Bridging the Gap: Coping with Accountant Shortage

Colleagues in White Long Sleeve Shirts Sitting and Reading a Financial Report on a Conference Room<br />

Let’s get real: The number of trained accountants is dropping. According to CNBC, fewer college students are graduating with accounting degrees. The number of students completing bachelor’s degrees in accounting dropped by 7.8% between 2021 and 2022, with a consistent 3% decrease annually since 2015, as reported by the American Institute of Certified Public Accountants.

This shortage is causing significant headaches for many companies, including healthcare clinics. But there’s an opportunity to get creative and adapt to these challenges. In this blog, we’ll talk about actionable solutions to help organizations, like healthcare clinics and small practices, focus on dealing with the shortage of accountants and keep on growing.

Reversing the trend

The accounting industry has been grappling with how to address this ongoing trend. According to an article in the CPA Journal, an industry publication, several potential factors contributing to the shortage have been identified, including:

The 150-hour requirement
Accounting is often perceived as unexciting
Compensation tends to be lower compared to other fields like finance and technology
Lack of diversity is evident within the field
The accounting major is seen as overly specialized
High education costs deter prospective students
Declining enrollments in higher education further exacerbate the issue

This perception has prompted many college students to pursue alternative career paths in finance, such as investment banking, consulting, or data analysis, which are perceived as more financially rewarding. This shortage also poses challenges for businesses in staying compliant, making informed decisions, and sustaining growth.

Proposed solutions vary, including efforts to enhance the appeal of accounting, increase starting salaries, reconsider the 150-credit-hour rule, and revise the CPA exam format. In 2024, the new CPA exam will have a new format, consisting of three core sections: Financial Accounting and Reporting, Auditing and Attestation, and Taxation and Regulation. Candidates will take an additional exam in the discipline of their choice: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP). This can help them ease into their specialties.

Streamlining the process

But while waiting for the results of these proposed developments, here are some things you can do if you need an accountant for your practice:

1. Make things easier with technology

Innovative technologies, such as automation tools, cloud-based accounting software, and artificial intelligence (AI), are being developed to combat the accountant shortage. These technologies are transforming traditional accounting methods, streamlining operations, and enhancing accuracy.

According to a Forbes article, these programs enable many organizations, particularly small business owners, to accurately input and modify financial data, leading to more efficient decision-making.

Here’s how technology simplifies processes:

Automation: Handling routine tasks like data entry and reconciliation lets accountants focus on more important things like financial analysis and strategic planning
Use of cloud-based accounting platforms: This provides real-time access to financial data, facilitating remote collaboration and decision-making.
Get AI-driven analytics: This offers actionable insights, predicting trends, detecting anomalies, and mitigating risks.

Using technology not only makes things run smoother but also helps accountants provide more value, which helps businesses grow and generate new ideas.

2. Tap into Specialized Expertise

Outsourcing accounting services is another effective strategy to address the accountant shortage. Finance and accounting were actually some of the first things companies started outsourcing, and it’s still growing today.

Collaborating with specialized third-party firms, such as Synapse, in accounting, auditing, and bookkeeping allows organizations to tap into tailored expertise and resources that meet their specific needs.

Unlock the full potential of outsourcing benefits:

Cost Savings: By outsourcing, you can avoid the costs associated with hiring and training new staff. This means saving your business valuable resources that can be allocated towards other growth initiatives or improving services.
Access to Advanced Technology: Partnering with specialized outsourcing firms like Synapse allows you to leverage cutting-edge technology and innovative tools without expensive subscription fees. With this access, your business will stay competitive and up-to-date with industry trends and practices.
Focus on Core Competencies: When you outsource non-core functions for your practice, you can also concentrate on what it does best. In the case of healthcare practices, the focus is more on improving quality patient care. This strategic focus enhances your competitive advantage and positions your practice’s long-term success.

As the shortage continues, it affects more parts of the accounting profession.

At Synapse, our mission is to streamline the complexities of bookkeeping while providing customized outsourced accounting solutions to propel the growth of your practice. Outsourced accounting and bookkeeping encompass a range of vital tasks: managing and recording financial transactions, tracking income and expenses, maintaining precise financial records, and analyzing business performance. Our services include preparing financial statements, ensuring adherence to tax regulations, managing cash flow effectively, and furnishing essential financial insights to facilitate informed decision-making.

Ready to outsource your accounting tasks with a highly experienced service provider?

Our financial experts are HIPAA-compliant, ensuring confidentiality, highly competent, and trained to address your accounting needs. Meanwhile, our cybersecurity safeguards offer protection against threats. Make the smart move: Contact a Synapse expert today!

Sources:

What to do if you can’t find an accountant for tax season; Lifted from https://www.cnbc.com/2024/01/25/heres-what-to-do-if-you-cant-find-an-accountant-for-tax-season.html

Outsourcing: How It Works; Lifted from https://www.investopedia.com/terms/o/outsourcing.asp

The benefits of outsourcing finance and accounting; Lifted from https://www.forbes.com/sites/xerox/2013/07/12/the-benefits-of-outsourcing-finance-and-accounting/?sh=2251ec925a8e

How technology is changing accounting and bookkeeping industry; Lifted from https://www.forbes.com/sites/forbestechcouncil/2016/08/03/how-technology-is-changing-the-accounting-and-bookkeeping-industry/?sh=18beed9b51ba