By Ringside Talent Partners
July 17, 2024
With only a few days to go before the April 15 filing deadline, tax season is almost over — but for many accountants in the U.S., work is hardly slowing down.
Between a wave of retirees and a drop in the number of people pursuing accounting degrees, the entire industry is struggling to staff up, putting additional strain on the professionals who remain.
In the past two years, more than 300,000 U.S. accountants and auditors have left their jobs, a 17% decline, the Wall Street Journal reports.
The mass departure is driven by more than just baby-boomer retirements. As the Journal reports, younger accountants between the ages of 25 and 34 and mid-career professionals in the 45-to-54 age range are also leaving the profession in high numbers.
Many accountants resign due to inadequate pay and limited opportunities for career advancement, according to a recent report from The Institute of Management Accountants (IMA) and Robert Half, which surveyed over 1,200 current and former accounting and finance professionals.
Accounting’s long hours — 70-and 80-hour weeks are common at some of the biggest firms ahead of tax and audit deadlines — are another deterrent, says Brandi Britton, a finance and accounting expert at Robert Half.
Britton says accountants leaving the field are often moving into jobs in finance and technology.
To alleviate the talent shortage, more companies are increasing entry-level salaries for finance and accounting roles, offering referral bonuses and hiring temporary workers, the IMA and Robert Half report found.
In a tough job market, the accounting crisis presents a unique opportunity for mathematically inclined professionals to secure stable, six-figure jobs — many of which are hybrid or remote.
While the average mean salary for accountants in the U.S. is about $68,000, according to ZipRecruiter data, more experienced accountants stand to earn anywhere from $150,000 to upwards of $200,000 a year.
Increased demand for accountants means that even entry-level candidates can command higher salaries, says Britton, who notes that at some firms, even those new to accounting can expect to earn at least $85,000.
Here are some of the top in-demand accounting roles companies are hiring for right now, according to data from Robert Half:
1. Corporate controller
Salary range: $111,000 – $210,750
2. Director of finance
Salary range: $121,750 – $178,500
3. Tax manager
Salary range: $133,000 – $207,500
4. Accounting manager
Salary range: $82,250 – $117,750
5. Senior accountant
Salary range: $71,500 – $101,750
Most jobs require a bachelor’s degree in accounting or a related field, as well as a certification in a specific field of accounting, like becoming a licensed Certified Public Accountant, according to the BLS.
Many of these jobs offer remote or hybrid options, Robert Half found. Britton anticipates that the percentage of accounting jobs that are remote or hybrid will likely grow in the coming months as employers adjust their recruitment strategies to attract more talent.
Even with higher salaries and more options for flexibility, to retain accountants, employers still have to figure out ways to reduce overtime hours and workloads during busy seasons, Britton says, and outline clear paths for advancement.
“It’s not because managers don’t want to support their accountants’ career growth,” Britton explains. “More often than not, they’re just busy and they don’t even think about it. But you’ve got to make sure you’re fulfilling the needs of your employees just as much as you’re filling the needs of the role that you hired them for.”
What that could look like is setting up regular check-ins with accountants, introducing them to different teams within the organization and encouraging them to take on projects that interest them outside of their normal job responsibilities — all retention strategies IMA and Robert Half recommend in their report.
Accountants claimed the top spot in FlexJobs’ 2024 ranking of the top remote jobs in the U.S., thanks to increasing demand for these skilled professionals across several industries, including finance, health care and government.
Although Bloomberg reports that the Big Four accounting firms —KPMG, PWC, EY and Deloitte — collectively shed thousands of jobs in 2023, such layoffs are rare, ZipRecruiter chief economist Julia Pollak recently told CNBC Make It.
“As an accountant, you are a highly valued employee, so the risk of getting laid off is pretty low,” she said. “You’re a trusted member of the inner circle, you see all of the dirt and get the company out of trouble — it’s a very important, stable job.“
Courtesy of CNBC