You’re not alone.
The number of students earning a bachelor’s degree in accounting in 2022 was down 7.8% from the prior year, according to the American Institute of Certified Public Accountants.
One of the most glaring examples of the accountant shortage came recently from North Carolina-based Advance Auto Parts which publicly stated it had identified a material weakness in its Internal Control over Financial Reporting (ICFR) due to turnover in key accounting positions and requested four extra days to file its quarterly report. The company said it wasn’t able to attract and retain enough qualified people to fulfill these roles.
And the accountant shortage won’t be improving any time soon. According to the U.S. Bureau of Labor Statistics, job openings for accountants and auditors are projected to grow by 4% from 2022 to 2023 — with about 126,500 openings each year due to retirements.
The demand for skilled accountants has risen due to the complexity of modern financial systems, changes and increases in regulations, and the growing global economy.
Many experienced accountants from the baby boomer generation are reaching retirement age, resulting in significant loss of skilled professionals.
Some industries are finding that accountants lack the specific skills or experience required to fill open positions.
According to a recent Bloomberg Tax analysis study, there was a 17% drop in employed accountants and auditors from the peak in 2019. Despite this decline, the demand for experienced talent is showing no signs of slowing.
Companies rely heavily on their accountant or internal finance professional to complete increasingly complex and challenging work while adhering to ever-changing rules and regulations. With a reduction of available talent, businesses run the risk of maintaining accurate records and upholding integrity in financial reports.
While companies struggle to fill essential vacant accounting positions with short supply, many business owners and not-for-profit executive directors are finding outsourcing to be a viable solution.
When you hire a full-time accountant, you have to calculate all of the associated direct and indirect costs with that hire, including payroll taxes, health insurance worker’s comp insurance, benefits, paid time off, training expense, management time, office space, and IT requirements. And, when that individual leaves, turnover expenses can add up quickly.
With ARI, you get not only a staff accountant who can handle all of your business’s day-to-day accounting tasks, but also an individual who serves as your CFO or controller- all for a fraction of what one internal hire would cost.
But Perhaps the most compelling reason to outsource is business continuity. If your internal accountant suddenly decides to leave your organization, you may be left in the lurch with no one knowing how to pick up the pieces -or even what pieces have been dropped. With ARI, you can take comfort in the fact that you will have a minimum of two individuals managing your accounting needs, so your organization is always covered when it comes to meeting your financial reporting deadlines.
Not convinced yet? These are only a few of the benefits of outsourcing your accounting function. Here are several more.
If you’d like to explore if outsourcing is a viable solution for your organization, contact us today.
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