Why We Leave
What do you do when an industry you love doesn’t seem to love you back?
On its face, accounting should be a slam dunk industry for those with the proper mindset and qualifications. It requires lots of specialized training and experience, and enterprises will never outgrow the need for people who can navigate the compliance-related frameworks and rules.
Yet, the stories of heartbreak and frustration are all-too-plentiful across Reddit and other online channels.
Ben Wann, the blogger behind Accountingprofessor.org, crystallized many of these in a blog article entitled “I Love Accounting. So I Had to Leave”:
“Organizations are onto the whole “get paid for the work you were hired to do” racket, so each year, the pressure increases. Stretch (see exhaustive) targets are tied to bonuses dangled like carrots. To even be considered for a promotion, you must go above and beyond what you were hired to do. Forced rankings declare good people ’losers’ and hint that maybe you should go elsewhere in the very near future.”
These complications ultimately led him to strike out from large enterprises to become an independent accounting thought leader. As many accountants share his plight, the industry is finally coming to terms with the need for genuine reform focused on replenishing the dwindling ranks of accounting talent.
Upcoming Reforms in 2025: Lowering Barriers to Entry
To address the exodus of talent fueling the shortage, the accounting industry is set to implement a series of reforms in 2025 aimed at lowering barriers to entry. These include reducing the time and cost required to complete an accounting degree, expanding access for underrepresented groups, and increasing outreach to grade school students to spark early interest in the profession.
Further development of what they’re calling “solution ideas” falls into six distinct categories for new talent:
- Telling a more compelling story about careers in accounting
- Creating a more engaging college experience for accounting majors and potential accounting majors
- Reducing the time and cost of education
- Growing support for CPA exam candidates
- Identifying ways to attract and retain more underrepresented minorities and groups to careers in accounting
- Transforming the cultures and business models of employers to enhance the experience of the first five years of employment
According to the NPAG report, “Today’s – and especially tomorrow’s – labor market requires innovation, and what we’ve done in the past is unlikely to move the needle in the future.”
These reforms are seen as critical to ensuring a steady stream of new talent enters the accounting profession, thereby stabilizing the workforce and injecting fresh perspectives into the industry.
But what about the individuals already in the industry?
The Role of Advanced Tools and Automation in Retaining Talent
One of the key strategies for retaining talent in the accounting industry is the adoption of advanced tools and automation. Companies must recognize that a crucial part of incentivizing accounting staff to engage in higher-value projects is to invest in technologies that automate repetitive and mundane tasks.
By leveraging advanced tools, firms can free up their accounting professionals to focus on more strategic and fulfilling work. This not only enhances job satisfaction but also helps in retaining talented individuals who might otherwise leave the profession due to burnout or lack of career progression opportunities.
Transforming Lease Accounting: Opportunities with ASC 842
Ernst & Young offer a perfect example of enterprises prioritizing advanced systems and platforms to mitigate the effects of the ongoing accounting talent shortage. They’ve publicly confirmed their plans to allocate $1 billion over the next three years to both boost compensation for accountants early in their careers and to develop and utilize AI-powered audit and tax software to make their jobs easier and more fulfilling.
Lease accountants will particularly benefit from the investment in technology as they navigate an ASC 842-driven landscape and the detailed compliance steps it demands.
The introduction of ASC 842 has created significant opportunities for accounting teams, as it requires more detailed reporting and data analysis, which allows accounting professionals to provide greater value to their organizations through enhanced financial insights.
This transformation in lease accounting presents a chance for accountants to engage in more strategic roles within their companies. By leveraging the detailed analytics required by ASC 842, accountants can better support business decisions, thereby elevating their role from traditional bookkeeping to strategic advisory.
Key Performance Indicators: Measuring Success in the Industry
To determine whether their proposed reforms are effective, several Key Performance Indicators (KPIs) have been explicitly outlined by the NPAG to measure the success of the upcoming reforms. These KPIs include the increase in the number of students selecting accounting as a major, the retention rate of accounting professionals within firms and finance departments, and the overall satisfaction of accountants still in the field.
Tracking these KPIs will provide valuable insights into the effectiveness of the reforms and highlight areas where additional efforts may be needed. Ensuring that both new and existing talent are well-supported is crucial for addressing the current shortage and sustaining the industry in the long term.
To learn more about this and other important 2025 lease accounting trends, grab CoStar Real Estate Manager’s 2025 Lease Accounting Outlook.