The accounting workforce has shrunk by over 17% since 2020. That’s a loss of more than 300,000 professionals in just a few years. This isn’t just a statistic; it’s the reality behind why your team feels stretched thin and open positions remain unfilled for months. It’s the core reason so many are asking, why is there a shortage of accountants? The issue is twofold: a massive wave of retirements is on the horizon, and the pipeline of new talent isn’t strong enough to replace them. We’ll explore the data behind this trend, examine the root causes, and discuss how firms can adapt by creating a more modern, efficient, and appealing workplace.
[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][image_with_animation image_url=”61347″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”center” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”50%” max_width_mobile=”default”][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]If you’ve followed financial news over the past several months, chances are you’ve seen at least one headline about the ongoing accountant shortage. Maybe you’ve even experienced the pains of struggling to hire candidates at your firm.
Several factors contribute to the shortage, like mid-career CPAs changing professions, or early retirements spurred by the pandemic. But why has the accounting profession become so unattractive?
We’ve gathered three reasons for the shortage of accountants, as well as solutions for CPA firms to consider.
Reason #1: Growing complexities lead to greater responsibilities
The accounting profession is complex, demanding, and dynamic. Transaction implications are wide-reaching. The evolution of technology and organizational structures has caused a ripple effect on reporting requirements.
Associates face an ever-increasing workload, adding new responsibilities without eliminating repetitive tasks that need to get done. Someone needs to track depreciation and archive documents, right?
Solution #1: Invest in technology and employee development
Update your firm’s technology so associates can focus on critical thinking, rather than spending time on menial tasks that should be automated. The best candidates for automation include administrative and repetitive job functions.
Also, ensure employees feel supported in their learning and development. Give newer associates the autonomy to think through challenging issues and seek guidance when they get stuck.
Micromanagers: You have permission to give up control.
These adjustments will help entry-level staff develop decision-making and analysis skills. Associates will gain a sense of importance and find value in their work. Meanwhile, senior team members will have more help on complex projects.
Reason #2: Accounting students balk at long hours and unimpressive pay
It’s no secret that public accountants work long hours.
Accounting students understand they’ll need to “pay their dues” during their first few years before seeing significant pay increases. But today’s students don’t view the stability of an accounting career as an incentive to pay those dues.
Compared to positions in the finance and technology sectors, which often pay more and demand fewer hours, entry-level public accounting jobs seem less appealing. Especially considering the rigorous requirements for CPA eligibility.
Solution #2: Understand what associates value
Our discussion wouldn’t be complete without highlighting the importance of competitive pay. Salaries matter.
But if significant salary increases aren’t feasible, firms can make an effort to understand how to reward employees. Talk with potential accounting graduates and find ways to make them feel valued.
For example, do students prefer to receive mini gifts acknowledging their hard work, or would they rather celebrate the end of busy season with an employee happy hour? Younger students’ definition of “reward” might differ from that of an experienced manager.
Checking in with candidates can identify weak spots in job offers.
Reason #3: Accounting has a boring reputation
Students get a limited view of the accounting profession, and – let’s face it – accounting is not known for excitement. In contrast, finance and technology companies offer flashy titles in emerging sectors, especially with the advent of Web3 and blockchain technology.
Young professionals won’t realize the benefits of starting their careers in public accounting until they become immersed in the work.
The question is, how do you get them interested?
Solution #3: Help students understand the opportunities that accounting careers offer
Connect with college (or even high school) students to help them understand the advanced skills they’ll gain with an accounting career.
Illustrate how complex transactions rely on accountants’ decision-making. Highlight that associates have the opportunity to develop a broad understanding of corporate business functions, including finance, legal, and HR.
Moreover, meet students where they are. Find the social media platforms they use, and speak their language when sharing exciting news and company updates.
Younger generations may value a compelling post in their newsfeed over a formal press release.
Your CPA firm can attract candidates
Now that you’re familiar with three reasons for the accountant shortage, you know how your CPA firm can find a solution. You can help spur the change to attract more candidates into public accounting. Ease the strain on employees who have taken on more responsibilities in recent years. [/vc_column_text][image_with_animation image_url=”61352″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default”][/vc_column][/vc_row][vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#4f7eff” scene_position=”center” text_color=”light” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” advanced_gradient_angle=”0″ overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”No Line”][vc_column_text]
The Numbers Behind the Shortage: A Look at the Data
The accountant shortage isn’t just a feeling you get when you’re struggling to fill an open position. It’s a measurable trend backed by some pretty stark numbers. The data reveals a two-part problem: the current workforce is shrinking, and the pipeline of new talent isn’t strong enough to replace those who are leaving. This combination creates a perfect storm for accounting firms, putting pressure on existing staff and making it harder to grow.
A Shrinking Workforce
Let’s start with the current state of the profession. According to the UCLA Anderson Review, the accounting workforce has contracted by over 17% since 2020. That’s a loss of 340,000 accountants in just a few years, leaving only 1.6 million professionals in the field. For firms, this means fewer qualified candidates to hire and a heavier workload for the team members who remain. With fewer hands on deck, many firms are turning to technology to streamline their workflows and automate the administrative tasks that can slow a team down, ensuring they can still deliver for their clients.
An Aging Profession
Compounding the issue is the fact that a large portion of the existing workforce is nearing the end of their careers. About 75% of current CPAs are close to retirement age, with the average age hovering around 52 or 53. This means a massive wave of retirements is on the horizon, which will create a significant knowledge gap. When these experienced professionals leave, they take decades of expertise with them. This puts immense pressure on firms to not only find new talent but also to effectively train and mentor the next generation of leaders.
Reason #1: A Shrinking Talent Pipeline and High Barriers to Entry
One of the biggest drivers of the shortage is a simple supply-and-demand issue. Fewer young people are choosing to enter the accounting profession in the first place. The pipeline of new talent is drying up, and it starts long before they enter the job market. This is partly due to the perception of the industry and partly due to the significant hurdles aspiring accountants must clear just to get their foot in the door. These barriers can make other career paths look far more appealing from the outset.
Fewer Students Are Choosing Accounting
The interest in accounting as a major is declining. In 2023, only 1.4% of college students chose to major in accounting, which is a significant drop from 4% just ten years prior. The trend starts even earlier, with only 4% of high school students expressing an interest in an accounting career. In a world with so many options, particularly in tech and finance, accounting has to compete for attention. The profession has an image problem, and it’s failing to attract a new generation that is looking for dynamic, impactful work right out of college.
The 150-Hour Rule and CPA Exam
For students who are interested in accounting, the path to becoming a Certified Public Accountant (CPA) is a demanding one. The 150-credit-hour requirement is a major barrier, as it typically means students must complete an extra year of college. This adds significant tuition costs and delays their entry into the workforce. On top of that, they have to pass the notoriously difficult CPA exam. When faced with an additional year of school and a challenging exam, many potential candidates decide to pursue other fields that offer a quicker and less costly entry point.
The Shift from Record-Keeper to Strategic Advisor
The role of an accountant looks a lot different than it did a decade ago. Today, clients and employers expect more than just accurate record-keeping. They’re looking for a strategic partner who can interpret complex data, offer sound business advice, and stay ahead of ever-changing regulations. This shift positions accountants as crucial advisors at the decision-making table.
However, this evolution adds a new layer of responsibility. The fundamental tasks of managing documents, tracking transactions, and ensuring compliance haven’t disappeared. Accountants are now expected to perform these duties flawlessly while also providing high-level advisory services. Without the right systems in place, professionals are stretched thin trying to balance meticulous administrative work with strategic, forward-thinking analysis.
A Widening Skills Gap
The current shortage isn’t just about a lack of people; it’s about a lack of people with the right mix of skills for this new reality. The problem is twofold. First, a significant number of experienced accountants are reaching retirement age, taking decades of institutional knowledge with them. This creates a vacuum of senior talent that is difficult to fill.
At the same time, the pipeline of new talent is shrinking. Fewer students are choosing to major in accounting, with some reports showing a steep drop in enrollment over the last decade. This decline means firms are competing for a smaller pool of candidates who may still need years of training to develop the strategic skills the modern role demands.
Putting Salary into Context
On the surface, accountant salaries seem reasonable. The median yearly pay for accountants and auditors was $73,560 in May 2021. For senior accountants, that number climbs to an average of $84,090 and can reach as high as $112,000. These aren’t small figures, but they don’t exist in a vacuum.
When you place these salaries next to the demanding hours and high-stakes nature of the job, the appeal starts to fade for many graduates. Compared to other business majors like finance or tech, accounting often comes with lower starting pay and a more intense work-life imbalance, especially during busy season. For many students weighing their options, the long-term stability of an accounting career no longer outweighs the immediate trade-offs.
Technology’s Hidden Role in Suppressing Wages
Technology has been a double-edged sword for the accounting profession. On one hand, it creates efficiencies. On the other, it has quietly reshaped the job market for new accountants. As companies adopt software to handle tasks that entry-level staff used to manage, the need for these accountants has gone down, keeping starting salaries stagnant.
Prospective students are noticing this shift. They see that technology is making some traditional accounting jobs less necessary and are opting for other career paths. The solution isn’t to fight technology, but to embrace it strategically. The profession needs to move from performing routine tasks to working with technology to offer more valuable advisory services.
By implementing a comprehensive document management platform, firms can automate the low-value, repetitive work that bogs teams down. This frees up accountants to focus on analysis, client strategy, and problem-solving—the very skills that make the career rewarding and justify higher compensation.
The Business Impact of the Accountant Shortage
Delays in Financial Reporting
The accountant shortage creates more than just hiring headaches. It directly impacts a company’s ability to function, starting with one of its most critical processes: financial reporting. When teams are understaffed and overworked, deadlines get pushed. In fact, a recent study found that more than 40% of jobs have experienced delays in financial reporting simply because there aren’t enough accountants to do the work. This bottleneck affects everything from internal decision-making to external compliance.
These delays are not just minor inconveniences. They can have serious consequences. Rushing to meet deadlines with a lean team can lead to mistakes in financial statements and issues with regulatory compliance. According to research from Kent State University, these problems can erode investor trust and even result in legal trouble. When stakeholders can’t rely on timely and accurate financial data, the entire business’s credibility is at risk.
The struggle to keep up is widespread. It’s not just a few companies feeling the pinch; a significant number of both public and private businesses report difficulty retaining accounting staff, which worsens reporting delays. With fewer hands on deck, firms are looking for ways to make their existing processes more efficient. Implementing technology that streamlines document management can help overworked teams maintain accuracy and meet critical deadlines. Centralizing client files and using standardized templates are practical steps to manage the workload, even when a team is stretched thin.
Offer Flexibility and Modern Benefits
The traditional accounting career path—long hours now for a big payoff later—is losing its appeal. Today’s top talent values work-life balance, and they have options. To compete with other industries, accounting firms need to rethink what a modern benefits package looks like.
This means looking beyond salary. As Kent State University notes, many firms are now offering more flexible arrangements, like remote or hybrid work options. This isn’t just a trend; it’s a fundamental shift in employee expectations. Providing the right cloud-based tools for document management and client communication is essential to making these flexible models work securely and efficiently.
Consider what else you can offer. This could be flexible start and end times, compressed work weeks, or generous paid time off. Benefits that support mental and physical well-being also show that you care about your team as people, not just as employees. Making your firm an attractive place to work requires a modern approach to benefits.
Create Clear Pathways for Growth
With so many experienced accountants from the Baby Boomer generation retiring, there’s a significant knowledge and leadership gap to fill. Younger professionals are eager to step up, but they need to see a clear path forward. If they can’t envision their future at your firm, they’ll start building it somewhere else.
Create transparent career maps that outline the specific skills and milestones required for advancement. What does it take to get from Associate to Senior? From Senior to Manager? Don’t make it a mystery. This shows candidates you’re invested in their long-term success from day one.
Investing in professional development is also critical. The profession is changing, and firms need to invest in new skills and technology to keep up. Offer mentorship from senior leaders, provide training on new software, and support employees in earning advanced certifications. When you invest in your team’s growth, you’re also investing in the future of your firm.
How Technology Can Ease Your Team’s Workload
Our software does the repetitive tasks so your associates can focus on the work that gives them job satisfaction! With our auto-populating templates, digital signing, and document collaboration, your team could be happier and more productive.
We invite you to a free, no-pressure demo to find out what we can do for your associates. [/vc_column_text][divider line_type=”No Line”][/vc_column][/vc_row][vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#4f7eff” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” advanced_gradient_angle=”0″ overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”No Line”][/vc_column][/vc_row][vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#4f7eff” scene_position=”center” text_color=”light” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” advanced_gradient_angle=”0″ overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” centered_text=”true” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” advanced_gradient_angle=”0″ gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” gradient_type=”default”][nectar_btn size=”medium” open_new_tab=”true” button_style=”regular” button_color_2=”Extra-Color-1″ icon_family=”default_arrow” text=”Reserve your demo” url=”https://www.suitefiles.com/view-a-demo/”][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][/vc_column][/vc_row]
Solution #4: Automate Administrative Tasks
Let’s be honest, no one gets an accounting degree because they’re passionate about filing documents or chasing clients for signatures. Yet, these administrative tasks can easily consume a huge chunk of an associate’s day. This kind of repetitive work is a major contributor to burnout and reinforces the idea that accounting is a tedious profession. When your team is buried in low-value tasks, they have less time and mental energy for the complex problem-solving that actually makes a difference for clients.
This is where the right technology can completely change the game. A true document management system does more than just store files; it automates the busywork. With SuiteFiles’ features, you can automatically file client emails, create standardized documents from templates in seconds, and manage digital signatures all in one place. By taking these manual processes off your team’s plate, you give them back valuable time to focus on strategic analysis and client advisory services.
Freeing your team from administrative burdens does more than just make your firm more efficient. It directly impacts job satisfaction and professional growth. When associates can apply their critical thinking skills to meaningful challenges, their work becomes more engaging and rewarding. They start building the analytical and decision-making skills that define a successful career, turning a job into a long-term growth opportunity. This shift not only helps you retain your current talent but also makes your firm a more attractive place for new graduates to work.
Frequently Asked Questions
Is increasing salaries the only way to attract new accountants? Competitive pay is definitely important, but it’s not the only factor that matters to new graduates. Many candidates are looking for a workplace that values their time and well-being.
Consider offering benefits like flexible hours or hybrid work arrangements. It’s also crucial to show them a clear path for career growth. When you invest in their development and provide tools that make their work more meaningful, you create a compelling offer that goes beyond the paycheck.
How does the accountant shortage impact my firm beyond just hiring difficulties? The most immediate impact is on your current team. They are likely overworked, which can lead to burnout and a higher risk of errors in their work. This strain can cause delays in financial reporting, which affects your clients and can damage your firm’s reputation. Over time, these operational bottlenecks make it difficult to serve your clients effectively and can hinder your firm’s ability to grow.
My team is already stretched thin. How can we find the time to implement new technology? This is a common concern, and it’s a valid one. The key is to view new technology not as another task on the to-do list, but as the solution to being stretched thin. The right document management platform is designed to reduce your team’s workload from the start. By automating repetitive tasks like filing emails and creating documents from templates, you can free up hours for your team almost immediately. The initial time investment pays for itself quickly by creating more efficient workflows.
How can a small firm like mine compete with larger companies for top talent? Smaller firms have unique advantages that can be very attractive to candidates. You can offer a more personal work environment where new associates get direct mentorship from senior leaders, an opportunity they might not get at a larger company. Small firms can also be more agile, allowing you to implement flexible work policies and create a strong, supportive culture that larger corporations often struggle to replicate. Focus on these strengths in your recruitment efforts.
What’s the first step I should take to make my firm a more attractive place to work? A great first step is to talk to your current team. Ask them about their biggest challenges and what parts of their job are the most tedious or frustrating. You will likely find that a significant amount of their time is spent on low-value administrative work. Addressing these internal pain points, often through better systems and technology, not only improves morale for your existing staff but also helps you build a more modern, efficient workplace that is naturally more appealing to new candidates.
Key Takeaways
- Recognize the shortage has two fronts: Fewer students are entering the profession due to its demanding entry path and reputation, while the role itself has expanded to require more strategic advisory work from already lean teams.
- Compete for talent beyond salary: Today’s graduates prioritize work-life balance and growth opportunities. Attract them by offering flexible work options and showing them a clear, achievable career path within your firm.
- Automate low-value tasks to retain your team: Free your accountants from administrative burdens like document filing and chasing signatures. Using technology to handle these tasks reduces burnout and allows your team to focus on the strategic work they were hired to do.
