A graphic depicting the top issues faced by CPA firms in 2024, highlighting the challenge of finding qualified staff across various firm sizes.

The Ongoing Talent Hunt for CPA Firms in 2024

Aug 08, 2024

By Acta International

As we navigate through 2024, CPA firms face a diverse set of challenges, varying significantly based on their size. The latest survey results from the AICPA's firm practice management section highlight these concerns, offering a detailed look into the top issues faced by firms. Understanding and addressing these issues is crucial for maintaining efficiency and delivering top-notch services.

Key Findings from the 2024 Survey

Finding Qualified Staff: The most pressing concern across nearly all firm sizes, except sole practitioners, is finding qualified staff. This challenge is particularly acute for firms with 2-21+ professionals. The two largest firm categories (11-20 professionals and 21+ professionals) also listed retaining qualified staff as a top issue, reflecting the broader challenge of maintaining a skilled workforce.
Keeping Up with Tax Laws: For sole practitioners, the primary concern is keeping up with the changes and complexity of tax laws. This issue also ranks highly for firms with 10 or fewer professionals, who often lack the research resources of larger firms.
Challenges with the IRS: Another significant concern is the challenges when working with the IRS. This issue ranks in the top four for most firm categories, reflecting ongoing difficulties despite the IRS returning to pre-pandemic service levels.
Technology Integration: Interestingly, technology-related issues are a top concern at both ends of the firm size spectrum. Sole practitioners and the largest firms both highlighted the importance of keeping up with changes in technology and managing associated costs, as well as leveraging technology to enhance client service.
Developing Leadership: Small to midsize firms are particularly focused on developing the next generation of firm leaders, with this issue ranking in the top five for firms with 6-20 professionals. This reflects the need for a strategic approach to leadership development to ensure long-term success.

This blog post, including the image, references information from journalofaccountancy.com.

Solutions and Strategies:

For Sole Practitioners:

Continuous Education: Engage in regular professional development to stay updated with tax law changes.
IRS Navigation: Develop a strong understanding of IRS processes and leverage IRS liaison support.
Cybersecurity: Invest in robust cybersecurity measures to protect client data.
Technology: Adopt client management software and automation tools to enhance service delivery.

For Firms with 2-10 Professionals:

Recruitment Strategies: Implement effective recruitment strategies, including competitive salaries and professional development opportunities.
Efficient Scheduling: Use project management software to manage workloads and deadlines effectively.
Leadership Development: Establish mentorship and leadership training programs for mid-level professionals.
Tech Upgrades: Regularly update software and systems to comply with the latest tax regulations and technological advancements.
Offshore Staffing: Utilize offshore staffing solutions to fill talent gaps and ensure a steady workflow.

For Firms with 11-20 Professionals:

Retention Strategies: Offer career progression opportunities, competitive benefits, and a positive work environment.
IRS Collaboration: Build strong relationships with IRS representatives to streamline processes.
Seasonal Workforce Management: Hire temporary staff during peak seasons to manage workloads effectively.
Offshore Staffing: Leverage offshore staffing to supplement your team and address staffing shortages.

For Firms with 21+ Professionals:

HR Policies: Develop robust HR policies that include clear career paths, regular performance reviews, and employee engagement activities.
Advanced Technology: Invest in advanced technology and software to streamline operations and improve client service.
Continuous Improvement: Encourage a culture of continuous improvement through regular feedback and innovation.
Offshore Staffing: Incorporate offshore staffing solutions to enhance team capabilities and maintain efficiency during high-demand periods.

For more information about how offshore staffing can help your firm overcome talent challenges, contact us or schedule a meeting today.

Conclusion

The 2024 survey highlights the varying challenges faced by CPA firms of different sizes, from staffing and IRS issues to technology integration and leadership development. By implementing strategic solutions tailored to their specific needs, CPA firms can overcome these challenges and thrive in the competitive landscape of 2024. Continuous education, effective use of technology, strategic talent management, and strong leadership development are key to addressing these top issues and ensuring long-term success.

FAQs

The top challenges include finding qualified staff, keeping up with changes in tax laws, dealing with the IRS, and integrating new technologies.

Offshore staffing can help CPA firms by providing access to a larger talent pool, reducing costs, and maintaining steady workflow during peak periods.

Effective strategies include offering career progression opportunities, competitive benefits, a positive work environment, and continuous professional development.

Regular professional development, investing in updated software and systems, and leveraging technology to enhance client service can help firms stay current.

Establishing mentorship and leadership training programs, providing clear career paths, and encouraging continuous improvement through regular feedback are key strategies.

About The Author

Acta International

Offshore Staffing Solutions

ACTA International is a leading provider of offshore staffing solutions for CPA and accounting firms. We help Small and Mid-sized firms save time, reduce costs, and increase efficiency by offshoring certain tasks and processes to our highly skilled and experienced team in India.