As millions of baby boomer accountants edge closer to retirement, the accounting industry is facing a potential talent shortage crisis. Despite being perceived as one of America’s most monotonous professions, in danger of becoming obsolete, a new wave of enthusiasm from Generation Z is breathing fresh life into the field by recognizing the lucrative six-figure career opportunities—and gaining valuable experience through volunteering to help individuals with tax filing, free of charge.
With America's tax system becoming increasingly complex, the demand for accountants is escalating. However, this demand is not being adequately met due to various factors like leadership turnover within the IRS, policy disputes, and burnout, leading to more professionals exiting the industry when their expertise is most needed.
Already, approximately 340,000 accountants have left their positions in the past five years, and projections indicate that 75% of the remaining workforce is expected to retire within the next decade. Despite being tagged as one of the least captivating professions, according to a recent study accounting ranks as the second most stereotyped job for being dull.
The new generation, Gen Z, is stepping in to fill the impending void. These young accountants-to-be are embracing the field not as a mundane task but as a means to positively impact people’s lives.
One such initiative making a notable impact is the Volunteer Income Tax Assistance cVITAc program initiated by the IRS over 50 years ago at California State University, Northridge. Students from various universities, including over 280 at CSUN alone, have worked tirelessly to assist low-income taxpayers in claiming tax refunds and credits worth millions of dollars annually—crucial savings for individuals grappling with financial challenges.
The enthusiasm shown by budding accountants like Alana Kelley and Tristan Klascius in aiding individuals in need demonstrates the shift in perceptions regarding the profession. Through their efforts, they have managed to secure substantial tax refunds for families who rely on this financial boost.
The VITA programs not only benefit low-income taxpayers but also provide invaluable practical experience to student volunteers who deal with intricate tax issues. This hands-on experience equips them with the skills and confidence necessary to excel in the industry upon graduation, potentially landing lucrative jobs in the realm of accounting.
Despite the prevailing stereotype, the field of accounting offers attractive compensation, with an average annual salary of $93,000 for accountants and potentially up to $200,000 for Certified Public Accountants cCPAsc, adding more allure to the profession for younger individuals seeking financial stability.
However, garnering student interest in accounting programs remains a challenge, with statistics showing fluctuations in the number of degrees awarded in the field over the years. This decline in enrollment has been further exacerbated by the impacts of the pandemic.
Logan Steele, an accounting professor, notes the outdated perceptions many young people hold regarding the role of accountants, emphasizing the shift towards strategic decision-making and automation of routine tasks through technology like AI. The evolving landscape of the profession is gradually gaining recognition among students with improved job prospects and historic high salaries for graduates in the field.
As the industry acknowledges the need to adapt to attract and retain talent, efforts are underway to highlight the diverse opportunities within accounting while simplifying the path to becoming a CPA. The increasing job security offered by accounting roles may align perfectly with the preferences of Gen Z, potentially fueling a surge in interest towards this promising career trajectory.
In conclusion, the evolving narrative around accounting, propelled by the dedication of Gen Z volunteers and the recognition of substantial financial rewards, stands as a testament to the resilience and adaptability of the profession in attracting the next generation of accountants. Their commitment to making a difference in people’s lives through tax assistance programs reflects a promising future for the industry as it continues to evolve and remain indispensable in the realm of financial management.