Headlines: Job Security Isn’t Enough to Keep Many Accountants From Quitting

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