Why 87% of CPA Firms Can't Find Talent

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Why 87% of CPA Firms Can't Find Talent

(And the 3 Changes That Fix It)

by Joy Francis, CFO and AI Automation Strategist

The phone rings. Another recruiter calling about that senior accountant position you posted six weeks ago. "Any interest?" you ask hopefully.

"We got three applicants. None qualified."

If this sounds familiar, you're not alone. According to recent industry data, 87% of finance leaders acknowledge a critical talent shortage, with the average number of open positions increasing 150% in just one year. For CPA firms, this isn't just an inconvenience—it's an existential threat. When 45% of firms report that the talent crunch is actively slowing their growth, we're not talking about a temporary hiring challenge. We're talking about a fundamental shift in what accountants want from their careers.

Here's the uncomfortable truth most firm owners are missing: Your talent problem isn't about salary. It's about the work itself.

The Real Reason Top Accountants Won't Apply (Or Won't Stay)

The accounting workforce has shrunk by 17% since 2020, with over 300,000 professionals leaving the field entirely. But where are they going?

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They're not retiring early. They're choosing better-paid, more strategic roles in tech, investment banking, and private equity. They're becoming contractors or starting their own practices. They're seeking work that feels meaningful rather than mind-numbing.

The brutal reality: 78% of firms report struggling to hire, and those that do find candidates face average turnover rates of 19%—a stark contrast to historical norms. Young professionals are leaving accounting due to three consistent factors: burnout from long hours, tedious manual work that could be automated, and a complete lack of skills.

Think about what you're selling when you post that job listing. What does the work look like? If you're honest, most of the role involves:

• Processing tax returns during crushing busy seasons

• Entering data that software could handle

• Reviewing compliance documents

• Responding to the same client questions repeatedly

Now ask yourself: Would YOU be excited about that job?

The accountants you want—the strategic thinkers, the problem solvers, the ones who could grow into partners—aren't interested in being compliance processors. They want work that matters. Work that builds something. Work that uses their analytical minds for strategy, not just data entry.

That's your talent problem. And no number of free snacks in the break room will fix it.

The 3 Strategic Changes That Actually Attract (and Keep) Top Talent

The good news? The firms that ARE winning the talent war have made three fundamental shifts. These aren't quick fixes or recruiting hacks. They're strategic transformations that change what it means to work at your firm.

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Change #1: Transform the Work from Tedious to Strategic

Forward-seeing CPA firms are restructuring rolls around advisory services, not just compliance work. Instead of hiring "tax preparers," they're hiring "client financial advisors" who happen to do tax work as one component.

What does this look like in practice? These firms:

Conduct quarterly strategic planning sessions with clients (not just annual tax review meetings)

• Build rolling 12-month forecasts with business owners

• Identify financial levers and growth opportunities

• Provide CFO-level insights and recommendations

Research shows that strategic advisory services can increase monthly client revenues by up to 50%. When buyers add advisory services to traditional accounting work, they pay nearly 50% more. That's not just better for your margins—it's better for your staff's engagement.

One managing partner told me: "We used to hire people to process returns. Now we hire people to solve business problems. The work is completely different. And retention? It's night and day."

The shift isn't optional anymore. According to industry surveys, 63% of buyers now prefer non-hourly billing like fixed fees or project-based pricing for advisory work. Your clients are ready for this transformation. The question is: Are you?

Change #2: Fund Competitive Compensation Through Higher Margins

CPA firms struggle to pay competitive salaries when charging outdated prices for compliance work increasingly handled by software.s

But when you shift even 20-30% of your revenue mix to advisory services at premium pricing, suddenly the economics change. Those 50% higher fees? They're not just revenue—they're margin. Advisory work typically carries 60-70% margins compared to 40-50% for compliance.

That margin funds:

• Signing bonuses that get candidates' attention

• Competitive base salaries that retain your best people

• Performance bonuses tied to client outcomes

• Professional development budgets

• Flexible work arrangements without sacrificing profitability

You can't win the talent war on price alone. But you also can't compete for top talent when your margins are razor-thin because you're stuck in hourly billing for commoditized services.

The firms attracting talent aren't just "paying more." They're earning more through strategic positioning—which allows them to pay more sustainably.

Change #3: Create a Clear Path from Processor to Strategic Advisor

The third change is about career architecture. Top accountants don't just want a job—they want a trajectory.

Traditional CPA firms offer a path that looks like this: Staff Accountant → Senior Accountant → Manager → Partner

What's missing? The skill transformation.

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In that traditional path, you're essentially doing the same compliance work at increasing volume and complexity. There's no development arc from technical processor to strategic advisor. No wonder ambitious accountants look elsewhere.

Forward-thinking firms are redesigning career paths around capability development:

Year 1-2: Foundation

• Technical compliance skills

• Client communication basics

• Process efficiency

Year 3-4: Advisory Development

• Rolling forecast creation

• Financial analysis and pattern recognition

• Strategic conversation frameworks

• CFO-level thinking

Year 5+: Client Leadership

• Leading strategic planning sessions

• Advising on major business decisions

• Building and presenting growth scenarios

• Mentoring junior staff in advisory skills

The firms doing this well document the competencies required at each stage and provide training, mentoring, and real client opportunities to develop those skills.

One firm owner shared: "We used to lose our best people at year three because they were bored. Now? They're leading client advisory boards and building toward partnership. Nobody's leaving."

The Bottom Line: Change the Work or Lose the War

The CPA talent crisis isn't going to resolve itself. With 75% of CPAs approaching retirement age and CPA exam candidates down 27% over the past decade, the pipeline problem is only getting worse.

But here's what the data clearly shows: Firms that transform their work from compliance-focused to advisory-focused are winning. They're attracting talent. They're retaining staff. They're growing faster and more profitably than their competitors.

The three changes aren't cosmetic. They're structural. They require you to rethink what your firm does, how you price it, and how you develop your people.

But consider the alternative: Another year of open positions you can't fill. Another tax season where burnout drives your best people to competitors. Another round of exit interviews where talented accountants tell you they're leaving for "better opportunities"—meaning work that uses their strategic capabilities.

The choice is clear. The question is: Will you make it?

Ready to Transform Your Firm?

If you're tired of losing the talent war and ready to restructure your firm around strategic advisory work, start with our Forward-Seeing™ Firm Assessment. This 15-minute diagnostic will show you exactly where your firm stands on pricing power, talent magnetism, and advisory readiness—and what to fix first.

Discover your score and get your personalized roadmap at Forward-Seeing™ Firm Assessment

About the Author: Joy Francis is a CFO with 45 years of experience transforming businesses from survival mode to strategic growth. Legally blind since birth, she sees the financial levers most business owners miss. She helps CPA firms transition from compliance-focused historians to forward-seeing strategic advisors through her Forward-Seeing CFO Masterclass.