At the beginning of last year, a survey conducted by Going Concern aimed to identify the key challenges facing the accounting profession in 2024. Initially, the talent shortage emerged as a leading concern among respondents. However, as the year unfolded, it became evident that the most pressing issues were not solely related to talent, but rather encompassed offshoring and the influence of private equity on firms.
The talent shortage persists, yet it has been observed that firms seem disinterested in addressing the issue comprehensively. Instead, there is a trend of increasing offshoring as companies adapt to evolving business models while older generations of accountants exit the workforce, often cashing out with large sums from private equity investments. The commentary asserts that the industry is experiencing a significant shift, prompting concerns over the sustainability of accounting practices moving forward.
Alongside these challenges, the survey revealed insights on topics that respondents felt were not receiving adequate attention. For instance, many highlighted low salaries as a major issue, despite it being a frequently debated topic. The National Pipeline Advisory Group's report, released over the summer, drew significant focus to salary as a critical factor in the declining numbers of students pursuing accounting degrees. Interestingly, prior to this report, the American Institute of Certified Public Accountants (AICPA) tended to divert attention to other factors rather than address the starting salary concerns directly.
The responses to the question on under-discussed issues included a variety of concerns, reflecting broader sentiments within the industry. Topics such as the lack of leadership and ethics, the implications of offshoring amidst a talent shortage, and the pressures surrounding long working hours were prevalent among the nearly 200 write-in responses.
Moreover, concerns about the confluence of offshoring and automation have emerged as key points of discussion. For example, the impact of artificial intelligence on roles typically performed by offshore staff has been noted. As AI technologies advance, traditional roles in call centres and basic accounting tasks may be rendered obsolete, prompting significant debate about future staffing models.
Additionally, a recurrent theme among responses involved the negative culture within accounting firms, which some argue drives talented individuals away from the profession. The industry's traditional emphasis on billable hours and the pressure exerted by partners were cited as detrimental to work-life balance and overall well-being, underscoring a growing urgency to reevaluate existing practices.
As the sector prepares to navigate 2025, industry commentators suggest that these pressing issues, primarily offshoring and the private equity trend, will continue to dominate discussions about the future of accounting. The survey's final question invited participants to consider whether they would prioritise work-life balance in the upcoming year, further illustrating a shift in focus towards holistic workplace considerations.
The 2024 predictions survey serves as a platform for dialogue on the evolving landscape of the accounting profession, highlighting the challenges and opportunities that lie ahead. The anticipated consequences of generational changes, alongside technological advancements and financial shifts, suggest a complex environment for firms as they strategise for sustainability and growth in the next decade.
Source: Noah Wire Services