The Great Exodus of Accountants

Over 300,000 U.S. auditors and accountants have lost their jobs in the last two years. This represents a 17% decline and a decreasing number. college students coming into the field can’t fill the gap. 

Deeper workplace shifts are driving the exodus, rather than baby-boomer retirements. The Bureau of Labor Statistics reports that high numbers of professionals between the ages of 25 and 34 and mid-career professionals between 45 to 54 years old left the workforce in 2019 in high numbers. Experienced accountants are moving into new jobs, according to recruiters who have lured them into these roles. jobs in finance and technology.

There is a huge gap between the companies that require accountants and those who are trained professionals. This has resulted in a rise in salaries and more workers entering the sector. Still, neither development will fix the fundamental talent pipeline problem: Many college students don’t want to work in accounting. Even those who majored it.

KPMG employees volunteers to pack food boxes for the Los Angeles Regional Food Bank in City of Industry (Calif.) on the 125th anniversary of the accounting consultancy firm on Aug. 2, 2022. (Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via Getty Images / Getty Images)

Jordan Pixley brought his love of numbers and attention to detail to his Clemson University accounting classes. But in internships, he felt bogged down by the repetitive tasks of accounting — such as balancing cash sheets — and the work proved less interesting than the college class he enjoyed most: data analysis.

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The 22-year old accounting major attended a KPMG LLP recruitment event in Orlando, Fla. but decided not to apply. He was unable to find a job after graduation and is now exploring military opportunities. Accounting’s grueling hours —70- and 80-hour weeks are common at the biggest public firms before tax and audit deadlines — were part of the turnoff, he said. 

“I was a little scared of it, not going to lie,” Pixley said. “I don’t know if I want to do all that.”

KPMG stated that it is looking at ways to reduce overtime and work during busy seasons. KPMG’s entry-level employees in audit, tax, and advisory services will be paid 5% to 15% more than those who joined the firm in 2022. Salaries vary depending on market and job position. The posted range for an entry-level tax associate job in New York City is $71,000-82,000. This requirement requires that firms disclose the pay of employees.

According to a spokesperson for KPMG, the majority of KPMG employees have seen three pay raises in the last twelve months. Paul Knopp, CEO, spent several days on college campuses this fall, visiting the University of Illinois and University of Texas at Austin, to pitch the company and meet with students. He said the profession hasn’t done enough to help students understand the career options in accounting. 

KPMG is among the Big Four accounting firms. (iStock)

“The accounting degree is an incredible, powerful tool to help you succeed longer term in the business world,” He said. 

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It isn’t an easy sell, said Steven Kachelmeier, who leads UT-Austin’s accounting department. The competition to recruit students has increased as accounting majors have declined. 

Prof. Kachelmeier explained that companies promise higher salaries after a few staff years. “when you’re 19 years old, you don’t think about 10 years from now or even five years from now. You think about right now.”

Students want to make more money up front than many accounting firms are paying — and they are finding it in other industries, according to professors. These opportunities are a result of a decade-long economic boom, which has created new jobs in tech and banking. According to recruiters, top students can earn significantly more working for banks and consulting firms, which are two fields that draw quantitatively-minded students right out of college.

“I don’t know who we’re not competing with, quite honestly,” said Rod Adams, who leads PricewaterhouseCoopers LLP’s hiring in the U.S. and Mexico.

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The firm is looking to recruit 4,200 entry-level associates in fall 2023. Adams explained that many students do their internships after their sophomore year. Many of these interns go on to a second internship in their third year. Many of them go on for full-time employment. 

For many accounting graduates, there is still one significant barrier to entry. To earn a certified professional accountant license, a professional needs 150 credit hours, or 30 college credits beyond the typical 120-hour bachelor’s degree requirement. Additional tuition and fees can add up to thousands of dollars for the fifth year of college. 

Accounting is a field that appeals to some students who are mathematically inclined. However, it still has a stigma about being boring and hard work. (iStock / iStock)

PwC has joined with Saint Peter’s University, based in Jersey City, N.J., so that some students can get the 30 extra college credits by working at the firm. The company will pay tuition and reimburse students for the entire year of work. The company leadership hopes that the pilot project that allows students to work for credit will encourage more young professionals to continue their studies in accounting and become full-fledged CPAs. 

The number of U.S. students who completed a bachelor’s degree in accounting declined by nearly 9% to about 52,500 in 2020, down from almost 57,500 in 2012, according to the Association of International Certified Professional Accountants. The slump has continued over the past two years, according to the group, though it hasn’t published final numbers for 2021 and 2022. A smaller number of students are taking the four-part exam to become a CPA.

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Accounting is a field that appeals to some math-inclined students, but it still has a stigma, according to Keith Wolf, managing Director at Murray Resources in Houston. Employers are sending young professionals to the field. high-school classrooms A TikTok campaign has shown the field in new light and attracted millions of viewers to help change that perception.

Wolf says accounting is a steady path to stable work but that there are simpler ways to enter business.

“There’s so many options,” He said. “Why pursue a much more difficult path?” 

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