In recent weeks, multiple advisory industry executives have told ThinkAdvisor they are growing worried about an increasing lack of certified public accountant talent in the United States.
Their fear is based mainly on the fact that RIAs are themselves facing growing client demand for holistic retirement planning services that take complex tax considerations into account. Often, today's financial planners find themselves collaborating closely with CPAs to meet their clients' income planning and tax-efficient investing needs.
In the emerging talent environment, sources warn, RIAs will have to search harder for trusted CPA partners. In fact, it is likely many firms could find themselves outsourcing significant tax planning work to India or other countries, one accounting firm executive says.
From the perspective of Lisa Simpson, vice president of firm services at the Association of International Certified Professional Accountants, these concerns are not surprising to hear. Responding to a recent inquiry from ThinkAdvisor, Simpson acknowledged that accountants are indeed leaving their jobs in significant numbers, and replacing them all isn't an easy proposition.
However, while she acknowledges the concerns of the RIA community, Simpson is also quick to point out that similar issues are affecting almost all the skilled professions in the United States, and she says she is hopeful that ongoing efforts by the AICPA and other organizations can help address the emerging talent gap.
Ultimately, the CPA profession remains an attractive and important field, Simpson says, and she is hopeful that redoubled recruiting efforts and updates to the professional accreditation process can reverse some of the concerning trends.
A Demographic Reality
From the AICPA's perspective, there appears to be a variety of trends affecting the CPA profession, many of which are being seen across other professions and the U.S. workforce at large.
"Societal shifts that were developing before the COVID-19 pandemic have been accelerated over the last three years," Simpson says. "We are seeing shifting generational expectations about work, an overall decline in college enrollment, changes in immigration rules and a rapidly changing technology environment."
Simpson says the simple fact that the baby boomer generation is aging and rapidly leaving the workforce is a significant factor in the CPA talent shortage, and at the same time, some younger professionals are choosing to participate in the Great Resignation the U.S has seen in the workforce.
"Accounting is not the only profession impacted by these issues, as evidenced by job reports that indicate there are almost two unfilled jobs for every person considered unemployed," Simpson says.
The AICPA's POV
Simpson says the AICPA's goal is to help foster a dynamic accounting profession that works every day to build trust, create opportunity and grow prosperity worldwide.
"As we talk with leaders in the accounting profession, we encourage them to understand the changing perceptions of work, and the need to continue fostering cultures where their talent has a sense of belonging," Simpson says.
In this sense, the challenges facing the CPA industry closely resemble those facing the RIA industry itself.
