Accounting firms have built up a whole arsenal of strategies to cope with the shortage of new talent, but staffing issues are still top of mind for firm leaders.
When asked to identify the biggest issues they see facing the accounting profession, senior executives from Accounting Today's
The profession as a whole has made nationwide efforts to make accounting more appealing and accessible to young professionals, which has resulted in a slight uptick in new enrollments. In recent years, for instance, many states have been adopting legislation to create alternative pathways to licensure beyond the 150 credit-hour rule. Still, firms must compete — not just with other accounting firms, but with other financial services providers and the technology sector — to recruit, retain and develop talent.
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Tulsa, Oklahoma-based HoganTaylor's CEO Randy Nail summarized the issue: "Capacity constraints driven by persistent talent shortages and declining accounting graduates — even as firms expect to hire at similar or higher levels — [are] creating structural pressure on delivery models."
Tim Brackney, CEO of Springline Advisory Group, said his firm has tackled this issue by "building a national talent acquisition function, embracing hybrid and remote work, and building learning and development for up-and-coming talent that is a gateway to equity."
Recruiting, retention and development
The accounting profession has been grappling with an ongoing talent shortage for a decade or more. Not enough college students are studying accounting, fewer go on to become CPAs, and even fewer are sticking around long enough to become partners.
"The traditional talent model is no longer sufficient," said Paul Bailey, chief growth officer at CLA. "Firms must expand access, reimagine career pathways, and intentionally develop future leaders earlier and more broadly. At scale, succession depth becomes just as critical as hiring, particularly as experienced leaders retire and new roles emerge. Firms that succeed will be those that actively shape their workforce, invest continuously in learning, and prepare leaders who can navigate disruption, complexity, and change, ensuring continuity, resilience, and long-term growth."
Compensation is another lever firms must pull to recruit talent, as jobs in business, finance and technology offer higher pay to junior-level employees, whereas entry-level accountant salaries historically have lagged behind.
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"As leaders, we must compete not only on compensation, but on opportunity," said Chad Anschuetz, CEO of Troy, Michigan-based Doeren Mayhew Advisors. "By offering competitive pay, meaningful equity participation, clear career pathways, continuous development, and a culture that values flexibility, purpose and collaboration, we are positioning our firm to attract the next generation of leaders and sustain long-term success."
Louis Grassi, CEO at Grassi in New York City, added, "With a declining number of accounting graduates and increased competition for experienced professionals, firms must focus on building a sustainable pipeline of future leaders. Prioritizing employee engagement, work-life balance, and clear career development paths will be critical for attracting and retaining top talent."
Retaining talent and talent development go hand-in-hand. More than ever, young people are looking to add new skills to their toolbelt to remain competitive and employable, for mentorship from senior employees, and to be satisfied mentally and emotionally in their work.
"It is imperative that professional service firms develop people earlier and more intently during their careers to solve complex problems for our clients," said Thomas Angelo, CEO at Hill, Barth & King in Canfield, Ohio. "In addition, as we do develop these team members, it is even more important that we nurture their careers and give them opportunities to grow and develop so that we can retain them."
"The profession is evolving rapidly and firms must attract, develop and retain professionals while redefining roles and career paths," said Kevin Keane, CEO at New York City-based PKF O'Connor Davies. "That requires investment in training, flexibility in how work is done and a clear value proposition for why professionals should build long-term careers at a firm like ours."
Other firms are taking a slightly different approach: SC&H Group in Hunt Valley, Maryland, for instance, is leveraging its employer stock ownership plan to attract talent.
"Competition for strong accounting, advisory, and technology professionals remains intense," said chief marketing officer Colin Kendall. "Firms must offer more than competitive compensation — clear career paths, meaningful work, flexibility, and strong leadership all matter. For SC&H, long-term employee ownership also plays a meaningful role. As a 100% ESOP firm since 2016, we are able to offer a true ownership mindset that encourages long-term commitment, collaboration, and accountability, helping us attract and retain professionals who are invested in the firm's future."
Similarly, Indianapolis-based Katz, Sapper & Miller has operated under an ESOP for more than 20 years and is confident in its course.
Jamie Ellis, the firm's chief operating officer, said that while private equity throws "big money at firms to innovate, we feel our ESOP structure is well-suited to grow organically and by acquiring other firms, thus competing with PE-backed firms."
Finally, there's the matter of specialization in the age of rapid technological advancement. Automation and AI are taking over the rote tasks that entry-level accountants used to perform, and thus forcing them to upskill faster and interact with clients sooner.
"What will truly set firms apart as AI and technology become more prevalent will be their ability to take data and provide insights, support, and advice to businesses and individuals," said Reyes Florez, CEO at Holladay, Utah-based Platform Accounting Group. "As an industry and firm, it will be critical to continue honing and developing the skills, reimagining and investing in new ways to develop talent and enable our people to go beyond the data to tell a story and guide decision-making for their clients."
"We pride ourselves on being large enough to offer diverse career paths in specialized service areas, yet small enough to sustain personal connections and a collaborative culture," said Ed Monborne, CEO at RKL. "Finding the right people to bolster and contribute to that firm culture is a top priority. For that reason, we have robust hiring practices, a talent acquisition team and a supportive culture to ensure an exceptional experience for both our team and our clients."
Avani Desai, CEO at Schellman in Tampa, Florida, added, "Another critical issue is access to talent in highly specialized areas, such as AI algorithm audits and emerging technology assurance. While competition for this talent is intense, we are committed to developing these capabilities internally through training and career investment."
Succession planning
Succession planning is another critical issue for leaders. As Baby Boomers prepare for retirement en masse, few young professionals are lining up to take their place. The traditional path to partner — wherein accountants are promised major payouts after decades of climbing the ranks — is no longer appealing to a generation that prioritizes wellbeing and work-life balance. But it's not just a matter of who will run the firm next.
"As firms grow in size and complexity, leadership succession extends beyond replacing retiring shareholders," said Ryan Cook, managing shareholder at Omaha, Nebraska-based Lutz. "The critical challenge is transferring institutional knowledge, client relationships, and decision-making responsibility in a way that preserves confidence, culture, and strategic momentum. Firms must develop future leaders early, clarify governance and accountability, and ensure leadership transitions are visible, intentional, and well-supported for both clients and teams."
"Retaining qualified professionals and building a succession pipeline is our top priority as competition for talent intensifies, said Nick Lew Ton, partner and chief growth officer at San Ramon, California-based Sensiba. "We're investing in mentorship and clear career pathways to ensure institutional knowledge transfers and future leaders are prepared."
"When partners retire without adequate succession, firms face knowledge loss and client relationship disruption," Springline's Brackney said. "This is a key driver for our program to provide equity below the level of partner; we think it is paramount for the next generation of leaders to develop an enterprise mindset and ownership mentality earlier in their careers."
He continued, "These three reinforce each other: Technical debt makes firms less attractive to tech-savvy talent, talent shortages prevent firms from modernizing systems, and both make succession planning harder because there's little bench strength to promote from within."
Preserving firm culture
Preserving culture is another top concern for firm leaders. That issue includes the debate of working from home versus returning to office.
"While more firms are embracing remote work and reducing their brick-and-mortar presence, we continue investing in real estate and building office space," said Travis Horton, partner at HHM CPAs in Chattanooga, Tennessee. "Our service culture is rooted in relationships, accessibility, and face-to-face meetings. While this approach can put us at a disadvantage in today's recruitment environment, we believe an on-site team model ensures quality work, timely client service, and a collaborative approach to problem-solving."
And as the speed of technology adoption increases, firms need to balance digitization with the human side of the business, both internally and with clients.
Russell Shinskey, managing partner at Anchin, based in New York City, commented, "Increased efficiency will ultimately shift client expectations around pricing, requiring firms to evolve their service models and strengthen their value propositions so that price does not become the primary driver in provider selection."
"We have learned there is a thin line between leveraging technology and losing the human touch that is our firm's trademark," HHM's Horton said. "Importantly, we do not believe in forcing clients into a one-size-fits-all model. We tailor each client's experience to their individual preference."
"Regardless of the tools used, our clients rely on us to answer the phone when they call, to be available when they stop by, and to provide real people who know them — not an automated menu of options," he continued. "We will embrace modern technology that makes us a better firm, but we will never choose innovation over delivering tax and accounting services with a true human touch."
