U.S faces shortage of accountants on retirements, low interest in profession

The United States (U.S) is experiencing a shortage of 340,000 accountants, mainly due to the wave of retirements and a reduction in the number of people pursuing accounting degrees.

Findings from Multiplier, a global recruitment platform, reveals how US-based companies are utilising its Employer of Record (EOR) software to recruit accountants from international markets.

The platform also indicated a fourfold increase in the demand for accountants from US-based companies between Q1 2022 and Q1 2024, as over 75 percent of certified public accountants (CPAs) got to retirement age in 2019 and many are not entering the field.

Demand for more accountants

A report by the Institute of Management Accountants (IMA) and Robert Half, which surveyed over 1,200 current and former accountants highlighted this trend in the shortage of accountants.

Their findings suggests that the baby-boomer demographic are not the only ones leaving due to retirements, but the younger ones aged 25 to 34 years, as well as mid-career professionals aged 45 to 54 years. They cited their reasons as inadequate wages and limited career advancement opportunities.

Accountants top FlexJobs’ list of top remote jobs for 2024 in the United States, and this is driven by increasing demand across industries including finance, healthcare and government sector.

Although Bloomberg reports that the Big Four accounting firms KPMG, PwC, EY and Deloitte are cutting thousands of jobs in 2023, such layoffs are rare, according to Julia Pollack, chief economist at ZipRecruiter.

“As an accountant, you are a highly valued employee, so the risk of getting laid off is pretty low,” she said. “You’re a trusted member of the inner circle, you see all of the dirt and get the company out of trouble — it’s a very important, stable job.“

Other reasons are long work hours. This could take up to 70 to 80 hours per week during peak tax and audit season. Others are transiting to finance and technology.

In order to address the shortage of talent, many companies have increased the salaries for entry-level finance and accounting positions, including referral bonues, as well as employing more employees on a temporary basis, as reported by Robert Half.

The shortage of accounting talent is an opportunity for them to secure stable jobs that offer hybrid or remote work options.

Although, the average salary for accountants in the U.S. is around $68,000, the experienced ones can earn between $150,000 and $200,000 annually.

Industry observers have also noted that even the entry-level accountants are now commanding higher salaries, with some firms offering at least $85,000.