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ACCOUNTING SHORTAGE

The accounting industry in the U.S. is facing a significant shortage of graduates due to declining interest in the profession, misconceptions, and high barriers to entry, with 83% of surveyed professionals expressing concern over the issue. Additionally, the shortage is exacerbated by mass retirements and the need for firms to adapt through outsourcing and technology investments. In the Philippines, a study highlights that salary and workload are major factors contributing to a faculty shortage, leading to increased stress and turnover intentions among accounting faculty members.

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193 views2 pages

ACCOUNTING SHORTAGE

The accounting industry in the U.S. is facing a significant shortage of graduates due to declining interest in the profession, misconceptions, and high barriers to entry, with 83% of surveyed professionals expressing concern over the issue. Additionally, the shortage is exacerbated by mass retirements and the need for firms to adapt through outsourcing and technology investments. In the Philippines, a study highlights that salary and workload are major factors contributing to a faculty shortage, leading to increased stress and turnover intentions among accounting faculty members.

Uploaded by

Galle Unday
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ACCOUNTING SHORTAGE

Understanding Large Accounting Firm Perceptions on the Decline of Accounting Graduates and
Implications of Supply Shortages
The accounting industry in the United States faces a persistent supply shortage, exacerbated by declining
undergraduate interest. The Association of International Certified Professional Accountants (AICPA) has
reported a decline in accounting bachelor’s and master’s degrees over the last five years, with the largest
drop in 2021-2022 (AICPA 2023). Misconceptions about the profession, high barriers to entry, and
generational values are factors in this decline. Mass retirements of Baby Boomers and exits of young-to-
midcareer professionals put further strain on the shortage. This study aims to better understand the
perceptions of accounting professionals at large accounting firms regarding the decline in accounting
graduates and its impact on the industry supply shortage. The research survey found that 83 percent of the
18 participants were concerned with the accounting graduate decline and shortage. Their main concerns
included lack of quality talent, declining work quality, and increasing workloads. Thus, the firms
represented in the survey are outsourcing and investing in artificial intelligence (AI). While some
perceive the shortage as cyclical, others highlight generational trends. Generational values, high barriers
to entry, and the profession’s poor image factor into the decline of accounting graduates. The 17 percent
of respondents who were unconcerned about the decline or shortage highlighted job security and positive
trends in technology. However, they recognized reliance on technology could devalue education and
increased sanctions on Certified Public Accounts (CPAs) could dissuade staff from pursuing higher-level
positions. Industry-wide efforts are needed to reshape the image of accounting to reclaim its status as a
coveted profession.
Nunan, D. (2003). The impact of English as a global language on educational policies and practices in the
Asia-Pacific region. TESOL Quarterly, 37(4), 589. https://doi.org/10.2307/3588214

Addressing the shortage of accountants: Suggestions for academe and the profession
Abstract
The popular and academic press reports recent and future major decreases in accounting enrollment to the
detriment to accounting faculty and the firms that hire our students. Based upon a major review of the
literature and our own experiences, we discuss this matter in depth and suggest means to reverse these
trends. For example, we suggest that the CPA profession stress that (1) while earning lower starting
salaries, experienced accountants often earn significantly higher salaries than other business majors; and
(2) accountants can more likely own equity in their employers’ businesses as compared to other,
competitive business fields.
We also discuss how the (1) Generation gap’s (e.g., members of Generations X and Z) viewpoints
compare to baby boomers; (2) major trends in the gig economy affect this shortage; (3) some affects of
technology; and (4) need for personal growth affects this shortage—and how the profession can capitalize
on these trends.
Our paper should help academe and the profession spur quality students to major in accounting and help
improve the latter group attract and retain new accounting majors. After all, new, competent accounting
majors form the basis for our future, if not our survival.
Reinstein, A., & Kaszak, S. E. (2024). Addressing the shortage of accountants: Suggestions for academe
and the profession. Journal of Accounting Education, 66, 100888.
https://doi.org/10.1016/j.jaccedu.2024.100888
ACCOUNTING FACULTY SHORTAGE AMONG HIGHER EDUCATION INSTITUTIONS
WITHIN QUEZON PROVINCE
In 2010, a resolution was filed to address the shortage of accountants in the Philippines. However, the
accounting industry is still facing challenges, especially with "The Great Resignation" due to the global
COVID-19 crisis. This study aimed to identify the factors contributing to the accounting faculty shortage
in Quezon Province and its effects on accounting faculty members. The researchers conducted a survey
using a self-made questionnaire and purposive sampling to select the primary respondents - the
accounting faculty members experiencing faculty shortage. However, aside from them, the Head of the
HR Department and the Dean of the College of Accountancy were also surveyed to substantiate the
answers of the primary respondents. Results reveal that salary and workload are both factors contributing
to the shortage, while the work environment is not. Consequently, the accounting faculty shortage is
causing increased levels of stress, heavier workload, and high turnover intentions among accounting
faculty members. This study also found that there were no significant differences in the factors that
contribute to the accounting faculty shortage in terms of salary and work environment when the
respondents are grouped according to age, sex, and employment status. Differences in workload were
significant among respondents grouped by employment status, but not by age and gender. There are also
no significant differences in the direct effects of accounting faculty shortage on the job-related strain of
accounting faculty members in terms of stress level, workload, and turnover intention based on age, sex,
and employment status. Therefore, the respondents reported experiencing similar levels of stress,
workload, and turnover intentions, regardless of their age, sex, or employment status.

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