By Mike Varney, Vice President, Finance and Operations at Extend.
The alarm bells in accounting have been ringing for years: fewer people want to join – or stay – in the profession. The American Institute of Certified Public Accountants (AICPA) said in its “2023 Trends” report that the percentage of accounting graduates fell 7.8% between 2021 and 2022, after steady decreases of 1-3% since 2015-16. And according to the Institute of Management Accountants and staffing firm Robert Half, more than 1 in 10 accountants in the U.S. expect to leave the profession in the next 12 months.
Certainly, this data has a story to tell. But is that story one of a massive shortage of human resources that must be fully replaced?
There is an alternative way to evaluate the issue. It’s not about convincing an equivalent number of people to fill the seats that have been emptied. It’s about attracting the type of high-potential talent that can more effectively meet the needs of their organizations by fully embracing and leveraging new technologies to become exponentially more efficient. This creates accountants who can deliver more impactful outcomes for their organizations, thus creating an opportunity for companies to hire “leaner and meaner” accounting teams.
Great accountants expect interesting roles and tech-forward careers
Ask someone outside of our profession to imagine an accountant. Maybe they see someone behind a desk with their head buried in a spreadsheet, taking breaks only to refill their coffee cups. In too many companies, this scenario holds true. Accountants are not collaborating enough with other stakeholders. The new wave of exceptional accountants expects to get out from behind their desks to drive more value for their organizations. Accounting roles must evolve to allow for this shift.
If you bring on ambitious professionals and expect them to fill their days manually reconciling credit card statements or entering invoices into your ERP, they aren’t going to stick around for long. A recent ShareFile survey found that “…accountants believe a lack of automation…is holding them back from doing their best work. Seven out of 10 say having to handle a large number of routine accounting procedures without the benefit of automation is a problem…”
I’ve seen this in my own career. In one role, I led the implementation of a business management suite that gave the team a cloud-based budgeting function and replaced spreadsheets with instant analysis and reporting. Later, I had the opportunity to adopt an AI tool to record invoices directly to the company’s accounting software, saving my team hours every month on manual data entry. And today, I use my company’s own virtual credit card and spend management app to help control spending and close the books faster. Those technology choices and others save time and money, and open opportunities for more strategic work that high-potential individuals crave.
5 Ways to attract high-potential accountants to the field
We don’t need to replace every accountant who walks away from the profession. But those who enter the field need to be the best the job market has to offer. Here’s how to attract them to accounting:
- Make the education requirements for CPAs less onerous and expensive.
An accounting undergraduate will take 30 more credit hours than their peers in other majors, and the “reward” for that sacrifice is paying thousands of dollars for CPA exam prep classes, not to mention another $1k+ just to take the test. The American Institute of CPAs and the National Association of State Boards of Accountancy have proposed pathways to a CPA license that combine education with work experience, providing flexibility for more entrants to the profession while maintaining the rigor needed for public confidence in CPAs.
- Pay a more attractive entry-level accounting salary.
The potential for accounting roles to require long hours for low compensation is not appealing to many possible entrants to the profession. Those salaries look all the more paltry when weighed against the cost of education necessary to become a CPA, and the rise in other living costs that weigh on recent graduates. If the accounting profession wants to attract the best talent, they need to pay up. (However, companies can keep costs in check by attracting higher caliber talent and empowering smaller teams with the right technology.)
- Teach students about the technology that will drive the future of their field.
Artificial intelligence, automation, spend management, and other advancements continue to affect what accounting roles look like. The college curriculum should be updated to reflect this evolution. Students must learn about the latest technology alongside lessons on the principles of accounting to be better equipped to deliver immediate value upon entering the workforce. This change in skill-set will also enable new entrants to better maintain a healthy work-life balance, a critical area of focus for younger generations.
- Evolve the role of accountants from bookkeepers to strategic partners.
I have seen a significant number of effective accountants strive to maneuver into roles in corporate finance or FP&A departments. The reason is usually pretty consistent; they seek to be “part of the conversation.” If the industry wants to attract the best talent, the role of the accountant must evolve. Accountants can be strategic partners in complex areas such as revenue contract structures or M&A planning. Give them a seat at the table if you want to attract and hire high performing talent.
- Accounting + ESG = more engaged Gen Z workers.
In its “2024 Gen Z and Millennial Survey,” Deloitte found that nearly all
respondents ranked purpose-driven work as important to their overall job satisfaction and well-being. Connecting entry-level accountants to necessary environmental, social, and governance (ESG) functions would benefit both new entrants to the field and the businesses that employ them.
While it is true that fewer individuals are entering the profession, the combination of the right talent, right roles and the right tools will create accountants who are more “powerful” than ever. This will mitigate the shortage seen in the industry today and deliver significant value to businesses.
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Mike Varney is the vice president of finance and operations at Extend, which makes innovative payment solutions accessible through trusted bank partners, setting a new standard for credit card services. With more than 12 years of experience in both large-scale and high-growth businesses, Mike has managed all aspects of corporate finance functions, including forecasting and budgeting, financial reporting, external audits, investor relations, and M&A due diligence. Prior to Extend, Mike held various finance and accounting roles at IAS, BSE Global, MLB Advanced Media, and Deloitte. He earned an MBA from NYU Stern School of Business, a B.S. in finance and accounting from the University of Maryland Robert H. Smith School of Business, and holds his CPA license.
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Tags: Accounting, Technology
