Why CPAs Will Have Excellent Job Security in 2023 and Beyond
Whenever somebody asks me why I became a CPA or an accountant, one of my top reasons is job security. I was taught long ago that CPAs will be able to find a job working in almost any location and for almost any industry, and it has held true over the course of my career as I've watched myself and many others on their professional journeys. But why do CPAs enjoy this job security? You're going to find out today when I share with you the reasons why CPAs will have excellent job security in 2023 and beyond. Let's get started!
#1 - Supply Side Constraints
As I've discussed in other blogs, the accounting talent shortage is real and will have lasting impacts on the profession (click here and here to learn why there are shortages of accountants nationwide). With fewer CPAs available, the value and job security of the CPAs that are still working drastically increases. Every year, I am not surprised to hear someone say that the CPA they usually work with is over capacity or retiring, which helps me sleep a bit better at night because I know that I am needed. It’s important to understand that the supply issues here are not just for entry level accountants, but for experienced, licensed, CPAs. This means that even if you see yourself among a larger pool of accounting graduates, you will still be in high demand once you gain that experience and license. So if you haven’t already, start studying!
#2 - Consistent Demand with Various Types of Opportunities
No matter what type of economy or job market we're experiencing, there will always be a need for:
Someone who can pay the bills and keep the lights on
Someone who understands business and can keep existing businesses growing
Someone to plan and help file taxes
Someone to perform financial statement audits over the companies that have annual and quarterly requirements
Someone to act as a third party advisor when a business wants to sell
Someone to help new entrepreneurs navigate their way through the language of business
Someone to navigate the intricacies of technical accounting and financial reporting
CPAs fill all of these essential roles, and many more. Additionally, CPAs can choose to gain experience in more than one of these essential areas to make themselves even more marketable. In addition to the short supply of CPAs noted above, this is the reason why CPAs can quickly find new positions if they want to make a change in their life.
#3 - Automation Isn't What You Think It Is
While the topic of automation deserves its own article, I will do my best to summarize here because it's important in the discussion of CPAs and job security. It's critical that you understand how automation works in any job sector before we start talking about automation in accounting. Automation replaces tasks, not necessarily people. There are some industries where automation takes over thousands of jobs, but only because those jobs consist entirely of automatable tasks. The near-term technology solutions for accountants that involve automation focus heavily on data entry or require an experienced human to check the work of the program. For accountants, it is far more likely that job descriptions will change as a result of new technology instead of full-on job replacement. But that's just for the entry level roles! CPAs have an extra layer of protection from automation because of the J word - judgment. Most CPAs have moved beyond the simple data entry tasks noted above. Their roles involve high level analysis, professional communication with clients, and most importantly, judgment in interpreting new accounting standards and tax law. The technology that is currently being used by accounting firms can barely read invoices consistently and is nowhere near replacing the level of judgment required in these higher level roles. Because there was so much interpretation and reading between the lines when it comes to these areas, I don't see the role of an experienced CPA being threatened by technology in the near future.
Now you know my top three reasons why accountants will have great job security in 2023 and beyond. If you are a student, or just someone who's looking to change their career, you should seriously consider accounting as an option. If the type of work and the skill set matches your personality, it can be a lucrative and rewarding career path while still being secure.