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Monday, September 24. 2007
CPAs Get Smart in Staff Crisis
“Too much to do, not enough time.”
How does your office rate? Join the survey; see the answers.
by Rick Telberg
Accounting firms and finance departments have but a few stark choices when it comes to managing the epidemic staffing crisis: Do more with less, or just do less.
In fact, too many offices are simply doing less. But there is an alternative to simply throwing in the towel. Almost as many firms are learning how to cope—even thrive—through the crisis.
More than half of the CPAs who are responding to our current survey say their firms are so understaffed that it’s impeding business. While the reasons why firms are facing a shortage may vary, many respondents cite difficulty in finding quality associates.
How does your office rate? Join the survey; see the answers.
by Rick Telberg
Accounting firms and finance departments have but a few stark choices when it comes to managing the epidemic staffing crisis: Do more with less, or just do less.
In fact, too many offices are simply doing less. But there is an alternative to simply throwing in the towel. Almost as many firms are learning how to cope—even thrive—through the crisis.
More than half of the CPAs who are responding to our current survey say their firms are so understaffed that it’s impeding business. While the reasons why firms are facing a shortage may vary, many respondents cite difficulty in finding quality associates.
“We are desperately seeking accountants [and] have been for over a year,” said Alka Chudasama of a public accounting firm based in Redlands, Calif.
Echoing that sentiment, Terri Hornberger of Dallas, Texas, said, “[It’s] hard to find staff.”
Unfortunately, it appears to be an industry concern that shows little sign of slowing. According to the AICPA, 75 percent of the current membership will approach retirement age in the next 15 years. The AICPA has also noted that the shortage of CPAs continues. Firms may have hired 17 percent more entry-level recruits in 2006 than they did in 2005, but the need for CPAs remains. According to the AICPA, in 2004, one in six CPAs left his or her firm—that is 2 percent more than in 2003.
According to the latest Bay Street Group Trendlines data, some 20 percent of CPAs work in offices with at least 20 percent annual turnover.
Fueling the fire is an increase in the number of businesses, shifting financial regulations, an amplified scrutiny of company finances and the changing role of accountants. Today, they are offering more services than ever. They must do so in order to effectively compete in today’s challenging marketplace. The metamorphosis has sparked major growing pains for many firms in the industry.
“A new area of business will require more staff,” said Debbie Stevens of Lenexa, Kan.
“We need more staff at the mid-experience level,” said Camala Bailey at a local accounting firm in Tempe, Ariz.
Some respondents said that their firms have already seen a wave of retirements and have yet to fill the positions. Meanwhile, other professionals said they are overstaffed when looking at the numbers but are understaffed when it comes to “talent and attitude.”
“We are not trying to grow the business because of our concerns with hiring and retaining qualified staff,” said Michael Warner of the eponymous Warner & Co. in Woodstown, N.J.
Added Ann Menke in West Point, Iowa, “We can’t grow because we don’t have reliable staff.”
According to Nancy Hwang at a firm in Rancho Cucamonga, Calif., budget constraints have hampered hiring efforts. They are “understaffed, over budget” and burdened by “unrealistic upper management expectations as to what it takes to run an accounting office,” said Hwang.
For those firms that believe hiring additional staff is not an option, many industry sources agree that enhancing efficiency within the workflow process could be the next best thing. Luckily for firms, software vendors are well aware of the staff shortage facing the industry, and many are bolstering their product offerings to better streamline workflow and automate data entry.
Looking ahead, such staffing issues will continue to force companies not only to find ways to attract and retain talent—whether it be through compensation or a more flexible work environment—but also to enhance workflow efficiency.
There’s “always too much to do and not enough time,” said Nancy Callahan of Carmel, Calif.
YOUR TURN: How does your office rate? Join the survey; see the answers.
COMMENTS: Questions, rants or raves? Write Rick Telberg.
Copyright © 2007 Bay Street Group LLC. All Rights Reserved. First published by the AICPA.
Echoing that sentiment, Terri Hornberger of Dallas, Texas, said, “[It’s] hard to find staff.”
Unfortunately, it appears to be an industry concern that shows little sign of slowing. According to the AICPA, 75 percent of the current membership will approach retirement age in the next 15 years. The AICPA has also noted that the shortage of CPAs continues. Firms may have hired 17 percent more entry-level recruits in 2006 than they did in 2005, but the need for CPAs remains. According to the AICPA, in 2004, one in six CPAs left his or her firm—that is 2 percent more than in 2003.
According to the latest Bay Street Group Trendlines data, some 20 percent of CPAs work in offices with at least 20 percent annual turnover.
Fueling the fire is an increase in the number of businesses, shifting financial regulations, an amplified scrutiny of company finances and the changing role of accountants. Today, they are offering more services than ever. They must do so in order to effectively compete in today’s challenging marketplace. The metamorphosis has sparked major growing pains for many firms in the industry.
“A new area of business will require more staff,” said Debbie Stevens of Lenexa, Kan.
“We need more staff at the mid-experience level,” said Camala Bailey at a local accounting firm in Tempe, Ariz.
Some respondents said that their firms have already seen a wave of retirements and have yet to fill the positions. Meanwhile, other professionals said they are overstaffed when looking at the numbers but are understaffed when it comes to “talent and attitude.”
“We are not trying to grow the business because of our concerns with hiring and retaining qualified staff,” said Michael Warner of the eponymous Warner & Co. in Woodstown, N.J.
Added Ann Menke in West Point, Iowa, “We can’t grow because we don’t have reliable staff.”
According to Nancy Hwang at a firm in Rancho Cucamonga, Calif., budget constraints have hampered hiring efforts. They are “understaffed, over budget” and burdened by “unrealistic upper management expectations as to what it takes to run an accounting office,” said Hwang.
For those firms that believe hiring additional staff is not an option, many industry sources agree that enhancing efficiency within the workflow process could be the next best thing. Luckily for firms, software vendors are well aware of the staff shortage facing the industry, and many are bolstering their product offerings to better streamline workflow and automate data entry.
Looking ahead, such staffing issues will continue to force companies not only to find ways to attract and retain talent—whether it be through compensation or a more flexible work environment—but also to enhance workflow efficiency.
There’s “always too much to do and not enough time,” said Nancy Callahan of Carmel, Calif.
YOUR TURN: How does your office rate? Join the survey; see the answers.
COMMENTS: Questions, rants or raves? Write Rick Telberg.
Copyright © 2007 Bay Street Group LLC. All Rights Reserved. First published by the AICPA.
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I didn't realize everyone felt the same way I did! It's just nice to know I'm not the only one with these problems.
Sincerely,
Glenda Buckhout
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Sincerely,
Glenda Buckhout
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Gee these were the very same questions our MAP group has asked every year since the early 1970’s. I think the only problem is that with the 150 hour requirement it is going to get worse and worse. We started having monthly MAP meetings in 1975, I think. And other than discussing computer problems most of the problems (issues) are the same now as then. Frankly I prefer the term problems instead of issues as problems can be solved. (jmho)
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Would you be kind enough to point me in the right direction on 1) where geographically the accounting staffing crisis is and 2) in what areas are skill sets being sought. I have an MBA from a Big Ten school, a CPA license, was a first time CPA exam passer, and worked for the Big Four, have 5 years experience, and have been out of work, though actively seeking, for 6 months in the Mid-West due to public accounting burnout (50% travel, 75 hr weeks). I've employed a few recruiters, but we do not see this type of job market at all here. In fact on one interview, where I finished #2, the VP said over 20 CPAs had applied. Many friends (CPAs) would like to make a change from public to private, but can't find any jobs.
As always, I read your latest article entitled "CPAs Get Smart in Staff Crisis" with interest. The 150 hour educational requirement for CPA candidates remains the leading cause of the current staffing problem in my opinion, and I hope someone will address this issue head on in the near future.
John W. Roberts, M.B.A., CPA
Maui, Hawaii
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John W. Roberts, M.B.A., CPA
Maui, Hawaii
.
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