Why There Is a Talent Shortage in Accounting?

[@SmithJonny45]

I don't think the people who might be interested in accounting think it's boring. To everyone else, sure. But I think the long hours and low pay finally caught up with the old owners. It's just not worth it when there are so many other options.

[@emilyau8023]

I work in the tech field, and I'm thinking of switching to accounting because it has way more job stability than most other jobs. In certain companies, you can have great work life balance as an accountant. Plus, there's potential to become a CFO or financial manager. Yeah, sure, the tech industry pays well starting out, but none of that matters if your chance of getting laid off is higher and the 100+ technical interviews it takes to even land one is ridiculous. The number of different technologies and skills asked for us to know is even crazy. Yeah, I'd prefer the accounting industry.

[@gallisrojae]

I agree, accounting is not boring. Your firm can definitely affect your experience depending on how they show that they value their employees or not. I work at a firm that has zero staff appreciation. Nonexistent, not even a summer outing. Makes it difficult during busy times to stay motivated.

[@accountinginfluencers]

The game is changing. Accounting firms who don't appreciate their staff or don't embrace remote working options will definitely struggle in the labor market.

[@michaelsmith5463]

Physician Assistant

[@magician_aleks2726]

Pros and cons. But that could all change eventually to ai. All jobs are at stake😂 I'm talking ai humanlike capabilities. ​@@emilyau8023

[@dre5229]

The problem with all these professions is that there is a lack of willingness to train and mentor the new generation.

[@michaelsmith5463]

The whole shift from "Company-trained" to "Self-trained" via college shifted the costs, and thereby the proverbial ROI. Companies expect ppl to walk in the door and perform, but theres no college course for that.

[@therealmcgoy4968]

I work in the trades and this is something I have observed. You are looked down upon for asking for help or how to do something. They will say "oh are you stupid or something" LOL. I feel like plumbers, electricians and accountants might garner more respect than my field. I work in hvac. Its expected you know everything when you finish trade school. I am 3 years in and want to get out. I am pursuing an accounting degree online right now. I hope accounting is the opposite of hvac.

[@dre5229]

@@therealmcgoy4968 as an accountant I experienced the same lack of training but it was easier to learn on your own than when I worked in manufacturing. Been in the field for 14 years now and I don’t regret. Of course the company and supervisor makes a big difference. Good luck 😁

[@gumpgump3635]

I am dealing with this now I can't even get an internship because I don't have enough experience how the hell does that even work. I thought the whole point of an internship is to get experience. This degree feels like a waste of time and I am in my final year. I worked 3 years at a factory prior to this and I feel like going back to one because the pay is honestly better than most accounting jobs in my area. Don't fall for the crap that colleges tell you about it being a great opportunity. There is a reason that there were barely more than 10 people in my accounting class.

[@dre5229]

@@gumpgump3635 that’s way worse than I thought things were. I’m assuming they want to have a full time worker at intern level pay. Hope something works out before you graduate.

[@Favion1000]

The number one reason for the low talent pool is compensation. Accounting is very specific and requires serious education. For example, firms are asking for talent that requires 6 years education but pay recruits like someone who has two year degree is radiology tech. If that’s the case why would anyone choose accounting over the radiology tech course.

[@accountinginfluencers]

I've heard that lawyers with the same number of years qualifying start at around a third more than accountants with their packages.

[@CarlGerhardt1]

Not only that, but public accounting is between two to three times more complex than 20 or 25 years ago with all the ridiculous extra computer garbage they have layered onto it. (standard Excel sheets and Quickbooks or an integrated accounting program like SAGE or Peachtree should be all we have to deal with), not to mention how bad the tax code is now.

[@Michael-t8u2s]

Keyword, "talent." There's no shortage of people with accounting degrees, only a shortage of highly experienced pros willing to work for peanuts.

[@gumpgump3635]

This was a great video. I am in my final year of my bachelor's degree in accounting and have applied for many internships and jobs in public accounting because that was my plan, but have barely heard back from any. I cannot even get an internship as they say I don't have enough experience. How does that even work the whole point of an internship is to get experience. I even had relatives that worked at the places I applied and had them refer me. I would not advise anyone to enter this career at this time due to the inability to even get your foot in the door. I know accounting is not the only profession going through this, but it has to be in about the worst shape as the whole system feels broken. I am wondering if there any other ways I could use this degree, and what other business related jobs can you get with it?

[@coffeepandacat]

I'm starting my accounting journey this fall🎉🎉🎉 Before this I've been a pre-health student. I was going to do pharmacy school. I've work as a pharmacy technician for 3 years and I've seen enough. No more. No nursing, *HELL NO*. And the field of pharmacy is destroyed. Healthcare is not for me. Currently in an alternative role as a pharmacy technician and I work in an office. I love it. I want a job that emulates this environment forever or possibly offers remote work.

[@emilyau8023]

What would be attractive to my generation for this industry is if they had accountant salaries start at a particular state's middle class income for industry staff accountants. For firms, starters should be paid reasonably to their cost of living, and if they are working for long hours, pay overtime. If that happened, accounting would attract more people cause then there's stability and being middle class again. And no, in the U.S. 40k-60k is not enough to live comfortably in high cost of living states. Increase the pay, and it will speak to my generation.

[@accountinginfluencers]

I completely agree!

[@Chillspace-ki2qt]

Exactly !

[@ashfordj81]

High stress, high hours, relatively low pay, but pay is almost irrelevant due to the first two factors. The best opportunity you'll find is a client poaching (rescuing) you from public accounting.

[@accountinginfluencers]

Public accounting can be wonderful but the profession doesn't help itself in telling enough success stories about a career in this field.

[@theavalanchman]

“Cant give you experience if you don’t have experience” makes the degree completely useless. Took me two full years to finally land a job.

[@emilyau8023]

Critically think about what you just said. In order to move up the ranks of a position, many jobs will ask for a master's degree. The only way to get a master's degree is having a bachelor's degree. During your bachelor's degree, you should have used your university's network, internships, projects to stand out. Only 30% of companies have lifted the requirement of a bachelor's degree, and that doesn't actually prove it's being respected and consistently implemented in practice. Even during this difficult job market bachelor degree holders have a better employability chance than those without. So, no degrees with good ROI, which can be researched prior to getting a major, aren't useless. It's very much about strategic planning and using that degree effectively.

[@airbound1779]

@@emilyau8023who paid you to say this?

[@ezavala410]

@@airbound1779 common knowledge that college students who find internships and work experience before graduation are more likely to have a job. It shows that you are career driven and have goals. Not just coasting, it shows more maturity

[@ikaZi84]

@@emilyau8023 So anyone above 30 going into the field should just off themselves. I'm 40. I can't afford to do an internship to get experience to earn $35k/year.

[@connorlewis3946]

​@@ezavala410if the degree is not enough and you need to go above and beyond to just get the job then what was the point of a degree?

[@brooklynharris2881]

The partners earning millions per year compared to the slave workers on a meager wage is a factor in people shunning an underpaying elitest business model such that accounting holds. If overtime is an exception and not the rule, is properly compensated, and life/work balance is respected, this may change the landscape of accounting.

[@stephaniesmith5972]

It is true that you work 60-80 hrs a week during quarter end and year end. They need to be honest about the hours. We are needed but it’s hard work and can be stressful. Also the month end quarter end and year end has no flexibility for time off.

[@BaMK0000]

Honestly it's a compensation problem too. If accountants were compensated as well as tech workers then there would be a greater degree of tolerance for this.

[@wz8881]

I left corporate tax (ASC 740) for software engineer role. The main thing driving the change was long hours for minimum pay. In addition, my new employer offers 6 weeks of paid paternity leave at 100% which is fantastic. Oh and I am fully remote.

[@marpleloo65]

Glassdoor will destroy any self-perception a firm has of itself. Their reputation is only as good as the people who exit it.

[@krzysztofkopciewicz6606]

Great talk, thank you. I am certified attorney from EU and due to the saturated law services market, I switched on tax (Transfer Pricing mostly). Career development around accounintg is phenomenal here. I am planing to go for ACCA.

[@ThomasMorris-o7e]

As a recent tax preparer with a B.S. in Econ and now taking accounting classes at a J.C. to apply to a Master's in Accounting program, I can say the biggest shock to me was the lack of B.A./B.S. programs. You can get an Associates, a Certificate, a Master's , a CPA, an EA, etc., but there aren't many Bachelor degree programs in accounting in Northern California, at least that I found... many Master's programs, though. So undergrads choose a different path from the beginning.

[@michaelsmith5463]

HVAC training is ~$10k...Will start at $24/he plus commissions. Why endure 6 years & student loans for accounting??

[@Griff_Files]

Trades are coming back. Welders can pull 70-80k easy if you do more than the minimum. If you're a self starter and willing to invest in yourself OR willing to be on the road, you can pull 150-180k easy. Work in the industry long enough and become a manager at a large company and you can pull 200k+. The game is chasing the industry if you want to make money. The more the company makes, the more you can make. Work in an auto shop welding cars? You wont make much, maybe 50k. Work in oil fields or shipyard? You WILL make a lot of money!

[@albertmatunda5387]

,​@@Griff_Files,You can't do trades when you are old.

[@malinoisnation9392]

You obviously have never climbed around in a nasty 140 degree attic all day. 😂

[@eikajung5486]

I thought this was a very interesting talk. I used to work at NetSuite, which is a tech company that hires a lot of former CPAs in all customer facing departments. It was not evident to me that having the CPA really made those roles more successful in sales, solution consulting, etc. since the job was not allowed to give accounting advice, only empathy. But it certainly helped those folks land the job. Hearing this interview also drew out the subconscious thought I had in considering a CPA - which was that I don’t really want to be a CPA, I just want to use it as additional credentialing. A bit like getting an MBA. I agree fully that if tech companies are recruiting CPAs, it would be hard for someone not to go down that road. Anyway, just some thoughts in agreement

[@therealmcgoy4968]

I am an online accounting student. My only gripe with the learning is that they throw so much information at you so fast its like your brain doesnt have time to fully absorb everything. The major things like the accounting equation, some cost/managerial accounting, debits and credits and financial statements are the only things I have been able to retain. I am a alittle worried over this though as I would be terrified in a job interview if they asked me trick questions outside of the basics. Originally I was studying computer science but discovered I am pretty bad at programming and not sure I enjoy it. Currently I am in the trades but want to get out, I dont want to destroy my body anymore.

[@malinoisnation9392]

U can take intro to accounting first

[@malinoisnation9392]

I couldn’t do accounting online. I love my 3hrs of class time per week

[@rosed2688]

It's actually the low pay for those in private companies..Low pay, long hours undervalued as considered as non valuable job compated to other profession, until accountants resign..whih is very very sad..progression too,is so slow, and if you resign thats the time they will counter offer

[@besverjin5130]

I think the disconnect is that firms that hire accounting firms or accountants don’t want to pay top dollar for “regulatory work” which is how accounting is perceived. But accountants want better pay. Companies aren’t willing. Standoff.

[@accountinginfluencers]

Perhaps it's the partner model in accounting firms that needs looking at. There's a lot of money at the top. But then that's the same for most companies!

[@MfundoTheFellowActuary]

As a aspiring Charted Accountant CA(SA) in the few years when I qualify I am looking to move abroad, I am from South Africa.

[@MrsVanDorolek]

The description is spelled wrong “Padgett”

[@accountinginfluencers]

Thanks we'll check.

[@michaelsmith5463]

QUESTION: Biggest thing you didnt touch...PAY. Yes, there are baristas with 4yr degree. Why endure a Masters degree (time and $$)?---Whats the ROI? A Physician Assistant (Masters) will walk out of school and into $90-110k position everyday of the week, and find work in every state.

[@ikaZi84]

I'll have my AAS in Accounting in May and have quickly realized that it qualifies me to earn nothing more than $14/hour. I really wish I would've gone in a different direction, because accounting seems like a garbage career path, now.

[@Wealthier_We]

What paths are you thinking which are aligned to the Accounts but pay more handsome salaries and with less amount of Stress and is also in demand?

[@CarlGerhardt1]

It is.

[@madelineortiz6648]

That need to change is the salary. Increase the pay

[@accountinginfluencers]

Not sure that will happen but raising starting salaries at least to compete with law and other grads would help.

[@American6829]

The problem with accounting leadership in firms is that even though they are in leadership roles, they still have the "bean counter" mindset that all accountants have. They don't view their workers as actual people who have lives, families and dreams. They see them as a cost that needs to be minimized. University students know this and the only people pursuing careers in accounting now are gluttons for punishment

[@CarlGerhardt1]

Accounting supervisors are usually horrible at H/R.

[@Ruth-os4mi]

Accountancy = Low pay + Boring. STEM/IT = High pay + Exciting.

[@rustynails8756]

I think you have found a bit of the answer. If one is excited about a profession. Wages are negotiable no matter the field. If someone is excited about accounting they will be more likely to negotiate decent wages. I think expectations come into play also. Just because someone has a degree doesn't mean they have the skills required that are only learned by experience. So the recent graduate goes in expecting to be paid at the same level as someone who may or may not have a degree but does have several years experience. Employer's are expecting new hires to work for pay that is commensurate with their inexperience and as yet unproven abilities Certainly not for the long term but until the worker has demonstrated the expected skills. I have been on both sides of the hiring desk and it's a complicated dance no matter which side you are sitting on.

[@jonathonnielsen4078]

Thank you for this video, it provides some good insights.

[@accountinginfluencers]

Glad it was helpful!

[@megbo4194]

That's probably not true about job abundance, maybe in the uk.I have an advanced diploma and a masters in accounting and finance. Completed my F1 to F9 ACCA. Still with no job in the uk. Tried to get into any of the big for, but I don't quite know what they are looking for if I don't get selected. My cv barely goes through a single interview. Perhaps because I graduated with all these degrees and no work experience. I am willing and applied for less than an entry level, but no avail for 3 years to the point that I quited. Or maybe because I did my primary and secondary education abroad. The west is shameful when it comes to job search because it isn't what they told us about international education when they came to scaving for students in our country

[@mindcache5650]

The reputation of accountancy has been broken by the number of fines given to the Big 4 for shocking faults .

[@Greg_Chase]

Because college students, many who just scrape by perhaps with part-time jobs, have the most acutely-honed survival instincts - and knowing that for humans, the survival instinct is the strongest instinct we have - - compare Accounting to what Computer Science majors are confronted with: 1) "my survival instinct has me very much attentive to employment after college" 2) "and AI can write code" If accounting prioritizes *_"how are we undermining the PERCEPTION that the incoming generation has about the career?"_* it has a chance. But failure to prioritize that is GUARANTEED to result in low interest. If you're a computer science major just now, you are probably aware of two things: 1) AI 2) "I noticed during my internship that no one over the age of 40 was working in that company" and you've made a list of 100 other career options. "Student loans to pay, rent to pay for, parents want to see me launch a career," etc. ,

[@Angel-nl1cr]

Everyone in the profession is talking about the 150 credit hours and the pay disparity with other careers. But the reality is that’s just the peak of the iceberg. A bigger issue is the lack of training, teaching and mentoring of new graduates specially in the public accounting space. I see so many hungry, talented and enthusiastic graduates get completely discouraged out of the profession because no one was there to trained them or mentor them. I see so many public accounting firms doing massive layoffs abusing graduates during busy season and laying them off right after. The AICPA really wants change, start with placing accountability on the big public firms for these huge abusive layoffs and start demanding CPA holders to act as mentors and teachers to the new generation. All those 40 credit hours of non sense CPE credits to maintain a license that does not teach the holder be a teacher, to be patient, to lead by example, to mentor to keep the profession going. Let’s talk about that.

[@augustoliver2779]

Shitty pay, long hours, and intensive schooling are the issues and now we have AI coming in and taking jobs.

[@shanedavison7473]

If there really is a shortage of accountants it's because of the low pay for one. Another problem may be that the people with accounting degrees are unable to find entry level jobs. I got my BS in accounting and I never found a job in the field.

[@accountinginfluencers]

That's unusual given how firms are recruiting. Check out accountingfly.com

[@raysxdigital2795]

Its paid lower, on the contrary side there are lot of efforts to obtain qualifications, STEM is well paid .. that reality with better work life balance- Firms sucks blood of staff to get there EBITDA better

[@adeeladeel88]

High hours, low wage, too many non designated accountants that charge low fees that depress the market, lack of prestige/earning potential compared to doctors and lawyers

[@edward8717]

Smart accountants start their own firms. Work for yourself.

[@gumpgump3635]

How do you do that without any real world experience. No one is willing to take on new people to learn at least not for a livable wage.

[@malinoisnation9392]

@@gumpgump3635u hire the experience you need for your company

[@jonv8309]

partners would rather keep all their profits than pay their staff a decent salary

[@accountinginfluencers]

That's true in some cases but it's not smart for partners to neglect their staff like that.

[@American6829]

​@@accountinginfluencersmost accounting partners I've met aren't very smart. Greedy, yes. But not smart

[@deborahsmith6782]

Fees have to go up for clients and the stopwatch work model must be rewritten.

[@TheWizard856]

Knowledge work is getting offshored too much so no point to commit to CPA or a masters just to be axed later

[@guitarislife01]

This is a great conversation and all, but you can't say a damn thing to convince me to work for a public firm again. I make more money and only work 40 hours a week. Public firms make all kinds of promises during the hiring process but don't keep them once you start. You could promise me a handstanding leprechaun on top of a free Friday, and it's still a hard "No" for me.

[@The_Equalizer23]

Talent doesn’t wait… Money talks…

[@mindcache5650]

If it's those hours,that toxic culture with those awful Senior reports and behavior better of by 5* salary being a lawyer where you get the same treatment.

[@sharpasacueball]

Raise the pay and see the "shortage" disappear

[@michaelsmith5463]

I can spend $65k and 1.5years and become a regional airline pilot for $90k. Where's the upside...only 40hrs/wk?, work from home/remote?, no weekends?, all holidays off?, no OT to close every month/yr?? Kinda sounds like an expensive job to get into, suck conditions, suck pay, and like HVAC...start your own business to make real money

[@Sub0x-x40]

I dont know anyone who wants to be an accountant, its just what they study when there parents are forcing them to study something

[@Peters1980]

I have a bachelor in accountancy and part qualification of ACCA and planning to CMA (USA). I have 15 years experience as a senior accountant and finance Manager. From Doha Qatar, can we apply for USA Job Market. I would like to move for a challenging Job in USA

[@thomasexum9877]

This video is highly unprofessional and highlights a broader issue within the accounting industry. The profession often appears insular, with a tendency for similar demographics occupying senior positions across many organizations, particularly within WM and WW firms. Government and non-profit sectors are notable exceptions to this pattern. In many private accounting departments, there is a concerning trend of hiring individuals without formal accounting qualifications, often prioritizing personal connections over expertise. This has led to a shortage of qualified professionals, as evidenced by the numerous experienced, degreed accountants who face rejection. It is a common misconception within these organizations that accounting tasks can be performed by anyone with minimal training. This observation is based on extensive consulting experience with numerous organizations.

[@trevorh07]

None of these clowns will hire people who just have a bachelor's degree. Credentialism and elitist gatekeeping is going to completely hollow out the industry.

[@shiroc6171]

No shortage, just high expectations on us and end up getting rejected cuz we dont have enough experience for an entry level job😂

[@accountinginfluencers]

They should be rushing to hire people at all levels!

[@besverjin5130]

Students: Accounting, You can’t pay low wages (60k mcol hcol) AND be boring. Accounting firms: India. 😮😂 sad but true

[@denysolleik9896]

I’m gonna call you out. You speak of two different groups of people. You are obfuscating your thoughts and not telling anyone the truth. No one listens to accountants. How many accountants were asked to classify something they don’t agree with and complied for fear of losing their job? This industry is no better than trucking. Edit: challenge me, let’s audit some ledgers! Prove me wrong, that your accountants are so good I won’t find a mistake.

[@irliamthischool]

Agreed, management estimates are a grey area in accounting. I saw your accounting system repo and had a look. It's pretty cool. I work with SAP Business One but all ERPs work more or less the same in the back end. Where there is opportunity in ERP space would be to introduce low code ERP controls and a way to link all manual entries to source documents/items. This would improve quality of data used for reporting and analysis.

[@wackoffflores7647]

That not true. People only hire their own kind. I’m a minority and I get discriminated all the time.

[@accountinginfluencers]

Many accounting firms are msking efforts with diversity.

[@deborahsmith6782]

What does it mean for the accounting profession? Get out the checkbook. Other jobs pay better for less education.

[@accountinginfluencers]

You're right, and while this is changing slowly, less people are taking accounting degrees.

[@chuckinhouston9952]

I’ve been a CPA for 47 years and a CFO for 30 years - ten years in public accounting with one of the largest firms. I stopped watching this at the six-minute mark after I heard the term “value proposition” for about the 15th time. I’m sure there’s a good message year, but the first six minutes were not well presented - I can’t offer an opinion on what comes after that. Here’s my advice - script it, rehearse it, rehearse it again, and again, and have someone edit the video before posting it. To do this right involves a time commitment of more than two hours. I recently did a 23-minute video on AI for our firm - another partner and I spent about 40 hours, all in. Don’t try to shortcut it. This makes you look weak and incompetent, which I’m sure you are not.

[@magician_aleks2726]

What's your opinion on the subject on hand? Do you think businesses will eventually cave into the accountants/CPAs?

[@hezron1997]

It’s beyond me how a CFO with so much experience would come an accounting podcast with such a topic being discussed and decide to be the world’s greatest production critic

[@frank8348]

Hes basically trying to compare a podcast to him doing his job for a company and how much time he wasted on creating a video no one watches at his work.

[@accountinginfluencers]

That's a strong opinion and thank you for your feedback. That the brand of Accounting as a career choice is weak is clear when you look at the evidence. Of course, it is a great career but many of the people in accounting, perhaps like yourself, don't sell it well or tell enough good stories about it. That's what the rest of the podcast argues that you didn't see.

[@malinoisnation9392]

Sure pal

[@acounttemporary5017]

You should hire Filipino CPAs remotely in the Philippines. This is what most CPA Firms in the US do. You'll get more Value, Increase the number of your Clients exponentially in exchange for low pay or cost of less than $1k per Filipino St@ff. US Accountants??. N@h...

[@accountinginfluencers]

I'm not an accounting firm but yes, that's a solution many firms have used.

[@ophie7565]

It’s a recipe for disaster. One of the largest issues with accounting is the rush to offshore everything. It’s a quality issue, I really wish you had explored that more honestly in your video.

[@ophie7565]

It’s not the barriers to entry, it’s the stagnant pay which will only get worse with companies recklessly offshoring everything and trying to automate things without thinking it through. Just be honest.

[@madelineortiz6648]

You can outsource some accounting that requires local laws

[@albertcruz3232]

Outsourcing isn't always the answer.

[@edward8717]

Now is the time to get out of the profession. Run while you can. This is not going to change and will only get worse.

[@our.secret1130]

Why do you say that?

[@madelineortiz6648]

Now is the time to stay

[@our.secret1130]

@@madelineortiz6648 why?

[@shaolinprince777]

@@madelineortiz6648 exactly.

[@marpleloo65]

@@madelineortiz6648 scarcity will dictate the terms of the deal.