The End for Accounting & Tax Professions?

Today, I wanted to talk about the outlook of the accounting profession. According to the Wall Street Journal, 300,000 U.S. accountants and auditors have left their jobs in the past two years, that’s a 17% decline.

Are the accounting & tax professions dying like some say? Is it too difficult to work in public accounting with the long hours and tedious work? Is a CPA even worth it anymore?

In this blog post, I’ll discuss all of that, and my journey into becoming a solo accounting & tax professional, meaning no employees. I’ll share my insights for those looking into the field of accounting or becoming a CPA, and insights into how technology can impact the field of accounting and taxes. 

Take it from me. Accounting is a really important job because it helps businesses, organizations, and individuals keep track of their money. Accountants make sure that financial transactions are recorded accurately, and that financial statements are prepared correctly, and that taxes are paid on time. All of this helps these organizations make good decisions about their money and plan for the future.

There are also a lot of different things you can do as an accountant. You could work for a big company, a small business, or even for yourself. You could also specialize in a certain area of accounting, like taxes or auditing. This means that you can choose a job that best fits your interests and skills.

Another reason why accounting can be a good career choice is that there’s always a demand for accountants. Businesses and organizations need someone to help them with their finances, so there are always job opportunities available. Plus, as long as you keep learning and staying up to date with new technologies and practices, you'll be able to keep your job skills fresh and in demand.

Overall, if you're someone who likes working with numbers and solving problems, and if you're interested in how businesses and organizations manage their money, then a career in accounting could be a great fit for you!

So if it’s so great why are accountants leaving the profession and why are so few accountants entering traditional work as an accountant?

There are lots of reasons why accountants have chosen to leave the profession, such as seeking a new change in their career path. Maybe they’re looking for new challenges. Or maybe their turned off by factors such as low pay, long hours, or high levels of stress. 

Also, with the increased adoption of technology in the accounting profession, this has led to feelings of job insecurity, and a sense of uncertainty about the future of the profession. Fewer people are also entering traditional work as an accountant due to these changes or because they’re attracted to other careers that may be more fulfilling or exciting. 

However, the accounting profession still remains an important and vital part of the business world, and there are still many rewarding opportunities available for those who are interested in the field.

For me, I started out with an accounting degree from my state university, I interned at some manufacturing companies in Chicago doing some of the most boring work you can imagine. I studied for and got my CPA. I worked in public accounting for about four years doing accounting, auditing and taxes. It was good experience, and fast paced, but the pay was pretty low. 

Back then, these employers knew that public accounting was a career track that could lead to great opportunities, so starting pay was often below average. They’ve since improved the pay structure, I hear. Ultimately, it’s a trade-off for really good experience, that you can use later in your career.

With this and other skills I picked up along the way, I was able to confidently open my own accounting and tax preparation business. And having CPA credentials is a great marketing tool. And it’s instant credibility. You can say that I left the 9 to 5 grind, to work for myself, well before it was fashionable to do so, like it is right now.

Is becoming a CPA worth it any more?

If someone was asking me today if it’s worth pursuing or becoming a CPA. I would answer… no. It’s a challenging process that requires 150 credit hours of college education, actual public accounting work experience, and passing the grueling CPA exam. It primarily allows one to attest or sign off on third party financial information, and is the highest level of assurance that one can provide.

If you just want to do taxes, you can study to become an Enrolled Agent, and take some accounting classes, and be just as good as a CPA if not better. If you just want to do bookkeeping, you can find many good bookkeeping courses, and do very well with a bookkeeping service. Having a CPA behind your name can definitely help open doors for you, but personally I don’t think it’s worth it anymore. 

What do you think?

With technology, automation, machine learning, blockchain technologies, and now artificial intelligence. It all has the power to change the way that accounting and tax work is done. Here's are some examples how:

We know the IRS is working on ways that it would calculate your tax return for you, and let you know how much is your refund or how much you would need to pay. When this rolls out in the near future, basic level tax preparers would no longer be needed.

As much as accountants are starting to despise them, QuickBooks is getting better and better with machine learning and automations. As it improves and becomes more reliable, the need for accountants and bookkeepers will go down. But for now, they are very much needed to clean up messed up QuickBooks files.

In the area of auditing, blockchain technologies have the power to disrupt the field with its decentralized and distributed ledger, which can help make sure that financial records are accurate and that there are fewer mistakes or fraud.

Overall, it's hard to say exactly how technology will change accounting and taxes, but it's clear that they have the potential to make big changes and improvements. It's important for people in these fields to stay up to date with the latest developments in technology and think about how it might impact their work.

With that being said, the field of accounting is vast and is still a great line of work to get into. I don’t think the need for traditional accountants will ever go away, entirely. 

Look at me for example. I’m slowly transitioning to the creator economy, simplifying taxes and accounting for nice people like you. I’m unpacking my knowledge and experience into really useful courses to help you file your taxes and ultimately to become tax savvy. Links are in the description if you’re interested.

What about accounting firms moving work overseas?

You know what they say, necessity is the mother of invention. All the big firms are establishing offices in India and the Philippines and hiring the local professionals to work remotely on US jobs. The overseas office workers will do the "grunt work" or the tedious work that no one else wants to do. And back in the states, they’ll do the project management, quality control, and client relations work.

Please share your thoughts with me on the future of the accounting profession. Does it still sound appealing in this day and age? In my opinion, it’s still a very lucrative field with lots of options for stable and steady work. 

But, it’s getting harder and harder to find a good accountant, at least in my area. If you need one, find one sooner rather than later, and be delighted to pay their professional fee. A lot of them aren’t even accepting new clients anymore, myself included.