and do your research. By asking around, using a service like Find an Accountant, and reading online reviews, you should be able to find someone who is a good fit for your business.