ICYMI - CPA's in Short Supply

If you google “CPA Shortage 2022,” you’ll find a plethora of articles about how accounting talent is in short supply….and the Washington Post article below even suggests that the health of capitalism will hinge upon fixing the quantity of accountants.?I have recently joked that sometimes I feel like Daniel Day Lewis in Last of the Mohicans….where have all the CPA’s gone?

As with so many other industries affected by the pandemic, our profession was dramatically impacted. Boomers who were on the verge of retirement threw in the towel, older accountants passed away, younger accountants got burnt out and the rest of us are here trying to make sure our clients still get great service and advice despite the labor shortage.?It’s also worthy to note that the massive tax law changes in 2018 followed by the CARES Act, PPP and EIDL loans, the ERC and now the Inflation Reduction Act have put immense strains on already tired accountants who have been leaned on heavily (and who had to learn on the fly).

Clients truly need to understand what’s happening in our industry and here are some things that should be top of mind:

1.?????You might want to think twice about firing your CPA.?Many firms are at or nearing capacity….l hear that many aren’t taking on new clients.?If the issues you are experiencing are centered around communication, tardy deliverables or other disappointments that aren’t tied to inaccurate work or total lack of advice, take some time to sit down with your CPA to revisit or reset expectations.?Talk through how you can create an engagement plan that will work for both parties.?Make it a conversation, not a confrontation.?CPA’s are incredibly stressed out so genuinely strive towards a mutually beneficial agreement.

2.?????Expect price increases this year with even bigger escalations in the next few tax seasons. Accountants are waking up to the realization that their knowledge of accounting rules and tax law are absolutely critical to a business owner’s success; moreover, the contributions that CPA's make toward helping clients to build wealth warrant higher prices.?On top of that, firms are getting squeezed on wage increases to add capacity, implementing new technology related to automation and cybersecurity, training to upskill their staff and so much more.??Many CPA’s are also not willing to work the long hours, bear the deadliness stress or put up with unreasonable client demands unless it’s going to be financially rewarding.?The days of getting bargain-basement pricing on CPA services are long gone.?

3.?????Exercise your patience muscle and be kind.?CPA’s are trying to help as many clients as possible so it might take a little longer than in the past to get tasks done.?I’m not suggesting that it’s ok for CPA’s to ghost their clients rather that it’s important to set clear communication protocols and be understanding that firm staff are trying to meet a lot of expectations from a lot of people (and that’s just work-related expectations).?Also, don’t blame IRS notices or issues on CPA’s…the IRS is so screwed up!?Not to mention the IRS is horribly backlogged and short-staffed so getting anything handled with them takes forever.

4.?????Be on the lookout for opportunists.?Many bad actors are going to jump into the accounting industry because of high demand and many will be luring in clients with discount prices but will lack the education or experience to do quality work.?Accounting and tax errors can be extremely costly to fix (often 3 to 4 times the cost to do it right the first time) so buyer-beware. ?It’s incredibly important to remember that CPA’s are licensed professionals who are required to abide by a code of professional conduct, obtain annual continuing education, and uphold a fiduciary standard.?

P.S. Photo cred - I received the above “I Y my CPA” bumper sticker from the Texas State Board of Public Accountancy when I was licensed back in 2002 and have held on to it for 20 years.?Save the photo and send to your CPA – it will really make their day.

https://fortune.com/2022/11/10/accountant-shortage-struggling-hire-cpa/

https://www.washingtonpost.com/business/the-accountant-shortage-threatens-capitalisms-future/2022/11/01/3e760160-59ab-11ed-bc40-b5a130f95ee7_story.html

The MB Group, LLC