Latest / The Accounting Podcast / Headlines: Job Security Isn’t Enough to Keep Many Accountants From Quitting

Transcript

Headlines: Job Security Isn’t Enough to Keep Many Accountants From Quitting · The Accounting Podcast

• 0:00
  This is The Accounting Podcast.
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  I'm Blake Oliver.
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  According to a recent article in The Wall Street Journal titled "Job Security Isn't
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  Enough To Keep Many Accountants From Quitting" by Mark Maurer, accountants
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  are leaving the profession in droves.
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  The article cites some troubling statistics.
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  There were about 1.65 million accountants and auditors in the US in 2022.
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  That's down 15.9% from 2019.
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  More than 300,000 accountants quit their jobs between 2019 and 2021.
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  What's more, the average tenure and age of accountants is increasing,
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  meaning it's often the more experienced people who are exiting.
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  About 82% of accountants who left this year through September 1st had
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  at least six years of experience.
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  There are several reasons cited for this exodus.
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  Firstly, many accountants feel underpaid and find the work
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  mundane leading to burnout.
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  On top of that, some are concerned about the threat of new technologies, like
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  artificial intelligence, replacing them.
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  To illustrate this dissatisfaction the article tells the story of
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  two accountants who left or are considering leaving the field.
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  Omer Khokhar worked for six years as an accountant.
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  He then left to join JPMorgan Chase's commercial real estate division.
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  He found accounting monotonous with little room for creativity or growth.
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  Zach Madel a 28 year old CPA and firm owner in Florida plans to evaluate
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  switching careers after this tax season to pursue counseling people,
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  struggling with mental health issues.
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  Though he appreciates the flexibility of running his own business.
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  He finds the accounting work tedious and wants to make more of a
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  meaningful impact through his work.
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  More anecdotes highlight how overwork drives some accountants away.
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  A 33 year old tax accountant in Kansas City with over six years of
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  experience feels overworked year-round and is evaluating new career options.
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  A 32 year old senior accountant in Pennsylvania is considering going
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  back to school for nursing, believing it may provide more meaningful
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  work and better work-life balance.
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  Some accountants like Nicole Davis, a CPA in Georgia, find fulfillment
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  in helping small businesses, especially during the pandemic.
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  For her, the role provides a sense of gratitude and meaning she has
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  no plans to leave the profession.
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  The shortage of accountants is expected to worsen as more baby boomers retire
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  without enough young people entering the profession to replace them.
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  According to Purdue University professor Troy Janes, who's quoted in the story,
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  accounting firms must raise salaries, offer training and new capabilities
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  and provide more career flexibility.
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  Janes notes that more firms in recent years are willing to allow managers
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  to remain at that level rather than dismiss them, a move to retain
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  personnel who might otherwise leave.
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  Finally , AI poses a paradox while some hope it will reduce tedious tasks.
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  Ben Wann, an accounting education company, owner notes that others see the
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  technology as a threat that will widen the gap between accountants skills and
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  what's needed in the modern workplace.
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  You can find a link to the article in the show notes.
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  It's an excellent read.
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  My main takeaway is that the stability of an accounting career isn't as appealing
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  as it used to be and doesn't outweigh the long hours and often monotonous work.
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  It's my hope that the profession will embrace new technologies,
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  such as generative AI to reduce hours, increase pay, and help
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  accountants do more exciting work.
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  This has been a news update from The Accounting Podcast.
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  I'm Blake Oliver.
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  Thanks for listening.