Namely, we’re running out of them.
- There are 340k fewer accountants now than there were in 2019, for a total of 1.6m in the US.
- Between 2016 and 2021, there was a 33% drop in first-time CPA exam candidates, and 2022 marked the lowest number of test takers since 2006.
- Existing accountants are aging out, with an estimated ~75% at retirement age.
The perception of the gig and those who do it as boring isn’t winning over younger students, per Business Insider. Also not helping: the extensive schooling and testing required, low entry-level wages, and long hours.
It’s pretty obvious…
… why this matters. A lack of accountants is already affecting businesses large and small.
In 2023, 720+ companies cited a lack of accounting staff as reasons for potential errors in their financials, up 30% from 2019.
Many startups and early-stage companies, which often use accountants instead of CFOs, are struggling to find financial advice, per Inc.
But what can be done?
Well, a pretty obvious thing would be to offer higher salaries in line with other finance jobs, which some companies are doing.
Experts also suggest offering a more engaging curriculum and reducing credit-hours requirements.
But it wouldn’t be 2024 without some talk of AI — not to replace human accountants entirely, but to save them time.
Meanwhile, an a16z report states the field is full of “formulaic and repetitive exercises” that would benefit from generative AI. Some accounting firms are looking to implement the tech in-house, while several startups are fundraising now.
In fact, JustPaid, which uses AI to automate invoicing and bill pay, was founded in 2023 by Silicon Valley entrepreneurs who had struggled to find accountants.
