Accounting’s pipeline problem: An opportunity in disguise?

The bigger the crisis, the more important it is not to let it go to waste — and since the accounting profession has rarely faced a crisis as big as the ongoing staffing crunch, it should come as no surprise that some leading firms are seeing a silver lining to it.

“The biggest opportunity for accounting firms is to stand out and attract young accountants — particularly in a world where there’s fewer college graduates pursuing this career,” explained Colin Kendall, chief marketing officer at Top 100 Firm SC&H Group, in Sparks, Maryland. “The firms that can find ways to be a magnet for this group will have a significant advantage and a leg up in the accounting world.”

“In an industry facing an escalating talent shortage, accounting firms have a unique opportunity to emerge as premier destinations for top CPAs,” agreed Eric Abati, CEO of San Antonio-based Regional Leader ATKG Advisors. “The winners in the battle for talent will be firms that not only attract but also retain an engaged talent base. These successful firms will achieve this by creating a culture that fosters mutual support, offers meaningful career opportunities, promotes team cohesion, and ensures both personal and professional fulfillment. Such firms are poised to establish a distinct competitive advantage for years to come. Simply put: Culture wins.”

(See the other major opportunities firm leaders are pursuing in 2024.)

While Abati is focused on culture, other firm leaders emphasized different areas as places where firms can stand out in the war for talent. SC&H’s Kendall, for instance, highlighted the need to improve work-life balance, training and development, and hybrid and remote work options, while Richard Kopelman, CEO and managing partner of Atlanta-based Top 100 Firm Aprio, suggested investing in the rapid development of talent.

“By fostering an environment of high upward mobility and actively seeking professionals with diverse backgrounds, firms can unlock immense potential for growth and innovation,” Kopelman said. “This approach benefits our firm internally by nurturing a dynamic and skilled workforce. Also, it aids clients by ensuring they have access to a broad spectrum of specialized knowledge and insights.”

“The accounting profession presents a significant opportunity to engage and attract the younger generation by offering diverse career pathways and opportunities for advancement,” he continued, but noted that there are certainly hurdles along the way: “Addressing challenges such as integration and synergy after mergers, talent development and retention focusing on diversity, equity, inclusion and belonging, and market differentiation and client retention are essential for firms to capitalize on this opportunity entirely. By effectively managing these aspects, accounting firms can position themselves as industry leaders capable of delivering exceptional value to clients while nurturing a culture of growth, inclusivity and excellence within the organization.”

Despite the opportunity, becoming a firm of choice for top talent certainly won’t be easy, and Kopelman wasn’t the only one to recognize that it will require solving problems many firms simply haven’t been able to fix.

“A huge opportunity and challenge for the accounting industry is cracking the code on employee satisfaction, primarily work-life balance during busy season, while maintaining excellent outcomes and a welcoming culture,” said Lindsay Suelmann, marketing director at Top 100 Firm Anders CPAs in St. Louis. “With capacity challenges across the industry, investing in the employee experience will be critical in recruiting and retaining top talent. This will require thoughtful, unique approaches to workload management and project coordination as well as professional development opportunities and the clear communication of meaning and purpose at the firm.”

In a profession that routinely pays entry-level accountants less than their counterparts in sectors like technology and finance, there is another way for smart firms to set themselves apart.

“There needs to be a strategic realignment of their compensation and pricing models to address the industry’s staffing shortages,” said Jeffrey Weiner, chairman and CEO of New York City-based Top 100 Firm Marcum. “By offering a compensation package commensurate with accountants’ critical role, firms can incentivize more individuals to pursue careers in accounting.”

Weiner noted, though, that this might require firms to recalibrate their pricing upwards: “Elevating our fee structure will allow us to invest more in talent development, technology and other resources, further enhancing the attractiveness and sustainability of the profession,” he said.

(See the major challenges firms leaders are worried about in 2024.)

Finally, while the current staffing crisis offers individual firms an opportunity to stand out from the rest of the crowd, it also offers the profession as a whole a chance to change how it is seen in the marketplace.

“The most significant opportunity for accounting firms, as I see it, lies in the rebranding and marketing of our industry, mainly to attract top talent,” said Wayne Pinnell, managing partner of Irvine, California-based Regional Leader Haskell & White. “With the business world evolving at lightning speed, it’s crucial to shift perceptions and showcase the exciting opportunities that await the next generation of accountants and those currently working in public accounting. It’s time to highlight accountants’ innovative and strategic roles in driving business success. By showcasing the evolving nature of accounting and its potential for growth and excitement, we can entice ambitious individuals to choose a career path in this field.”