How Bots and AI Could Help Accountants Retain Talent and Overcome Staff Shortages
Overcome Staff Shortages: The accounting and bookkeeping profession, once seen as a stable and lucrative career choice, is currently facing significant challenges. Despite being essential to the economy, the industry is grappling with talent shortages, an aging workforce, and a lack of appeal to younger generations. Factors such as work-life balance, starting salaries, rigorous educational requirements, and the sheer volume of work are major hurdles for new entrants. However, emerging technologies like automation and AI present opportunities to address these issues, making the profession more attractive and sustainable in the long run.
The Struggle to Attract Young Talent
The perception of accounting as a tedious and rigid profession is a significant barrier to attracting younger talent. According to a 2023 survey by the Chartered Institute of Management Accountants, only 25% of Gen Z respondents considered accounting an appealing career choice. This is compounded by concerns over work-life balance, with many young professionals prioritising flexibility and quality of life over traditional career paths.
Moreover, starting salaries in accounting, while competitive, often do not match the higher pay found in tech or other finance roles. The financial and time investment required to obtain the necessary qualifications further deters potential candidates. The Association of Chartered Certified Accountants reported that the average time to qualify as a chartered accountant is between three to five years, with the added pressure of passing rigorous exams.
The Impact of High Workloads
Once in the profession, many accountants face high workloads. Particularly during peak periods like tax season. A study by the Institute of Chartered Accountants in England and Wales found that 60% of accountants reported working more than 50 hours per week during peak times. This not only affects work-life balance but also leads to burnout, contributing to high turnover rates and further exacerbating the talent shortage. To most seasoned professionals, that might seem like a typical week and a walk in the park. However, younger generations are not always as forgiving or accepting of such demands.
How Automation and AI Can Address These Challenges
Automation and AI are not just buzzwords; they offer practical solutions to many of the challenges faced by the accounting profession. By starting with at least automating repetitive and time-consuming tasks, these technologies can free up valuable time for accountants, allowing them to focus on more strategic, higher-value activities. And the more interesting and varied work is, the more rewarding and satisfaction is the outcome.
1. Reducing Workload and Burnout
Automated software can handle routine tasks such as data entry, invoice processing, and even aspects of tax preparation. For instance, tools like Xero and QuickBooks have integrated AI to automate reconciliation and expense tracking. Doing so significantly reduces the time spent on these tasks. This can help alleviate the workload during peak periods, thereby reducing burnout and improving retention.
2. Enhancing Accuracy and Compliance
Bot and AI-powered tools can enhance the accuracy of financial transactions and reporting. This ensures greater compliance with ever-changing regulations. Machine learning algorithms can analyse vast amounts of data to identify anomalies and flag potential issues before they become problems. This reduces the risk of errors and the time spent on correcting them, further lightening the load on accountants.
3. Improving Work-Life Balance
With Bots and AI taking over routine tasks, accountants can achieve a better work-life balance. This makes the profession more appealing to younger workers who prioritise flexibility. Firms that adopt flexible working practices, supported by Bots and AI and other cloud-based tools, are likely to attract and retain top talent. Top talent who might otherwise be deterred by the prospect of long hours on mundane, boring tasks and inflexible working conditions.
4. Making the Profession More Appealing
The use of cutting-edge technology can also make accounting more attractive to tech-savvy younger generations. By positioning the profession as one that embraces innovation, firms can rebrand accounting as a forward-thinking, dynamic career path, with more collaboration with innovative technology. Rather than a staid, traditional one.
5. Facilitating Continuous Learning
Bots and AI can also play a role in professional development. AI-driven learning platforms can provide personalised learning experiences. They can help accountants stay updated with the latest regulations, standards, and best practices without the need for time-consuming, traditional training sessions. This can make the demanding educational requirements of the profession more manageable and appealing.
Beyond Automation: Creating a Sustainable Strategy
While Bots and AI are powerful tools, they are not a silver-bullet. Firms must also consider other strategies to attract and retain talent. For example, offering competitive salaries, clear career progression paths, and opportunities for professional development are essential. Firms could also consider creating partnerships with universities and colleges to foster early interest in accounting careers and offering apprenticeships or internships to provide practical experience.
Creating a supportive work environment that values employee well-being is equally important. This could include offering mental health support, promoting work-life balance, and recognising and rewarding employee achievements. By fostering a positive workplace culture, firms can improve job satisfaction and reduce turnover.
A great example of this are Gravitate Accounting, who work hard to create the ideal workplace for their staff to thrive with a 5-point program that covers equally:
- Competitive Pay and Benefits
- Emphasis on Health and Wellness
- Cultivating a Positive Work Culture
- Career Growth and Learning Opportunities
- Social Impact and Corporate Responsibility
Conclusion
The accounting and bookkeeping industry may be at a bit of a crossroads. To overcome talent shortages and make the profession more attractive to younger generations, firms must embrace the potential of Bots and AI. By reducing workloads, improving accuracy, and enhancing work-life balance, these technologies can help address many of the profession’s current challenges. However, this must be part of a broader strategy that includes competitive compensation, career development opportunities, and a supportive work environment. By taking these steps, the accounting profession can not only retain its current talent but also attract the next generation of professionals, ensuring its sustainability and success in the years to come.
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