The accounting talent shortage is forcing CFOs to be more strategic and innovative to secure talent and ensure their accounting practices remain efficient and effective.

The accounting industry is grappling with a talent shortage as fewer young professionals are attracted to careers in public accounting compared to opportunities in technology and other sectors. This generational shift is driven by perceptions that public accounting demands grueling work hours with little work-life balance on the path to partnership, delayed career advancement and insufficient rewards early in one’s career. In contrast, young professionals view jobs in technology and emerging fields as more lucrative, dynamic, flexible and fulfilling.

To address this mounting talent crisis, the accounting industry must reimagine the traditional career path and workplace culture in public accounting firms. This requires developing more progressive policies around work hours, remote work flexibility, career acceleration opportunities and competitive compensation and benefits at junior levels. Firms must also enhance their employer branding to recast public accounting as a diverse, dynamic career path that provides meaningful work, strong cultures and professional growth from day one.

Without taking bold steps to modernize and reposition the profession, accounting firms risk losing top emerging talent to more appealing opportunities in technology and other industries. Implementing best practices around work-life harmony, career development and workplace culture is critical for recruiting and retaining the next generation of accounting professionals.

Why young talent is skipping the accounting profession

Storage container manufacturer Tupperware revealed at the end of March that its annual report would be late because it didn’t have enough accountants — and it isn’t alone. Due to the shortage of accountants, about 70 publicly traded organizations have had delays in releasing their earnings reporting. This number marks a 40% jump in report postponements from last year. There just aren’t enough accountants to go around.

This shortage is indicative of a shift in career preferences. Accounting is known for its long hours, especially during the infamous “busy season,” and more and more young professionals are focused on achieving a work-life equilibrium that allows them to live their whole lives, both personally and professionally.

Furthermore, accounting is seen as a profession where advancement is slow. Sure, a new hire could become a partner someday, but what about all the time before that? Young people want opportunities for career advancement that don’t take decades. Additionally, the perception of an accounting career as an analog-first, technology-averse profession persists.

The tech sector has a dynamic reputation that draws young people to the field. The industry’s growth velocity typically results in faster career advancement than in a traditional accounting career. Many tech companies also prioritize facilitating harmony between employees’ work lives and professional lives, and this flexibility is attractive.

Reimagining the accounting experience

To address this aversion to the accounting profession, leaders need to revamp the traditional path of accounting careers to better accommodate the desires and expectations of young professionals. The talent shortage forces CFOs to rethink their approach to both hiring and working with audit firms. They need to be more strategic and innovative to secure the talent they need and ensure their accounting practices remain efficient and effective. Here are four ideas that reinvent what an accounting career can look like:

1. Invest in your people

A recent Gartner survey revealed that the top attraction driver for finance employees was compensation. Consider implementing creative compensation packages that go beyond a traditional salary, especially early in your employees’ careers. For example, you could offer equity at the start of their employment. Empowering your employees to operate like owners through equity shows that your organization is committed to its people.

2. Embrace flexibility

Workplace flexibility is now essential to attract and retain top talent — in fact, work-life balance was the number two attraction driver from the Gartner survey. By offering flexible work arrangements, employees can catch their child’s winning shot at their basketball game without sacrificing work commitments. It’s all about fostering a work environment that supports employees’ whole lives, both professional and personal.

3. Chart a clear path to success with ongoing learning

Structured career development programs and other modalities of continuous learning, like micro-learning or in-person classes, can help your employees not only sharpen the skills they need now but also develop skills they may need in the future to serve your clients. This type of learning goes beyond just continuing education — this well-rounded approach helps develop soft skills as well, accelerating the industry’s transformation from a training-focused sector to a learning-focused one. Your people are your most valuable asset, and in a human capital business, investing in their skills development will help keep them engaged, happy and focused on their goals.

4. Empower your people with technology

Investments in cutting-edge technology can enhance efficiency, provide learning opportunities and improve the overall work experience while simultaneously future-proofing your business. Organizations that fail to invest in new tools and systems will lag behind those firms that do. Technology is also a talent magnet — today’s best employees crave opportunities to learn and grow alongside innovative, helpful technology.

If the accounting industry wants to avoid becoming the Tupperware of the corporate world — outdated and understaffed — it must embrace radical change. Transforming from a profession seen as analog and inflexible into one that rivals the tech industry in dynamism and appeal is not just a strategic move; it’s a survival imperative. The time to turn the change-resistant reputation of CPAs on its head is now before the talent pool evaporates entirely.