Where have all the accountants gone?

Tax season has a way of putting the accountant shortage under a magnifying glass—and it’s not looking pretty. This has been an ongoing challenge in the United States, shaking up entire industries and casting a shadow on economic growth.

In fact, fewer than 1% of accounting firms report being fully staffed. The result? Overworked accountants turning away new clients and businesses struggling to secure accountants in time to meet tax deadlines and financial obligations.

Curious why we’re experiencing this? Let’s dive in.

Why is there an accountant shortage?

The current accountant shortage stems from a perfect storm of factors:

• Baby boomers retiring: Three-quarters of CPAs are baby boomers, and 75% hit retirement age by 2020, leaving a massive gap in the workforce (Controllers Council)
• Decline in young professionals: Accounting graduates have been on a steady decline for nearly a decade, with CPA exam participation dropping 33% between 2016 and 2021. Since 2019, there are 13% fewer CPAs nationwide (CPA Journal).
• Low pay: Entry-level public accountants earn $59,000 on average, with only marginal increases for senior roles. (Becker)
• Increased demand: The need for accounting services has grown, driven by complex tax codes, global business expansion, and tighter regulations.
• Complex licensing requirements: Intense CPA requirements and long study hours are deterring potential candidates.

How the shortage impacts U.S. businesses

According to a CPA Trendlines survey, 42% of accounting firms are turning away work due to staffing issues. And yet accounting demand is projected to rise by 6% by 2025. 

The ripple effects of the accountant shortage are being felt nationwide, particularly for small businesses:

• Delayed tax filings: Staffing shortages lead to missed deadlines, increasing the risk of penalties.
• Missed opportunities: Businesses struggle to claim tax credits and deductions due to lack of guidance.
• Increased stress: Administrative burdens fall back on business owners, pulling focus from growth.

The numbers paint a stark picture: by 2027, the U.S. is projected to face a shortfall of 140,000 accountants, leaving businesses to wonder—who will manage their growing financial complexities?

How Zeni can help 

The tax landscape is complicated, and with the ongoing accountant shortage, businesses face an uphill battle to stay compliant and maximize savings. 

Despite these challenges, Zeni’s team of seasoned tax professionals is here to help, ensuring your business doesn’t miss a beat.

A little bit about Zeni’s tax services

Who we support

• C-Corps, S-Corps, LLCs

What we handle

• Annual Tax Filings: Federal and state filings handled seamlessly
• R&D Tax Credits: We’ll identify expenses, file paperwork, and ensure compliance to unlock savings
• Specialized Services: From Delaware Franchise Tax to FBAR reporting, we’ve got you covered

Why choose Zeni

• $6.5M R&D tax credits captured for clients
• 0 IRS audits for Zeni-supported filings
• 100% on-time tax filings

Let Zeni handle tax season so you can focus on what matters most: growing your business.

Preparing for the future

The accountant shortage isn’t going away, but businesses can still get the support they need by turning to companies like Zeni.

Taking smart steps now means staying ahead, even during tax season. Schedule a free consultation with a Zeni tax advisor here. 

For more on the accountant shortage and how it’s shaping the industry, check out:

• Outsourced Bookkeeping
• Escalon Services
• CPA Journal
• Thomson Reuters