💭 Thoughts on the talent shortage....
First of all let's provide a little context for those outside of the Accounting industry that may be unaware.
Currently the Accounting field is facing a MAJOR TALENT SHORTAGE. This has been exasperated due to lower number of Accounting degrees and the high number of retirees. Basically more people are leaving the industry than entering. This presents a simple math problem. 😮💨
Accounting work is not getting any simpler. Despite major advancements in Technology, let's be honest, I haven't found a system that can handle full service accounting from GL entry to account reconciliation to GAAP compliant Financial reporting. The solutions that do exist are designed for Enterprise level companies, not your typical small business. I’ll admin there are many specialized tools that have helped streamline specific accounting and finance operations(AP, AR, Payroll, Budgeting) but no tool does it all(or at least no tool does them all WELL). 🤷🏾♂️
I won't pretend like I have a crystal ball with all the answers(if anybody does, I will pay handsomely for it). But I do have vast experience working in Accounting and I have seen first hand the impact this shortage has caused. Here are my insight into the challenges the industry faces along with how we can potentially solve this existential problem. Below are a few thoughts: 💭
Address Incoming pipeline
Essentially we need more Carrots. Students have a variety of attractive career options and if the industry does not provide better levels of Recruitment and PR, the number of Accounting degrees being issued will unfortunately continue to dwindle.
CPA and Certifications need to be more accessible
There are many well written pieces about the barriers the CPA exam currently presents. Some states have already made progress in updating the requirements, for example my home state of Minnesota has introduced legislation(HF 1749 and SF 1660) to expand options for licensure. These initiatives need to be combined with the other strategies to be really effective.
Retirees need succession plans that include diversity imperatives and well thought out strategies to transition business.
Soon there will be "The great accounting Exodus" as some are calling it. That may be a little dramatic but the numbers don't lie, over 300,000 Accountants have resigned or retired in recent years according to the BLS. We need a healthy pipeline to replace these retiring professionals with succession plans for clients and teams to seamlessly transition as needed.
Regardless of the path we take. I hope we can come together to ensure the Quality of this vital industry and setup a bright future for the next generation!!