Recruiting Among Accounting Firms Remains Highly Competitive
CPA firms are thriving, despite the economic downturn. A large majority of CPA firms reported two years of continuing strong growth, according to the 2008 National Management of Accounting Practice survey by the American Institute of Certified Public Accountants (AICPA) and the Texas Society of Certified Public Accountants. “CPA firms continue to do well,” said James C. Metzler, CPA, AICPA Vice President - small firm interests. “Clients go to CPAs to help them weather a troubled economy, and banks may seek greater assurance from practitioners about the companies with which they do business.”
Accounting firms are in growing demand to assist companies navigating the challenges and opportunities that the current financial environment creates. Accounting and finance executives also continue to be confronted by the increasing complexities of changing tax laws and regulations, including the push for International Financial Reporting Standards (IFRS). Amid the trend, hiring qualified professionals remains the most critical concern for U.S. firms, according to the AICPA. Executive search firm, A. E. Feldman, reports that firms are showing strong interest in professionals who can help their companies reduce inefficiencies and enhance profitability. Those who are familiar with IFRS also are marketable. The positions most in demand include staff and senior accountants and credit and collections specialists. Current opportunities include, tax manager jobs, audit jobs, international tax jobs, and business valuation jobs.
In the AICPA study released on November 17th, the vast majority, 75%, of the 2,722 CPA firms surveyed reported growth of up to 19% over the past two years - a significant 40% increase from the previous 2006 survey. The study also shows that average net client fees per partner rose 10% to $664,847. The AICPA notes, however the ongoing financial crisis will undoubtedly change the marketplace conditions facing CPAs.
“Particularly in a period of economic uncertainty, practitioners may increasingly find themselves facing more fee competition from other firms and pressure from clients. Firms need to consider these things in their strategic planning,” Metzler said.
Turnover on the Decline
Fewer firms are reporting turnover, according to the AICPA study. In fact, 31% said they had lost professionals in fiscal 2007 – a drop of nearly 15% from the previous survey. Quality of life issues are one reason for the trend. “We’ve found that more and more small firms are offering greater work-life flexibility, which persuades more practitioners to remain at their firms,” said Metzler.
Specialization, Recruiting Key to Continued Growth
Accounting firms plan to continue growing through client specialization, joining networks, effectively leveraging employee and client knowledge, as well as hiring and retaining talent, according to a nationwide CCH survey. The study shows however, that recruitment also remains one of their top challenges.
The demands on the accounting profession have changed in unexpected ways in recent years, according to CCH. Specifically, increasing regulatory complexity, the need for specialization, the globalization of businesses and shifting demographic are complicating matters for a number of firms. Compounding these challenges is the economic downtown which CCH says will challenge some firms, but also bring new opportunities to others.
Looking Ahead…
The CCH survey concludes there are five key trends which will emerge in the accounting profession over the next three years:
- The need for continued growth is driving greater client specialization and firm alliances to expand and enhance client service. The CCH Survey found that 50% of firms report that specialization is important to their future growth, and 66% of firms report that their specialized services are growing.
- Increased efficiency and productivity needs require the accelerated adoption of paperless workflows and technology. The majority of firms, 64%, believe paperless processes are critical to their firm’s future success, and 62% say that their use of paperless solutions will evolve quickly over the next 12 months, according to the survey.
- Staffing challenges and increased emphasis on collaborative culture compels the adoption of knowledge management practices and tools.
- Demographics and cross-generational demands are requiring firms to become increasingly flexible and creative to address staffing issues. The majority of firms, 70%, allowing more flexible full-time work schedules. These firms report the biggest benefits of a mobile workforce increased productivity, enhanced life/work balance for staff, improved client service, and improved ability to attract and retain talent.
- Meeting client, firm and employee needs requires anytime, anywhere access to information and knowledge.
Are you working in accounting? If you want to grow your career or your company’s bottom line, contact A.E. Feldman’s President, Mitch Feldman, now. Find out more about accounting jobs today!
