The Future of Accounting With the Great Resignation
What does the future of accounting with Great Resignation look like? If your present accountant follows the trend of others in the aftermath of the Great Resignation, you might be looking for a new one next tax season. Most components of the COVID-19 epidemic have been effectively weathered by accounting companies so far.
On the opposite side, though, lies a fresh challenge: The Great Resignation. This enormous exodus, which has been felt both inside and beyond the accounting world, has seen experts at all stages of their careers abruptly leave. They move on to brighter pastures, leaving firm management scrambling.
A similar scenario has historically occurred in the accounting sector during the so-called “busy season”. It’s a period from about January to April. In that time, accountants’ workloads inflate in the face of approaching yearly tax deadlines.
Because workers will depart before the next busy season begins, some accounting experts refer to the fourth quarter of the calendar year as the “quitting period.”
Accounting and tax professionals have an unspoken pact not to leave during the hectic season.
Why Is Accounting Industry Being Hit?
These changes have not spared the accounting profession. According to BLS data, the total number of accountants and auditors working in the United States declined by 17% from 2019 (when it peaked) to 2021.
The pandemic began in March 2020, right in the middle of tax season. And because of that, extensions on tax files, as well as the launch of innovative relief programs, have added to accountants’ workload.
People have begun leaving accounting positions in the middle of tax time, which was pretty much unheard of.
If a firm has trouble replacing departing accountants, those who remain must take up the slack. Long work hours, especially during peak season, have some employees desiring a better work-life balance. To avoid staff exhaustion, one employer has even tried removing overtime.
Technology Offers a Lot More
Technology alone will not protect a company from the effects of the Great Resignation. When we examine the data points above and the needs of professional accountants, it does provide a solid basis on which to develop.
During the pandemic, the shift to remote work highlighted how well accountants can work in a remote setting. This means the job can be done anywhere. And even at a specific time when the buyer is there.
What this means is that practice leaders should put in place long-term remote and flexible employment policies and technologies, such as:
- Cloud-based tech
- Collaboration software
- Various modes of communication
- Procedures for a paperless and digital workflow
- Tools for automation
A firm’s processes and team arrangements should be there to boost productivity and sustain collaboration. The workflow and procedures should no longer be built around the actual location. Redesign processes so that employees may give their best work. And be as productive at home as they are in the office.
Why Is It Important to Understanding Cultural Differences?
Companies must be aware of the generational disparities between Millennials and Gen Zs. They are becoming a greater workforce component (particularly at the entry and mid-career stages) as Baby Boomers retire.
In general, newer generations appear to be less passionate about a corporation than their forefathers. Businesses with a truly diverse and inclusive culture are likely to attract and keep the greatest personnel, as well as represent the expectations of their customers.
Employees who feel accepted and valued for who they are, regardless of gender, religion, or racial origin, are more satisfied. Happy employees are more effective and less prone to depart early.
Effects of the Great Resignation on Accounting
While the number of people quitting their employment may alter as a result of the Great Resignation, some of the workplace cultures that resulted are likely to remain.
Flexible work arrangements and the opportunity to work remotely will almost become standard for employees in the future. And organizations that can meet the exceptions appear to have the best chance of surviving.
The Great Resignation may not have as much of an impact on the accounting area as it does on other industries. However, if accounting firms want to be competitive in an environment where the leverage is more on the side of the worker, they must keep up. Current workplace trends and helping employees can make the company flourish.
This can all look scary, so here at Your Part Time Accountant, we want to ensure you have an easy experience.
Contact us today and let professionals deal with everything!