Accounting Industry Faces Shortage of Talent: Challenges and Solutions

Allison Sajkoski, a Massapequa resident, started her career as an accountant in 2021 but made a surprising exit just a year later. The demanding work schedule and the challenges of remote work during the COVID-19 pandemic pushed her to leave the field at the age of 26. Sajkoski described her experience as isolating, with 80-hour workweeks and no downtime, leading her to switch careers to become a certified financial planner.

Her story sheds light on a nationwide shortage of accountants, driven by factors such as work burnout, lagging salaries, stringent educational requirements, and a growing number of baby boomers retiring from the field. Last year, there were 186,000 fewer accountants and auditors in the U.S. compared to five years earlier, with Long Island facing a similar trend.

The shortage has led to challenges for accounting firms, with smaller and medium-sized firms struggling to match the salaries offered by larger firms like the “Big Four.” Salaries for accountants are starting to increase, with average starting salaries on Long Island ranging from $65,000 to $90,000 depending on the firm size.

To address the talent shortage, accounting firms are offering more competitive salaries, flexible work schedules, and better work-life balance. Some firms, like KPMG, are starting projects earlier to reduce the time crunch during busy seasons and are supporting employees to prevent burnout.

Despite the barriers to entry, including the 150-hour college credit requirement for CPA licensure, efforts are being made to create alternative pathways to becoming a CPA. Some states have passed legislation to allow licensure with a bachelor’s degree, work experience, and passing the CPA exam.

Overall, the accounting industry is facing significant challenges due to the shortage of accountants, but efforts are being made to attract and retain talent while addressing the changing needs of employees in the field. Allison Sajkoski’s journey highlights the evolving landscape of the accounting profession and the importance of adapting to meet the demands of the modern workforce.