Staff shortages and regulatory changes challenge US and Canadian accounting industries
The US accounting industry is facing huge challenges amid heightened merger and acquisition (M&A) activity, a persistent skills deficit, and evolving regulatory environments. North of the border, Canada also finds itself struggling with staff shortages and an increasingly complex tax system.
USA
Demand for accounting services in the United States is high, but a shortage of skilled professionals means that firms must focus on developing their staff's skills to offer more valuable services. This shortage puts pressure on firms to maintain competitive fees while struggling to find the right talent for clients seeking additional services.
“While there is still strong demand for accountancy services in the US, and new areas are opening up in the form of ESG services, the ongoing recruitment crisis is putting extreme pressure on current employees,” says Che Golden at the IAB.
Robert Hoberman of member firm Hoberman & Lesser CPAs, LLP in New York, emphasizes the challenge of aligning recruitment needs with candidate preferences, particularly regarding remote work.
Robert Hoberman
Hoberman & Lesser CPAs
“I find more and more candidates want remote working as standard, whereas our firm really needs people to be office-based five days a week.
"The ease with which our staff can get new jobs in accounting or related fields makes it challenging to retain them. Also, the mindset among the younger generation is that the more jobs they have, the more they feel that they are valuable.”
Canada
“In 2022, the Canadian accounting industry was stretched to its limit. Demand for accounting services was at an all-time high, yet there were few staff to meet the demand as the skills shortage created massive problems. Apart from wage inflation cooling, none of these problems have gone away, with the added burden of an increasingly complex tax system, a stagnating economy and a government push to open new markets such as ESG, with no new accountants to meet the demand," says the IAB.
Frank Fazzari, partner at member firm Fazzari and Partners LLP in the Greater Toronto Area, comments:
Frank Fazzari
Fazzari and Partners LLP
“The business environment is very healthy other than it is getting harder to sell practices. Fee increases have slowed. There is no fee pressures given that it is so hard to find accountants to take on new work.
Demand is very good, but special work has slowed down. Fees are stable and we are hesitant to give big increases this year.”
Canada over the past few years has released quite a lot of new tax legislation, making the system more complicated and restricted. While firms in other countries have seen a number of new growth areas, tax dominates in Canada. Frank adds:
“Our priorities are tax, tax and tax. Compliance is more difficult and requires more of our time - good for accountants who are prepared and can provide that service.”
ESG has become a big focus for the Canadian government over the last year, opening a new market for local accounting firms and climate investment has become a matter of urgency for Canada.
For a more in depth look at what’s happening in both the US and Canada, members can click here read the full article in the March edition of the IAB, (login to the MGI Worldwide member portal will be required).
For more information about our contributing member firms visit Hoberman & Lesser CPAs, LLP's website or profile page and Fazzari and Partners LLP's website or profile page
MGI Worldwide, is a top 20 ranked global accounting network and association with over 8,000 professionals, accountants and tax experts in some 400 locations in almost 100 countries around the world.