Kansas City Faces Accounting Talent Crisis Amid Job Opportunities

News Summary

Kansas City is experiencing a critical shortage of qualified accountants despite an increasing demand for these professionals. Over 300,000 accountants have left their jobs in the past two years, leading to a 17% decline in the workforce even as job openings have surged. The profession’s perceived dullness among younger workers is discouraging new entrants, while firms struggle to retain talent in the face of rising retirements and a taxing workload. The accounting industry must adapt and innovate to attract new talent and improve working conditions.

Kansas City Faces Accounting Talent Crisis Amid Job Opportunities

In the heart of Kansas City, a concerning trend is unfolding in the accounting industry: there is a striking shortage of qualified accountants, even as the demand for these skilled professionals grows. This situation is not isolated to Kansas City; it is a nationwide issue that has left many firms scrambling to fill vital roles.

The Numbers Speak

According to the latest data, more than 300,000 accountants and auditors have left their positions in the last two years, resulting in a 17% decline in the workforce. This loss comes despite a surge in accounting job openings, which saw a 4% increase from 2022 to 2023, with an attractive average annual salary hovering around $79,880. Yet, it seems these numbers aren’t enough to attract new talent to the field.

A Shift in Perception

Many young workers view the accounting profession as boring and outdated. As a result, the number of students opting to major in accounting is dwindling. In the 2021-22 academic year, only 47,067 bachelor’s degrees were awarded in accounting, reflecting a concerning 7.8% drop from the previous year. The message is clear: the image of accounting as a dull profession needs a serious makeover to entice the younger generation.

Outsourcing and Training Solutions

As the staffing crunch deepens, many accounting firms are exploring outsourcing work and actively training individuals from other fields, such as business, to fill the vacant accountant roles. This shift underscores the tough conditions public accounting firms, especially smaller ones, are facing. Larger firms often have the financial muscle to recruit full-time talent, leaving the smaller players scrambling to stay afloat.

Retention Woes

A recent survey has spotlighted the stubborn challenges hiring managers encounter. An alarming 82.4% of public company hiring managers reported difficulties in retaining talent over the past year, while 82.3% anticipate ongoing recruiting hurdles. The private sector isn’t faring much better, with 68.9% of our hiring managers struggling to hold onto finance and accounting professionals.

Aging Workforce and Retirement Waves

To add to the mix, nearly 75% of the CPA workforce had reached retirement age by 2020, and the impending retirements are amplifying the already challenging staffing model in modern accounting. As seasoned professionals step away from their roles, the disruption to firms and the industry as a whole cannot be understated.

Tax Season Stress Amplifies the Situation

The busy tax season further complicates matters, often leading to burnout among accountants, who face long hours and immense pressure. Approximately 55% of accountants reported feeling stressed during this peak time, compared to just 41% in other sectors. A staggering 79% agree that stress and mental health concerns are critical issues within the profession, contributing to the overall workforce crisis.

Rethinking the Future

To draw in the next generation of accountants, there is a growing consensus within the industry that innovative practices and fresh expectations are crucial. The public is encouraged to approach tax professionals with patience and understanding, acknowledging the complexities they deal with in managing financial information.

A Call for Change

As firms and educators alike look for solutions, it is clear that meaningful changes must emerge from all levels of the accounting industry. By revitalizing the profession’s image and enhancing working conditions, perhaps accounting can again become a desirable career for the younger generation in Kansas City and beyond.

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Additional Resources

• Kansas City Magazine: It’s Tax Time and for Accountants That Means It’s Crunch Time
• Going Concern: Friday Footnotes – EY Shrinks Its Audit Practice
• CFO: 42% of U.S. Employees Don’t Want a Promotion
• KSHB: Kansas City Police Increase Starting Pay by 30%
• Forbes: Top CPAs List
• Wikipedia: Accounting
• Investopedia: Accounting
• Google Search: Accounting Shortage
• Encyclopedia Britannica: Accounting
• Google News: Accounting Profession