Wondering even though there has been an increasing literacy rate and an intensification of learning opportunities through a different medium, there is a severe struggle observed in fulfilling the opening position in the accounting industry; a severe labour shortage. Struggling to find accountants and business boost salary offers is common now globally. The business firms are looking forwards to appointing temporary workers for smooth business operations.
The need for more accountants is nothing but the increasing demand for professionals. Several organizations sought accountants’ help to perpetuate and navigate financial challenges. And firms vie to find the pool of qualified candidates.
More in a sense, the deep shortening leads to an increase in the salary or urges to implore temporary help for accounting and finance team management. Like the departments, financial operations, internal control, and financial reporting need several qualified ones to handle the most crucial responsibilities. A sudden, un-preceding transition can be observed in the accountant employment rate. Expect a 7% increase in the employment rate, which indicates the increasing demand from 2020 to 2030.
Contrary to the statement, there is an increase in people who all pass out the accounting graduation certificate. The problem lies in nothing but the aspirant’s consciousness about graduation rather than focusing on a practical-oriented long-term or short-term accounting course that is available. Firms find it hard to find the fittest employees who have the right skills.
The business field is seeking the aptest one for each accounting role. For instance, in managing financial operations, internal control, financial reporting etc., for numerous companies for all these roles, there have been number one people waiting for the aptest one. The shortage of enough qualified professionals is severely observed as an after-effect of Covid-19. There is an increase in the rate of retiring baby boomers has been observed after the pandemic invasion, specifically from early 2020. The lack of accounting and audit workers impacts the industries without any industry size or merit disparity. The shortage leads to the development of inaccurate financial statements or accurate.
And here is to mention some other aspects regarding the accountant shortage. There it seems accountants have the tendency to leave their professional life entirely, and in other aspects, the accountants are relieving their jobs to utilize the added advantage of the tight labour market and demand for earning high salary packages and having more flexibility.
The lack of enough qualified professionals leads to severe errors and may be the chance that errors cannot be notified. There is a 17% decline in US accountants observed, and even college students cannot cope with the gap. More in a sense, the repetitive task in accounting leads to less interest among the aspirants even if they have mastered it.
Reasons why there is a labour shortage in accounting
Increased demand for accounting services: There is wide and expeditious growth in the accounting industry. The business service and related areas become more complex. There is an increase in business demand in the industry. Thus, the complexity and increasing demand lead to an accountant shortage; more specifically, the industry experiences a need for more qualified professionals.
A limited supply of trained accountants: Even though the aspirants have enough certification, they don’t have enough practical skills in most cases. It takes time to train and educate the candidates. Because there may not be enough training during the period of schooling.
Ageing population of accountants: The retirement of experienced professionals and the need for more candidates as enough replacements is challenging in the sector. Aftermath of Covid-19, sudden job quitting is observed among the baby boomers.
Attraction to other industries: Pursuing a career in other industries is common now in the accounting sector. There are people who are trained as accountants looking forward to jobs in another industry.
Competition for top talent: The increasing competition, stress, and like factors lead to the hiring of better and qualified professionals leading to the shortage of available candidates.
Why do employees quit accounting jobs?
Lack of career advancement opportunities: If the employees feel that there is no room for self-development in their careers, then they will look for new opportunities.
Poor work-life balance: Overtime working or long working hours leads to burnout, which leads to job quitting.
Dissatisfaction with salary package: If the employees don’t fairly compensate that underpaid, then the factor leads to provoking employees and leading to quitting their jobs.
Poor workplace culture: Dissatisfaction regarding the working conduction, especially the physical environment, support, and equipment, may be more likely to quit.
Better opportunities: Getting better opportunities which include offers regarding better pay, benefits, and advanced opportunities, leads to quitting the current job and accepting the new offer.
Lack of job satisfaction: If there is no enjoyment in work, it does not feel like any job fulfilment, and then there may be cancer to pursue other industry opportunities.
Opportunities in the accounting industry
Public Accounting: The accountant capable of working with clients to prepare financial statements, audit records preparations, tax consulting, and preparation-like accounting actions open wide opportunity in the field. Moreover, the complexity, unexpected, and unpreceded changes in tax regulations increase the demand for accountants.
Private Accounting: The increasing demand for financial management, preparation of financial records, consultation etc., like different accounting roles are awaiting you in various global industries.
Government Accounting: For managing the public funds properly for handling the federal, state, and local governments with transparency, and accountability, efficient accountants have to be needed. Thus, numerous opportunities await an accountant in the government industry.
Nonprofit Accounting: Opportunities in working for nonprofit organizations for financial actions.
More in a sense, the aspects of teaching, researching, and entrepreneurship, like various fields, open wider opportunities, but you have to remember enough skill is necessary for job attainment.
On the other hand, if you may think accountants or qualified professionals cannot be attracted to the job offer, the firms have to introduce the most attractive offers. Some of them are below:
Increase salary offer: By increasing salary offers and other benefits, the business can attract the most eligible candidates and also make the job position more attractive and positively generating.
Appoint Temporary workers: Hiring temporary employees or in contract until the gap of continuing regarding the lack of enough employees is resolved. If permanent employees cannot be found, then for short-term and long-term needs, the great solution is hiring the employees temporarily.
Make use of recruitment agencies: For identifying qualified candidates, the business firm can gain the opportunity to get in touch with the most acceptable existing recruitment agencies. The agency helps to attract newly qualified candidates by attracting talent and helps the organization to fulfil their candidate needs.
Offer training and development opportunities: For retaining better talent, it is good to offer employees development by investing in training and development. Providing a greater opportunity for skill development is another attractive offer which aids the company in retaining the most eligible knowledgeable candidates.
By summarizing the findings, it is proved that if there are no flexible work arrangements with attractive professional development opportunities, which leads to accountant shortages. Hiring temporary workers is a solution up to a level, but not a permanent solution.
How do you upscale yourself as a qualified accountant?
Skill acquisition is one of the major criteria you make an apt for the industry. Beyond graduation, one has to be acquainted with a relevant course focusing on skill development. Several jobs-oriented short-term and long-term accounting courses make aspirants the best competition in the job market.
Job oriented courses
- PG Diploma in Indian and Foreign Accounting Course (PGDIFA)
- PG Diploma in Business Accounting & Taxation ( PGBAT)
- Certification in Business Accounting & Taxation (CBAT)
- Diploma in Indian Accounting (DIA)
- SAP FICO
- DIGITAL MARKETING
- RETAIL BANKER
Short term courses
- Tally prime
- Zoho Books
- UAE VAT
- MS Excel
Finprov acts as a strong career guide for aspirants by providing quality education as well as an opportunity to get familiar with practical-oriented training. Our job-oriented courses, such as CBAT, PGBAT, PGDIFA, BAP, DIA, and professional course CMA USA, along with the short-term course like GST, UAE VAT, MS Excel, SAP FICO, Tally Prime, Zoho Books etc., are a window for stable career development in the sector. Being a strong companion Finprov makes you eligible for placement and a reputed job designation. The hands-on experience, high-quality lab facilities, expert faculties, hybrid learning methods and flexible learning atmosphere allow aspirants to become valuable in the field.