Why I Left: Accountants on Leaving the Accounting Profession
A consistent concern running through the latest employment surveys in the U.S. is the pressure labor issues are exerting on the accounting industry.
The labor shortage in the accounting profession continues to have a major impact on nearly every firm,” the study reports. Firms must balance getting good utilization out of staff while simultaneously creating a positive work environment — and minimizing burnout — to retain top talent.
Over the past two years, there has been a 17% decline in the number of accountants and auditors employed in the United States, and the decreasing number of college students entering the field cannot close the gap.
The Wall Street Journal claims that other factors besides baby boomer retirements are responsible for the exodus. According to the Bureau of Labor Statistics, mid-career professionals and young professionals started leaving the workforce in large numbers starting in 2019.
Experienced accountants are frequently switching to positions in finance and technology, according to recruiters who have been luring them into new positions. Part of the deterrent is accounting’s long hours; 70- and 80-hour workweeks are typical at the largest public firms before tax and audit deadlines.
There is a huge shortage of qualified accountants in the market, resulting in salary increases and an increase in the number of temporary workers. The fundamental talent pipeline issue—that so many college students don’t want to work in accounting—cannot be solved by either development or by people with majors in it.
With the rise of the digital age, many traditional professions have been forced to change to stay relevant. Accountancy is one such field that has been impacted by new technology. In the past, bookkeeping was often done by hand, but now it can be done electronically using accounting software.
As a result, many accounting practices are busy trying to transition into advisories. However, this transition has not been easy, and many employees have felt left behind. Some have even decided to quit the profession altogether. But is this really the solution?
While it may be challenging to adapt to new technology, those willing to embrace change can find themselves in a much better position. With the right attitude, accountants can still play a vital role in the modern world.
Whatever the reason, a few common factors often lead accountants to leave the profession.
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Why accountants leave accounting- dissatisfaction with pay and benefits
Many accountants are leaving the profession due to dissatisfaction with pay and benefits. A recent survey found that nearly one-third of respondents said they were not satisfied with their current salary, and nearly half said they were not satisfied with their benefits.
Accountants are among the country’s most highly educated workers, and many find that their skills are in demand outside of the accounting profession. In fact, nearly 60% of respondents to the survey said they would consider leaving accounting for a job in another field.
So why are accountants so dissatisfied with their pay and benefits? There are several factors at play.
Underpaid
First, there is a general feeling that accountants are underpaid relative to other professions. The median salary for an accountant is just over $60,000, while the median salary for a lawyer is nearly $120,000. Even other professional occupations, such as engineers and doctors, earn significantly more than accountants.
Long Hours
Second, many accountants work long hours and are often required to work overtime. The average work week for an accountant is 47 hours, and one in five respondents said they typically work more than 50 hours per week.
Unsatisfactory Benefit Packages
Third, benefit packages for accountants frequently aren’t as competitive as those for other professions. For example, only 60% of survey respondents said they had health insurance through their employer, compared to 80% of workers in other professions.
Profession in Decline
Finally, there is a perception that the accounting profession is in decline. This is partly due to the increasing automation of many accounting tasks and outsourcing work to lower-cost countries.
Despite these challenges, there are still many reasons to pursue a career in accounting. The profession offers a high level of job security, and accountants are always in demand. In addition, the median salary for an accountant is still higher than the median salary for all workers.
Considering a career in accounting, it’s important to weigh both the pros and cons before deciding. But overall, the profession remains a strong option for those with the right skills and qualifications.
2. Why accountants leave accounting- seeking a change of pace, or a new challenge altogether
The promise of stability and a good salary frequently attracts accountants to the field. However, many soon find that the day-to-day reality of accounting can be pretty dull and repetitive. In addition, the pressure to meet deadlines and maintain accuracy can be very stressful.
There are several reasons why accountants might choose to leave the profession. For some, it may be simply seeking a change of pace or a new challenge. Others may feel they have reached a point in their career where they can no longer advance. And still, others may find that the accounting field no longer offers the same level of satisfaction or opportunity that it did in the past.
Whatever the reason, several factors can contribute to an accountant’s decision to leave the profession. Here are just a few:
A desire for a new challenge
Many accountants long for a new challenge after spending years working in the same field. They may feel they have mastered all there is to know about accounting and are ready to move on to something new.
A lack of opportunity for advancement
Many accountants have reached a point in their careers where they can no longer advance. This can be frustrating and may lead them to seek new opportunities elsewhere.
A change in the industry
The accounting industry has undergone many changes in recent years. Some accountants find that it no longer offers the same satisfaction or opportunity as it did in the past.
A desire for a different lifestyle:
For some accountants, the demanding nature of the profession can take its toll. They may feel they are working too much and not enjoying the other aspects of their life. This can lead them to seek a profession that offers a better work-life balance.
More flexibility
Many accountants need more flexibility to manage their personal and professional responsibilities better. They may seek a position that offers more flexible hours or the ability to work from home.
These are just a few reasons accountants might choose to leave the profession. Ultimately, the decision to stay or go is a personal one that each accountant must make based on their own individual circumstances.
3. Why accountants leave accounting- Repetitive work
For many accountants, quitting their jobs is the only way to escape the repetitiveness. While this might seem like a drastic solution, it allows them to pursue careers that are more rewarding and stimulating. Ultimately, the accountant and the company benefit from this decision.
There are many reasons why accountants leave accounting. One of the most common reasons is that they find the work repetitive and boring. Many accountants also find that they are not challenged enough in their work. They may also feel that they are not paid enough or that their career is not progressing as they would like it to.
In some cases, accountants may leave because they are dissatisfied with the company they are working for or the clients they are working with. Whatever the reason, several things can be done to prevent accountants from leaving accounting.
One way to keep accountants from leaving is to provide them with more challenging work. This can be done by giving them assignments that require them to use their skills and knowledge in new ways. Additionally, providing accountants with opportunities to learn new things and grow their skills can also help to prevent them from leaving.
Finally, making sure that accountants are paid fairly and that their career is progressing how they want it to can also help keep them from leaving accounting.
4. Why accountants leave accounting- Automated out of a job
The rise of automation in accounting is one of the main reasons why accountants are leaving the profession. With more and more accounting tasks being automated, there is less need for human accountants. This means that many accountants are finding themselves out of a job. Several factors contribute to this high attrition rate, but the primary reason seems to be the increasing automation of the accounting industry.
As software programs become more sophisticated, they can handle an increasingly large workload, leaving accountants with little to do. In addition, the software is becoming increasingly affordable, meaning that even small businesses can afford to purchase and use it.
While automation can be a good thing, it can also be bad for those who are not prepared for it. If you’re an accountant, staying up-to-date on the latest trends in automation is important. That way, you can ensure you’re not left behind when the time comes.
As a result, many accountants are finding themselves out of a job or feeling like their skills are no longer in demand. While the accounting profession is still in high demand overall, it is clear that the days of the traditional accountant are numbered. With automation on the rise, many accountants are leaving the profession altogether.
5. Why accountants leave accounting- Not interested in learning advanced technologies
One common reason accountants leave the profession is that they feel like they are not keeping up with the latest technology. In a world where new accounting software is being developed all the time, it can be hard to stay on top of the latest trends. As a result, many accountants feel like they are falling behind and decide to leave the profession to pursue other opportunities.
Another reason accountants may leave the profession is that they are not interested in learning advanced technologies. While many accountants are excited to learn new software and applications, others prefer using more traditional methods. If an accountant feels like they are not keeping up with the latest changes in the profession, they may decide to leave to pursue other interests.
Finally, some accountants may become tired of the profession. After years of working long hours and dealing with complex financial problems, it is understandable that some accountants would want to pursue other career options. If you find yourself in this situation, it is essential to consider your options before making a decision.
6. Why accountants leave accounting- their organization is in the technology stone ages
Innovation in accounting is often discouraged. For all the hype around modern technologies, methodologies, and ways of being, too many accountants find those in charge love the word, “no.” Usually, old men, usually well past their prime and hanging on too long, keep innovation and talent at a safe distance.
Many accountants leave the profession because they feel their organizations are in the technological stone age. They want to work somewhere using the latest and greatest accounting software and where they can leverage their skills. They also may feel that their organization is not keeping up with changes in the profession, such as new tax laws or regulatory changes.
A desire to use cutting-edge technology frequently drives accountants. They want to work with the latest and greatest tools, and their employers will use them too. Unfortunately, many accounting firms are lagging behind when it comes to technology. This can be frustrating for accountants who feel like they’re stuck in the stone ages.
“I’ve been an accountant for 10 years, and in that time, the profession has changed a lot,” says Sarah, an accountant who recently left her job at a large accounting firm. “When I started out, everything was done on paper. Now many digital tools are available that make our jobs easier and more efficient.”
Sarah’s firm was slow to adopt many of these new technologies. “I felt like I was constantly having to fight for approval to use new software or upgrade our systems,” she says. “It was frustrating and made me feel like my skills were being wasted.”
In the end, Sarah left her firm searching for a more forward-thinking organization. “I want to be able to use my skills to their fullest potential,” she says. “I’m not going to stay somewhere that’s stuck in the past.”
If you’re an accountant who feels like your firm is lagging behind when it comes to technology, it might be time to start looking for a new job. There are plenty of organizations out there that are willing to invest in the latest and greatest tools for their employees. And when you’re working with the best technology, you can be sure that your skills will never go to waste.
7. Why accountants leave accounting- Have built a comfortable retirement
Many accountants leave the profession once they have built a comfortable retirement. The demanding nature of the work, combined with the long hours required to be successful, can take a toll on one’s health and personal life. Once an accountant has accumulated enough wealth to retire comfortably, it is often tempting to take advantage of that opportunity.
In addition, many accountants find that they are no longer passionate about their work once they have reached a certain level of success. They may have achieved all of their objectives and no longer find their profession to be challenging.
As a result, they may decide to leave accounting to pursue other interests. While there are many reasons why accountants choose to leave the profession, the most common reason is simply that they have fulfilled their goals and are ready to move on to other challenges.
8. Why accountants leave accounting- transitioning to FP&A to add more value
Many accountants find that they can add more value to organizations by transitioning into financial planning and analysis (FP&A).
In FP&A, accountants can utilize their accounting and finance skills to help organizations decide where to allocate resources. In addition, FP&A provides opportunities to work on a variety of projects and to interact with other members of the organization. As a result, many accountants find that they can use their skills to add more value to organizations by transitioning into FP&A.
9. Why accountants leave accounting- Not being challenged enough in their current role
Many accountants find that they are not being challenged enough in their current roles. They may have mastered all of the necessary skills and knowledge related to their job, and as a result, they may feel stuck in a rut. In addition, they may feel like their job is no longer providing them with a sense of purpose.
Leaving their current role in search of new challenges is an attractive option for these accountants. By finding a new job that provides more opportunities for growth and development, they can ensure that they remain engaged and motivated in their work.
In addition, they can help further their career and build their skill set by taking on new challenges. As a result, many accountants find that leaving their current roles is the best way to continue developing professionally.
Additionally, some accountants simply get bored with the routine nature of their work and feel ready for a change. Accountants may also leave because they are unhappy with their work/life balance or feel like they are being underpaid. Ultimately, there are a variety of reasons why accountants may leave the profession, but it often boils down to feeling like they could be doing more elsewhere.
10. Why do accountants leave accounting- not interested in working in centralized service centers
Many accountants leave the accounting profession because they are not interested in working in a centralized service center. Centralized service centers are often located in large cities, far from the homes and families of accountants.
In addition, accountants who work in centralized service centers often have less autonomy and control over their work than those in other accounting positions. As a result, accountants looking for a more flexible and family-friendly work environment often leave the accounting profession to pursue other career opportunities.
11. Why accountants leave accounting- lack of career advancement opportunities
Many accountants feel stuck in their current position, with no clear path to advancement. This can be frustrating if accountants feel their skills and experience are not fully utilized.
Typically, accountants enter the field intending to advance to a management or leadership position within their company. However, many find that their career advancement opportunities are limited. In some cases, this is due to a lack of open positions. In other cases, it may be because their company does not value their contributions or view them as leadership material.
As a result, many accountants leave the field searching for better career opportunities. While this may seem like a negative development, it can benefit businesses. These professionals can pursue other endeavors that may better fit their skills and talents by leaving accounting. As a result, businesses can benefit from their employees’ expertise in other areas.
12. Why accountants leave accounting- feeling burned out from the profession
Finally, some accountants may simply feel burned out from the profession. As a result of Sarbanes Oxley, the 150-hour credit requirement has unnecessarily pushed young people to get overeducated.The demands of the job can be taxing, both mentally and physically. If accountants do not feel they are in a good place professionally, they may leave the profession altogether.
As an accountant, it’s easy to feel stuck in a rut. The day-to-day grind of bookkeeping and financial reporting can be tedious and repetitive. And because the profession is so detail-oriented, it can be easy to lose sight of the big picture. This can lead to feelings of burnout and disillusionment. As a result, many accountants choose to leave the profession altogether.
For some, this means finding a new, more fulfilling career. Others may start their accounting firm, where they can set their hours and work with clients they enjoy working with. Regardless of the reason, when an accountant leaves the profession, it’s usually because they no longer feel challenged or engaged by the work.
13. Why accountants leave accounting- start a business or pursue a passion
There is a lack of meaning and purpose in accounting. Corporations are great for filling calendars and discounting your contributions. We work to manage the finances and ensure profitability is on track for a flat salary; many discover consulting rewards us better for what we do.
Many people enter accounting to become Certified Public Accountants (CPAs). However, after years of working in the field, some accountants no longer have the same passion for the profession. Several reasons accountants may leave the field include wanting to start their own business or pursue a different passion.
For many accountants, the appeal of starting their own business is too great to resist. Accounting can be very stressful and demanding, and some simply want more control over their work-life balance. By starting their own business, accountants can set their hours and take on as much or as little work as they want. Additionally, many accountants feel they can better use their skills and knowledge to help grow a small business than they could work for a large corporation.
Another reason some accountants leave the profession is to pursue a different passion. After years of working in accounting, some people no longer enjoy the work. It can be repetitive and tedious, and some crave more excitement in their career. Pursuing a new passion allows these individuals to tap into their creativity and explore new interests.
Overall, there are a variety of reasons why accountants may leave the profession. For some, it is simply time to move on to something new. Others may have a specific goal or dream they want to pursue outside of accounting. Whatever the reason, it is essential to remember that there is no shame in leaving a career that no longer brings you joy.
14. Why accountants leave accounting- The CPA is Losing Relevance
https://benjaminwann.com/blog/why-the-cpa-is-really-losing-relevance
In its recently released annual report, NASBA (National Association of State Boards of Accountancy) reported total revenue decreased by 12.4% from 2019. Most of the decrease is attributable to a 13.8% decline in CPA examination and licensing revenue, including application processing, credential evaluations, and score reporting.
The number of CPA exam sections has steadily dropped, from 310,000 in 2016 to 248,000 in 2019. In fiscal 2020 NASBA reported that 204,000 examination sections were processed through the national candidate database, down 18% from 2019, which the association blames the pandemic in the latter half of the year.
Speaking, interest in the CPA credential has significantly decreased since 2016.
Part of the old guard of CPAs and the politicians who run these accounting organizations remain as committed as ever to maintaining the status quo and emphasizing that the CPA is relevant. But behind the scenes, a lot of consternation and handwringing is going on right now.
ICPA’s President and CEO Todd Shapiro recently shared his thoughts on why people might choose not to pursue the CPA credential these days based on feedback they’ve received researching this problem:
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They feel they can take off in their anticipated or chosen careers without it.
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They think that the time commitment and lack of relevance to their personal endeavors of the CPA credential outweigh its value.
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They don’t see the personal or financial return on investment.
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Their employers or prospective employers aren’t supporting or requiring it.
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They see other experiences as being more valuable.
These points are all valid but still incomplete. A glance at the available articles at the bottom still doesn’t answer the question, and most writers try to keep their opinions “above board.”
Prior generations experienced a profession that received tremendous external respect. Accounting was seen as one of the best white-collar professions a person could have. But even in medicine and law, the disruption in the profession has led to people questioning the status, security, and well-being of historically favorable fields.
But, as a CPA, albeit inactive, I am very interested in shedding light on this question and highlighting the real reasons the CPA is losing relevance and is likely to continue doing so without significant changes.
In other words, the time commitment required to earn the CPA credential and its perceived lack of relevance to their personal and professional endeavors outweigh any value it may have.
15. Public accounting is about greed
To survive the system is to sell your soul—you work insane hours in toxic cultures for no real reason. To become a partner is to become part of the problem. 80% of employees leave within 2–5 years as part of the business model.
The industry also overcharges and promises too little for what they actually do—$238/hr is the going rate. Those who work in the field need to turn a blind eye to morals in order to survive.
Administration and compliance have fueled the profession. Companies requiring CPA audits all but guarantee a steady, recurring workflow to CPA firms. Three: younger generations find the model repulsive, and those already in the industry can’t wait to go elsewhere.
Conclusion- accountants on leaving the accounting profession
Whatever the reason, a few common factors often lead accountants to leave the profession. If you are an accountant considering leaving the profession, it is crucial to carefully consider your options and make sure that you are making the best decision for your career.
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