Showcasing Change Is the Way to Boost Accounting Talent Pipeline

Accountants love their jobs. Sixty-nine percent say they experience job satisfaction, and 82% would recommend their career to young professionals, according to recent QuickBooks data from a survey of 2,000 US accountants. Yet there’s a dearth of young talent entering the field.

Fewer people are graduating with accounting degrees, according to the American Institute of Certified Public Accountants, and the number of graduates sitting for the CPA exam has plummeted—to slightly over 32,000 in 2021 from almost 50,000 candidates in 2010. Combined with the increasing number of retiring baby boomers, it’s harder than ever to hire a qualified accountant, whether you’re a Big Four accounting firm, a mom-and-pop small business, or a Fortune 500 company. Accountants pinpoint fewer graduates coming into the profession as one of the biggest obstacles to hiring and retention.

The shrinking presence of accountants leaves businesses vulnerable. Today, only 50% of businesses survive beyond their fifth year. Succeeding beyond that time period is positively correlated with being connected to an accountant. Accounting professionals manage and track money flowing in and out of a business, provide strategic business counsel, help maintain compliance, and navigate complex tax situations. This financial guidance leads to a profitable, growing business.

The good news is that accountants can attract more young professionals to pursue this career by shifting the narrative around what it means to be an accountant. They can showcase how the industry uses innovative technology; demonstrate the field’s commitment to diversity; and emphasize their dedication to mentorship, training, and ongoing education.

Embrace Cutting-Edge Technology

The accounting industry doesn’t get credit for how dynamic it is. With annual tax law changes and the constant ebbs and flows of working with small businesses, accountants embrace change. Accountants must apply this adaptive mindset to the technology they use as well—not only to better serve their clients, but also to appeal to the next generation entering the workforce.

Artificial intelligence, machine learning, and automation tools attract younger employees because they appear in other areas of their lives. Such technology eliminates the more transactional work of accounting and leaves room for more engaging, strategic planning. It transforms the perception of accounting as an industry that’s stuck in the past to one that looks ahead toward the future.

Thankfully, nearly half (48%) of accountants in a recent survey said they’d be investing in AI in the next 12 months. An additional 48% said they’d be investing in automation solutions, and 47% said they’d invest in blockchain technology. We need to ensure people outside of the accounting industry see its evolution.

Move Away From Outdated Narratives

The outdated stereotype of accountants as bean counters doesn’t help the profession appeal to younger generations. Nor does clinging to dated business norms or practices. Gone are the days of measuring someone’s dedication or potential with a “first one in, last one out” mindset. Embracing remote work and allowing people to flex their hours is worth exploring given 68% of Americans would prefer to be fully remote, according to a 2022 study from Zippia.

The accounting industry also must counteract outdated narratives. For one, the industry is overwhelmingly perceived as white, male, and aging. However, recent data shows the majority (57%) of US CPAs are women. The accounting industry should continue to support and hire historically marginalized groups, including women, ethnic minorities, and those in the LGBTQ community. According to Monster, 83% of Generation Z job candidates said that a company’s commitment to diversity and inclusion is important when choosing an employer.

Focus on Mentorship, Assistance, and Training

Today’s accountants can further address the talent pipeline by mentoring the younger generation. According to our recent report, more than a third of accountants (36%) identified mentoring younger professionals as a key way to create a competitive advantage.

Additionally, the high cost of ongoing education, training, and certification may deter young talent from entering the field. Sitting for the CPA exam costs nearly $1,000, not to mention the cost of getting a master’s degree in accounting and the required professional education to maintain a CPA license. Businesses and firms that can afford to assist young accountants with qualification costs and exams should do so.

Unlike other professions, accountants must track near constant changes in tax and compliance to do their jobs. Add to this the proliferation of technology, and it’s clear why ongoing investment in training is vital to those who want to advance. We need to support young accountants in these efforts by coaching them one-on-one, sending them to industry conferences for learning and networking opportunities, and covering certification costs.

Even though the overwhelming majority (82%) of accountants would recommend their career to young professionals, young people are entering the industry less frequently. We can solve the talent pipeline problem through some fairly simple changes, avoiding a shortage in this critical business role.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Jeremy Sulzmann is the vice president of the QuickBooks partners segment at Intuit, serving accountants and developers.