The Competition Between Companies and Accounting Firms

Accounting is an industry that is in high-demand across most of the United States. Dozens of major account firms have been changing how they recruit in order to hire the top talent, which means that competing companies have also had to adjust how they hire employees. The most recent changes to standard accounting principles and financial reporting tactics have made it imperative for these companies to hire only the most experienced and skilled accountants.

Importance of Accounting Professionals

Accountants are essential to the success and survival of many different companies. An accountant is not only required to set up financial controls and systems, but to also track critical aspects such as the growth and cash flow of various businesses. They also aim to keep companies up to date with changing regulations by conducting audits and keeping highly detailed records.

 Businesses that don’t have an accountant are more likely to struggle with growth than their counterparts. The chances of meeting compliance standards are higher with the use of an accountant. Most businesses opt to hire an in-house accountant. Other companies outsource their accountants through firms.

Increased Demand

In 2016, the unemployment rate of accountants sat at about 2.5%. In a study, it was recorded that the unemployment rate for other professionals with skilled jobs across the country was 4.4%. The U.S Bureau of Labor and Statistics began to adopt brand new job classifications and also started separating professional accountants sometime in 2011. When this began to play out, the unemployment rate for accountants was at 4.2%, showing that the increase in demand for accountants has been steady. With such a low unemployment rate, the competition among companies and accounting firms has continued to grow, making it more difficult to fill open positions.

A Shift in Culture

Most big accounting firms have shifted their focus to maintaining their company culture. Pricewaterhouse Coopers has taken leaps and bounds to decrease turnover and attract talent through their company’s culture as it improves. Before these drastic changes, workers had to work long hours and had no balance between work-life and home-life. Thanks to the new changes, they now have the options to work from the comfort of their homes, and to work a flexible part time schedule as they see fit. 

Changes in Regulations

Another reason for the shift in demand is the changes to the rules of the Financial Accounting Standards Boards. The changes mean that firms are required to use the new regulations when reporting values of leases and book revenues. The new and improved leasing rules go into effect sometime in 2019, and booking rules go into effect near the end of 2017.

Higher Salaries

The typical salary for an accountant in the United States is $67,190 per working year. Some of the new graduates, however, are able to earn up to $53,000 within their first year of work after graduation.

Increased Focus on Business Ethics

Scandals involving fraud have sabotaged the business industry during recent years. Many staff and executives in various accounting companies have been convicted in serious legal cases.

Accountants take on the task of analyzing financial statements to help their employers avoid legal problems and maintain a high standard of business ethics.

Growth in Job Options

SelectOne, which is a professional recruiting team, says that some of the fastest growing positions within the industry are that of staff accountant, budget analyst, and auditor.

An accounting degree at Maryville University can get you set up for a successful career, as it provides high quality courses that are both practical and interesting, as well as useful in the accounting world.