The accountant shortage is a growing problem in the United States. The number of accounting graduates has been declining in recent years, while the demand for accountants continues to grow. This has led to a shortage of qualified accountants, which is causing problems for businesses and organisations of all sizes.
Statistics and trends that demonstrate the severity of the shortage:
- The number of accounting graduates in the US has fallen by about 20% since 2010. Source: AICPA
- There are currently over 1 million unfilled accounting jobs in the US. Source: Bureau of Labour Statistics
- The Big Four accounting firms – Deloitte, EY, KPMG, and PwC – have all said they are facing a talent shortage. Source: Deloitte
- 17 percent decline in employed accountants and auditors from a 2019 peak. Source: The Wall Street Journal
Factors Contributing to the Accountant’s Shortage:
The shortage of accountants in the US is a result of a number of factors like lack of accounting graduates in recent years, the increasing number of retiring accountants, the increasing complexity of financial regulations, and the perception that accounting is a boring and unglamorous career.
Impact on Businesses Due to Accountants’ Shortage:
The accountant shortage in the US has a profound impact on businesses across various industries. The difficulty in finding qualified accountants to fill open positions poses has been creating challenges for companies seeking to maintain accurate financial records and make informed decisions. The scarcity of skilled professionals is leading to increased costs, as businesses invest heavily in hiring and training new accountants.
Moreover, with limited resources, there is a huge risk of financial errors and potential fraud, affecting the company’s financial stability and reputation. In fact one of the leading news portal Economic Times stated “Accountant Shortage Leaves US Cities Without Credit Ratings”. This means that these cities may have difficulty borrowing money from investors or lenders. This could have a negative impact on the ability of these cities to finance important projects or services.
Career Opportunities Due to Accountants’ Shortage:
- High demand: The demand for accountants is expected to grow in the coming years, due to the increasing complexity of financial regulations and the growth of the tech industry. The need for accountants is expected to grow by 6% by 2025. Source: Bureau of Labour Statistics
- Good salary: Accountants typically earn a good salary, with the average annual salary for an accountant being over $70,000. Bureau of Labour Statistics
- Job security: Accounting is a stable career with good job security. The unemployment rate for accountants is consistently low.
- Variety of opportunities: There are a variety of accounting career paths available, so you can find a role that matches your skills and interests.
The accounting profession is a rewarding career choice with a lot to offer. If you are looking for a career that is challenging, rewarding, and in high demand, then accounting may be the right choice for you.
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