Four reasons why CPA firms lose young professionals. And what to do about it.
By L. Gary Boomer
I think there are obvious reasons accounting graduates are not sitting for the CPA exam and staying in public accounting. Some of the more relevant reasons are:
1. A large percentage are going into private accounting right out of school. (About 70% from the last statistics I saw.)
2. Firms work them too many hours and don’t provide the required technical, soft and IT training. It is all about the charge hour in most public accounting firms.
3. The exam is difficult and many candidates procrastinate. Firms need to develop fast track programs for getting people through the exam as quickly as possible. Existing CPAs de-motivate many candidates by referring to how the exam is easy since is computerized. Most CPAs can’t tell you the four parts, nor could they pass it today.
4. Many firms are top heavy and younger people don’t see their significance or buy into the vision of the firm.
Most of these are negative, but all progress starts with the truth. The one thing firms should communicate is that a CPA can have the 10 to 20 lifetime jobs talked about by the generational experts . They can even be with the same firm. The CPA certificate provides a multitude of opportunities.
7 Responses to “Gary Boomer: On the Staffing Crisis”
ron
With no disrespect to Gary and his very succinct (and right-on) list, I think Mr. Eckelcamp makes the best point.Young people today are looking for freedom not constraints.
The Profession needs to get the message out that CPAs can, and do, look over the hood, and are not just focused in the rearview mirror!
John
Accountants need their own union because the accounting board does not act in the best interest of its workers. A clear line needs to be delineated between an Associates in accounting and Bachelors because the wages are merging. Nurses for example make $60k+ with just an associates degree and 1 year of experience. Accountants make $35K. CPA’s make $50k. WTF?
Jason Lee
For all the work CPA’s have to do there isn’t that much money. Think about it. You need an undergrad in Accounting (by far the toughest business degree) then you need a masters as well and top of it you have to pass the CPA. Then you do public accounting working 60-80hours a week. For what $65K with $2k bonus??
I have friends in Sales with Communications degrees making twice that working 9-5. The profession is underpaid. A CPA with Masters degree and 2-3 years Public Acct should be making minimum 100K.
It’s All About the Charge Hour | Innovative Practice Management
[…] a recent post on Trendlines, Gary Boomer held forth on the staffing crisis in our profession. Succinct and to the point, Boomer lists four reasons. While all four are […]
Chad Bordeaux
I still do not understand why these individuals that go into private accounting do not sit for the exam. I went into private accounting initially out of school. I passed the CPA Exam within my first year on the job and got a big fat raise. Even private companies want qualified accountants – not just someone that got through school. Not only that, my annual raises far outpaced those of my non-CPA peers. I advanced further and faster within the company than my peers – most of whom did not advance far past their initial job after years on the job. My point is that taking the exam does not benefit just those in Public Accounting, but also those in industry. Look through the paper – how many Controller or above positions require or desire a CPA. Notice that they do not say “Public Accounting Experience,” but rather CPA. They want the title.
Also of note, is that the schools themselves should be encouraging the taking of the exam prior to graduation. I took the exam as a Senior – barely studied, and passed two parts. Why? Because all of the information was fresh in my brain. I didn’t wait a year or two so that I could forget it. I barely missed the other two parts. In fact, if I had actually studied, I am sure I would have passed them too.
Greg Engleside
It’s important to remember, as well, the facts of economics. If the deamnd was really there in CPA firms, wouldn’t the salaries be more competitive? The real questions then, is: What’s wrong with the business model that it fails to attract qualified labor?
Just my two cents.
Keep up the good work!
Joe Eckelkamp
A corollary to your comments is the plethora of standards/rules arising today turn-off the best and brightest (and creative) minds. Greater appeal lies for them in finance and management accounting than in the CPA’s rule-centricity. Far too many pronouncements today place form over substance and don’t make sense–at least not other than to cover one’s behind. That theme doesn’t resonate with today’s youth the same way “helping to make good decisions” does.