The Accounting Apocalypse

Every year there's fewer CPAs... and more businesses that need them.

Remember back when accounting offices were ubiquitous? You'd see "Name1, Name2, and Name3, CPA LPA INC" on signs all over town... times have changed.

Unlike the drawback of other brick and mortar businesses, however, this isn't just about the digitalization of business or standard technological progress.

The facts are clear, CPAs are retiring at a staggering rate. Replacements coming aren't enough, and more aren't coming any time soon.

The Death of a Profession

Unlike other occupations, CPAs didn't all pivot to new workflows and technologically advanced methods. Sure, you don't see web hosts or personal assistants with physical offices much anymore... but those professions are still around. CPAs, in contrast, are dwindling.

It's not that there's a reduced need for the services a CPA offers - quite the opposite in fact. More people are starting more business and the need for diligent business accounting has never been higher. As global communication unleashes small businesses on a larger market, account books and records have never been more complicated.

But that need hasn't created new CPAs.

In fact, the number of accountants entering the workforce is declining at an alarming rate. The American Institute of Certified Public Accountants (AICPA) found in their 2023 study that 7.8% fewer bachelors degrees were issued for accounting in 2022 than 2021. Master's degrees fell 6.4% in the same timeframe.

This is nothing new. The same study found that from 2012 to 2022 total accounting students dropped 16.9%. Fewer new CPAs are entering the workforce, and the problem seems to be accelerating. For this reason, several states and certification boards are considering lowering the standards. Lesser educated CPAs, however, isn't a bullet-proof solution as you might imagine.

Young, talented professionals are simply not choosing to be a CPA anymore. Whether they're heading elsewhere for better pay prospects, less monotony, or more work flexibility, the result is the same.

There are less CPAs, and that has consequences.

CPAs: An Aging Breed

This has led to an older workforce of CPAs. They are often not the most suited to leveraging technology for better work... and they're overwhelmed with all the need for their services.

In 2020, 75% of working CPAs hit retirement age. According to reporting by Inside Public Accounting, the average age of working CPAs has dropped from 53 to 52.2 since then, but that's a small consolation when the problem is still so obvious in that very statistic. Any profession with an average age over 50 is on life support.

Most of these older CPAs got into this industry when business was indistinguishable from what it's become today. A 55-year-old accountant who has been diligently filling out ledger paper and Quickbooks for decades doesn't have the motivation to innovate or change. They succeeded in the world of the past, and the need for them is so great they can finish out their careers without changing a thing.

But where does the innovation come from if the influx of new, young CPAs are slowing to a trickle? Who finally starts leveraging tech to make better systems that solve the needs of a growing business community?

The Future of Business Accounting

We've used CPAs badly in the past. Yes, we needed them, but did we really need them for everything?

A CPA is a highly specialized expert in tax, withholdings, and reporting. They like taking your money, but they were never the correct fit to balance your books and transcribe your records.

Accountants exist to verify your records, not maintain them. In an ideal world, a CPA would take completed, detailed books from you and verify they were correct. Then they would take those books and use them to handle taxes, property declarations, depreciation... all the advanced functions of accounting that they are specialized in.

Part of the reason we find ourselves with such a shortage of accountants is that we've buried them in busy work, and it's time to make a better way.

Technological systems to facilitate bookkeeping are nothing new. Most of these systems, however, just present you with a different way to run your ledger and records... not necessarily a better way. There's still tons of data entry, tons of transcription, tons of tedious tasks that get procrastinated, missed, or messed up.

There's a better way. It's time to stop relying on the systems of the 20th century and start building modern infrastructure for modern businesses. With recent advances to AI and automation, streamlined, custom bookkeeping systems aren't only for multinational enterprises now. Every single business has the ability to leverage technology for customized solutions.

Go Beyond Traditional Accounting

At Beyond the Bookkeeping we know that every business needs detailed books and reliable business accounting.

We also know that business CPAs are getting rarer, and the cost of those specialized services is getting higher.

We make custom automation for your exact business situation, letting you leverage technology to make keeping detailed, accurate records easier and cheaper.

We're here to streamline your bookkeeping so we can do more for you at far less expense than a normal business bookkeeper or over-worked CPA firm. We have experienced accountants on staff to verify the accuracy of your books, ensuring you have detailed records whenever they're needed.

This isn't the 20th century anymore. Affordable and custom accounting solutions are within the reach of any company. Develop efficient and sustainable solutions for your business accounting... and seize all the advantages of modern business.

Go beyond traditional bookkeepers and business accountants. Reach out for a free consultation today and see what we could build to make your business better.