There is a noticeable shortage of accountants in the United States.
The shortage is even affecting our work. Six states still need to file their 2023 annual comprehensive financial reports. We analyze those reports for our yearly Financial State of the State report. We have heard more than once that one of the reasons for the delay is a need for accountants.
The U.S. Bureau of Labor Statistics (BLS) projects a 6% growth rate in employment for accountants and auditors from 2021 to 2031, which is faster than the average for all occupations. This growth reflects the increasing demand for accounting professionals. (Source: U.S. Bureau of Labor Statistics)
A 2023 survey by the American Institute of CPAs (AICPA) found that 75% of firms are struggling to fill accounting positions, with many reporting significant hiring challenges and increased workloads due to staffing shortages. (Source: AICPA)
This shortage has been a concern for several years and affects the private and public sectors. Here are some possible factors contributing to this situation:
Increased Demand: As businesses and governments face complex financial regulations and reporting requirements, the demand for skilled accountants grows. The need for compliance, financial transparency, and strategic financial management drives this demand.
Retirement of Experienced Professionals: Many experienced accountants are reaching retirement age, creating a gap in the workforce that younger professionals are not adequately filling.
Educational and Certification Challenges: While accounting programs in colleges and universities produce graduates, the rigorous demands of certification exams (like the CPA exam) can deter potential candidates. Additionally, becoming a fully qualified accountant involves significant time and financial investment.
Competing Career Opportunities: Many students and professionals are attracted to other fields offering competitive salaries and working conditions, sometimes making accounting less attractive.
Workload and Job Satisfaction: The accounting profession can involve long hours and high-pressure deadlines, leading to burnout and reduced job satisfaction, further exacerbating the shortage.
Technological Changes: The rise of automated accounting tools and artificial intelligence has shifted some of the traditional roles of accountants, requiring new skills and creating a need for professionals who can adapt to and manage these technologies.
This shortage affects various sectors, including public accounting firms, corporate finance departments, and government agencies. According to Fortune, the accounting shortage has led to a wave of mistakes in earning reports. It has been particularly challenging for smaller organizations and public sector entities, such as municipalities and schools, which may have trouble attracting and retaining qualified accounting professionals. This is a serious problem.
One way to address this issue is by donating to the Truth in Accounting project at the University of Denver, which will enable us to provide scholarships to deserving students and attract more people to this vital field. Encourage the young people in your life to pursue this line of work or consider changing careers yourself.
Please contact info@truthinaccounting.org if you would like to set up a scholarship fund.