The “great resignation” after the pandemic is a known affair and so is the immense talent shortage in the accounting industry. In the US, the accounting giants are losing peace over questions like:
Why is finding accountants so hard now?- Why is there a drop in interest in the accounting profession?
- How to hire new accountants for my CPA firm?
Well, the answer is not simple. The baby boomers have either retired or are on the path to exit, a new wave of accountants needs to replace them.
According to the Bureau of Labor Statistics projects, there is a need for about 1,36,400 new accountants and auditors over the next decade. This is contrary to the number of graduates with bachelor’s or master’s degrees needed annually in accounting – 80,000.
Wayne Berson, Chief Executive of BDO USA, mentions, “The next generation is wanting to move quickly, wanting to be excited by their job. A lot of them are looking at things like advisory services”. He further said that the new generation of accountants is inclined towards becoming consultants rather than choosing a 9-5 accounting job.
Hence one major concern that often plagues the minds of small CPA firm owners is, “How will I find the right resources?”.
Same question was also in the minds of Big 4, their solution has been Offshoring. While offshoring is the most preferred and recommended option, in case you are looking for other options then read on.
For Small CPA firms, the primary areas of accounting talent management focus include:
- Finding new talent: Actively seeking and recruiting qualified professionals to expand the firm’s workforce and capabilities.
- Retaining talent: Implementing strategies to retain and nurture existing talent within the firm.
Finding the Right Accounting Talent: What are the options?
Finding the right accounting talent has become increasingly difficult across the accounting industry. While retaining what you already have might seem to be the most accurate decision, the reality is tougher than it seems. Here is how small CPA firms can find the right accounting talent and keep rendering outsourced bookkeeping services:
- Contractual arrangements: Also known as freelancers, such employees can be engaged for specific tasks for specific durations. New-gen accountants want more flexibility and freedom and this mode of engagement provides just that. Freelancers, with specialized skills and project-based compensation, are perfect for small firms on the lookout for talented candidates. However, this might require more direct project management from the firm.
- Remote job platforms: After the pandemic, most of the employees are on remote platforms and accounting professionals are no exception. Platforms like Upwork and Fiverr provide a wide pool of freelancers that allow CPA firms to post job listings and browse relevant profiles. While picking candidates from these platforms, it is important to check for the authenticity of these candidates. Listings related to payroll outsourcing services were pretty common during the first wave of Great Resignation
- Partner with an offshore team: Offshoring has become a popular business model, especially for small accounting firms. The providers usually have years of experience and provide flexible models. Offshoring bookkeeping gives CPA firms the independence to take up more critical tasks, freeing their team from repetitive and manual ones. They are also adept in a variety of software and use technology as per demand. The offshore team not only helps reduce infrastructure and hiring costs but also acts as an advisor to the team. With an offshore team, the CPA firms are also relieved of the additional stress of rehiring during the peak season and retaining during peak seasons. Experienced offshore teams like Finsmart Accounting also allow CPA firms to make payments as per their convenience and comfort.
Hiring right accounting talent through offshoring:
Small CPA firms are not immune to the hiring challenges. In fact, they are worse hit due to the lack of resources, and capital. The increasing attrition rate leads to loss of talent, decreased productivity, and loss of reputation.
While hiring and rehiring is a constant cycle, what small CPA firms do is a long-term solution like offshoring.
For small CPA firms, it is key to find an offshoring bookkeeping partner that caters to the evolving needs of the clients. Here’s why:
- Access to expertise: Accounting is a niche field that includes tasks like tax preparation, audit, bookkeeping, payroll, accounts payable and receivable, and financial reporting. The expertise that the offshore teams bring helps small CPA firms handle the client’s pressure and remain competent. This allows them to maintain high quality of services and stay compliant.
- Better workflow: To ensure this, the small CPA firms must align their goals with the offshore team. Most often, an offshore team is aware of what needs to be done and hence, there is less need for extensive training. The offshore team can be easily integrated with the current processes and productivity is enhanced almost immediately.
- Easy adaptability: CPA firms, especially the smaller ones, are dynamic in nature. They need partners who can contribute and adapt according to the changing market conditions, regulatory needs, and client requirements. Offshore teams like Finsmart Accounting can acquire new skills, tools, and knowledge and help small CPA firms stay ahead of the curve.
- Scalability: Scaling up your business becomes increasingly easy with offshore teams. There is no need to find the right accounting talent or worry about retaining them. In fact, during the peak seasons, the offshore team can easily take up the ad-hoc work, which allows a broader client base and better profit.
Retaining talent
While there are always better ways to find and hire a new accounting workforce, retaining your current workforce should be your top priority. Here’s how you can do this:
- Competitive Compensation: No matter what anyone says, compensation plays a huge role in retaining talent. Make sure to stay updated with the market standards.
- Career growth opportunities: The new generation of accountants want growth and they want it fast. Providing them with the right opportunity and laying the career graph for them can go a long way to help them make an informed decision.
- Flexible work arrangements: After the pandemic, most employees look for employers who can help them gain overall flexibility. Allowing remote work or a hybrid model can help retain qualified talent.
- Health and wellness programs: Employees spend about half of their days at their workplace. They want to be a part of a culture where they feel important and valued. Implementing health and well-being programs helps promote a work-life balance and keeps employees motivated.
Find and Hire Accountants
There is a severe dearth of talent who are inclined to a full-time opportunity in accounting. For small CPA firms, it is important to try out different methods and adopt the one that best suits their model. No matter how much they try to retain the employees, rehiring and retraining is a consistent issue. Offshoring is one of the best alternatives that help small CPA firms reap maximum benefits, without added cost.
Have more questions about offshoring? Reach out to our team at connect@finsmartaccounting.com.
We recommend checking out these recent blogs and service pages as well:
Benefits of offshoring accounting and financing
Artificial intelligence in accounting
Tax software for small CPA firms
Risk management in accounting firms
Accounts payable and receivable services
Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.
