The debate on gender equality has been long ongoing, irrespective of the field. Accounting has always been perceived as a traditional field, where men dominate, simply because “women can’t understand numbers”. At least that was the outlook a decade ago. Times have changed; today women are reaching roles that previously were hard to imagine. Like every other industry, the number of women in accounting has also significantly increased. And the numbers are proof.
The gender diversity in leadership positions seems encouraging. According to AICPA, today, women hold 39% of partnership positions at US CPA firms and 46% of employees in CPA firms. The Volatility Report 2022 also highlights an increase in women in corporate leadership positions. The comparison of 681 companies from the Fortune 500 and S&P 500 found that in 2022, 11% of CEOs and 25% of CFOs were women.
While the numbers are encouraging, the problem is deep-rooted. Think about it! The numbers indicate that at the entry level, the number of women is proportionate to the number of men entering the profession. So what happens in between? Why is the number of accounting leaders so slim for women?
In this article, Finsmart Accounting – trusted globally for offshore accounting services – will share everything about women in the accounting profession. Let’s start by discovering the key challenges for women in the accounting business.
Key Challenges for Women
There is no denying the fact that every woman’s experience with her workplace is so very different. While some employers are huge advocates of bridging the gender diversity gap, others still can’t let go of the subtle sexism. This is worse for fields that are traditionally male-dominated like accounting. Some of the key challenges that women continue to face even in 2024 include:
– The Tall-Poppy Syndrome:
This concept originated in Australia and New Zealand, which means people would be criticized and resented for their success and achievements. Women’s ambitions and aspirations have mostly been looked down upon, even in corporates. Many women experience the tall poppy syndrome, which belittles their confidence, often planting the seeds of self-doubt. Many women, even in senior positions are uncomfortable talking about their aspirations at work. Despite being at the same level and having worked the same number of years, women feel they have to work harder to prove their worth. Yet, find it uncomfortable to celebrate their success.
– Lack of work-life balance:
For most women, the need to perform perfectly at work and in their personal lives is almost nagging. A report found that 90% of women compromise their work-life balance and 85% struggle to set boundaries at work. Women, after a certain point in their personal life, constantly worry about someone else replacing them at work, no matter how good they are. As a result of the fear, they jeopardize their personal life. The accounting profession, especially during the peak season, demands long hours, and tight deadlines. Women, especially, working mothers need to compete constantly to meet the demands of work and family, leading to stress, burnout, guilt, and the feeling of inadequacy.
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– Gender bias and stereotypes:
“Women know nothing about accounting and finance” is a common stereotype. As a male-dominated field, accounting constantly questions women’s abilities, competence, leadership abilities, and commitment. The biases and stereotypes might not be as loud and vocal as they used to be. Today, they are manifested in subtle ways – ways that compel women to question themselves on their capabilities. Some common examples include being overlooked for promotions or challenging clients, despite having the skills and experience. In some cases, women also face criticism that is a blow to their confidence from colleagues and clients who have traditional views on gender roles.
– Lack of mentorship and networking opportunities:
Mentorship and networking opportunities are extremely critical for career growth in accounting. Yet women in accounting constantly struggle to find mentors and establish meaningful professional relationships. This shortage of networking capabilities also limits their access and knowledge to essential resources and leads to a lack of visibility and recognition. Many employers and organizations have an unconscious bias towards providing women with the opportunities that ensure their growth and development.
How can firms do better in providing women with the opportunities they deserve?
– Building a Culture of Inclusivity:
Most employees stay with an accounting firm for the experience – which loosely translates to the culture you have built. The success of a firm’s business is directly proportional to the happiness of the employees. Many surveys have shown women are more focused and better at their jobs, so why the bias? To hire, and retain great women, you need a culture that encourages inclusion and ensures that the best talent grows. One of the biggest mistakes a firm can make is assuming that the culture is what the management says. If you really want to understand if people are leaving or staying because of the culture you have, you need data. Internal surveys, research, feedback, and anonymous questionnaires can give you answers to everything you have been overlooking.
– Reconsider the family aspect:
Even in 2024, women are expected to be the primary caregivers in the family. Women try hard to keep up with the personal and professional aspects, but it is important to understand and acknowledge the additional life changes that women go through and men don’t. While women are at par with men today, their circumstances and situations prevent them from achieving their optimum potential. That is why, employers need to consider the additional factors that can make women’s lives easier. Flexible work arrangements, for example, allow women to take care of their sick children while completing the tax file, instead of taking a leave. Implement policies, and outline eligibility criteria, expectations, and communication protocols to make the most of the models. Managers and supervisors should also be trained to manage their remote teams effectively, ensure efficiency and productivity, and make adjustments as and when needed.
– Transparency in pay:
The gender pay gap is real, but in accounting fields, it’s worse. Organizations should implement transparent salary policies and practices by openly communicating the criteria and logic behind compensation decisions across all levels. Employees should be encouraged to have an open discussion with their managers if a doubt pops up. Regular salary equity audits can help identify the disparities in gender-based pay, ensuring the practices are aligned with the principles of equity. Leaders and managers should be trained to conduct fair salary negotiations and get rid of any unconscious bias. Mechanisms to allow employees to report concerns or grievances can ensure timely and transparent resolution of issues raised.
– Leadership development programs:
The numbers across all surveys showcase a declining number of women in leadership positions. Employers and organizations should design leadership development programs tailored to meet women’s aspirations, focusing on essential skills and overcoming barriers. Provide women the opportunity to engage and participate in mentoring, coaching, and networking that enables growth and learning. To employees with caliber, offer sponsorship initiatives towards building a new skill, enhancing an old one, and providing access to high-profile assignments. Constantly inculcate a sense of diversity, equity, and inclusion into the leadership development programs to ensure no one is subject to unfairness.
Women in Accounting – Conclusion
Women come with as much potential as men do, sometimes more. Over the past decade, the accounting industry has undergone several changes in the positive direction and the numbers are proof. However, when it comes to addressing the disparities, our bias holds us back. As we continue to adapt to so much newness in the profession, it’s time to advance in this direction too. By championing diversity, equity, and inclusion, we can create a future where women thrive and excel at every level.
At Finsmart Accounting, we take diversity and inclusion way too seriously. A huge proportion of our workforce is women and we constantly propagate D&I into our daily lives. Want to partner for your accounting needs with us? Write to us at connect@finsmartaccounting.com.
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Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
