By: Gary Hirsh, CPA, CFP®
If you are a reader of the Wall Street Journal, you may have seen three articles in the past nine months that addressed the issue of a significant shortage of accountants. The titles of these articles were:
Job Security Isn’t Enough to Keep Many Accountants from Quitting (September 22, 2023)
Tax Season is Coming, and These Firms Can’t Find Enough Accountants in the U.S. (January 18, 2023)
Why so Many Accountants Are Quitting (December 28, 2022
According to the most recent data from the American Institute of Certified Public Accountants, the number of US students graduating with either a bachelor’s or master’s degree in accounting dropped 7.4% during the 2021–22 academic year from the year before, the largest one-year decline since at least 1994–95.
As Baby Boomers (born in the mid-1940s to 1964) retire, there are not enough professionals to take their place. The New Jersey State Society of CPAs (as of 2022) was comprised of 42.9% Baby Boomers or older, whereas the national workforce is 25. Millennials make up 40% of the national workforce but only 20% of the Society members. Many college students don’t want to work in accounting, even those who majored in it.
Considering the above, what are some of the factors involved in choosing a CPA? The first aspect to address is to understand your needs. People with only wage income reported on Form W-2 along with interest, Dividend, and perhaps some capital gains may choose to DIY and use available software. They may want to try a commercial tax preparer if this is intimidating.
Taxpayers with more advanced needs and certainly those with businesses will likely need a CPA or a practitioner with similar experience. One of the best ways is to ask friends or others for referrals.
If you speak on the phone, remotely, or in person, questions you may consider include:
The types of clients served, amount of experience in a particular area where you believe you need assistance, a specific industry or areas of expertise, other services provided, how fees are charged, and examples of how the CPA assisted clients in the past.
CPAs may specialize in various areas, including accounting, auditing and tax services, state income and sales tax matters, estate planning, divorce settlements, management consulting, information technology, forensics, etc. A firm’s website may lead one to believe that the firm has expertise in all this, which is not likely. Ask for specific examples or industry referrals.
Finally, try to find a practitioner who does not plan on retiring!