Three Ways to Thrive with Limited Capacity

smiling man working at laptop in office with glass walls

Turn the staffing shortage into a new opportunity.

By Frank Stiteley
The Relentless CPA

Charles Dickens had to be writing about the accounting profession when he wrote, “It was the best of times, it was the worst of times.”

Clients are plentiful. I met a new client coming out of the restroom at our office complex. We get four to five inquiries a day – out of tax season. During tax season, we turned down four out of five prospective clients.

MORE ON STAFFING: Tax and Accounting Jobs and Salaries Show Strength | Olympics of Outsourcing and Offshoring for Accountants | New Study: Strong and Steady Growth for Accountant Jobs and Salaries | Can’t Recruit? Retain! | Is Tech Causing Both CPA Shortage and Low Salaries? | Staffing Tops List of Woes at CPA Firms | To Replenish the Talent Pipeline, Go Back to the Classroom | Whole Person Retention: When It’s Not Just the Money | More Big Firms Shut Their Doors to New College Grads | Seven Enticements to Keep Talent On Board | Employee Retention Is Easier Than Attraction | Let Interns Fix the Staffing Shortage? | Disruptors: Talent Crisis? What Talent Crisis? | Firms Culling Clients as Staffing Woes Persist
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

 

Staff are not plentiful – at least not good ones. I’m getting two or three resumes a day, but they’re the warm body sort most of us learned the hard way not to hire during the pandemic. You’ve seen these resumes too. They are people with six employers in eight years. You are certain to be number seven in nine years. They claim eight years of experience, but you can see from their job history that it’s really two years of experience repeated four times. And – they want $100K for those two years of real experience.

READ MORE →

Can a Service Center Model Solve Audit Staffing Shortages?

Providing superior client service eliminates the perception of audit as a commodity.

By Alan Anderson, CPA
Transforming Audit for the Future

Most firms have abysmal project management, which makes it nearly impossible to see if there’s any room to take on extra work. Plus, piling all the work into busy season means your people already work far beyond 40 hours a week. And, if you’re relying on timesheets as a measure of capacity, you may not be capturing the time your staff eats because the work is taking more than 40 or even 60 hours in a week to complete.

MORE: Don’t Take on Audits in an Industry You Don’t Understand | Four Questions to Make Your Firm More Successful as a Business | Say Adios to Audit Fee Pressure | Deliver More Audit Value by Getting Out of the Conference Room | Six Essential Elements in Audit Planning | Before the Audit: More Than Just Planning | Five Crucial Attributes for Successful Audit Leadership | Put the Ethics Code to Work for Your Clients and Your Firm | Is Audit in Crisis Because of Definitions?
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

 

During the 2020-21 COVID-19 pandemic, some audit firms had to lay people off, or reduce work hours as projects got canceled or curtailed. But the long-term trend for years has been a shortfall in talent that will only get worse. Burnout from overwork is the number one cause of employee turnover.

READ MORE →

Report: Efficiency Still the Top Priority for Accounting Firms

Tech’s the tool, but AI? Not yet.

By CPA Trendlines Research

For the second year in a row, the Thomson Reuters State of Tax Professionals Report finds that improving efficiency is the top strategy priority for accounting firms, but this year, for the first time, it ties with talent.

As the report notes, the two priorities are tightly linked in the sense that efficiency is linked to productivity. The former drives the latter.

MORE: Is Tech Causing Both CPA Shortage and Low Salaries? | Audit Firms Nervous about New Tech | To Replenish the Talent Pipeline, Go Back to the Classroom | Beware the Work-Life/Workload Doom Spiral | Why the Dry Pipeline? It’s About Time | Business Model Transformation: Do It or Die | Whole Person Retention: When It’s Not Just the Money | Global Trends Show Many Dissatisfied CPAs | More Big Firms Shut Their Doors to New College Grads | Seven Enticements to Keep Talent On Board | Let Interns Fix the Staffing Shortage? | Disruptors: Talent Crisis? What Talent Crisis?
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

 

The report is based on an international survey of 500 respondents, about half in the United States, with the rest in the United Kingdom, Canada, Australia, Brazil and Argentina. Data comes from the first quarter of 2024.
READ MORE →

Business Model Transformation: Do It or Die

pair of diagrams
Adapted from AICPA and other sources.

 

Four areas ripe for change.

By CPA Trendlines Research

Five ugly facts your firm may need to deal with:

  1. Seventy percent of CPAs are at or near retirement age.
  2. The numbers of accounting graduates and CPA exam candidates are both dropping.

MORE: Global Trends Show Many Dissatisfied CPAs | More Big Firms Shut Their Doors to New College Grads | Seven Enticements to Keep Talent On Board | Employee Retention Is Easier Than Attraction | Let Interns Fix the Staffing Shortage? | Disruptors: Talent Crisis? What Talent Crisis? | Accountants’ Advice: Be Careful, Quick, Creative … and Lean | Top Performers Lead in Leverage, Culling, Outsourcing | Firms Culling Clients as Staffing Woes Persist | Compensation’s Up, but Up Enough to Retain Staff? | Are Accountants Charging Too Little?
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

 

  1. Gen Z (ages 20-30) is transforming the labor market with new values on workplace environment, compensation, benefits, leadership, DEI policies, culture and corporate mission.
  2. The majority of current CPAs have no interest in becoming partners.
  3. Roughly half of current CPAs might consider finding another firm, and almost 15 percent wouldn’t mind leaving the profession altogether.

READ MORE →