Incorporating NQ magazine
August 2023
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WHY AREN’T ACCOUNTANTS HAPPY BEING ACCOUNTANTS? Just over a third (36%) of accountants are considering leaving the profession in the next five years, including 30% of under 25s, new data from cloud platform Dext has revealed. This is particularly concerning as the number of students choosing an accountancy career appears to be falling, they say. Dext surveyed accountants and bookkeepers across the UK to determine their attitudes towards the profession, and what they needed to be happier in their roles. When looking at reasons why respondents are planning to leave the profession, the majority are planning to move to another industry or undertake a complete career change (21%).
Surprisingly, when looking at the specific demographics of those wanting to leave the profession, 24% of respondents aged 25-44 are leaving due to a lack of a healthy work/life balance. Some 22% of those with children are looking to leave for the same reason. For the over 55s, while the majority (67%) are leaving due to retirement, a third (33%) are planning to leave the accounting sector to join a new industry. Although the majority of respondents enjoy their role (90%), some 56% feel they spend too much time completing manual tasks. With 26-50% of tasks currently automated, respondents believe that this will increase to up to 75% in 10 years. When asked
what the accountants of the future would value most, the majority believe it is the better adoption of technology. Sabby Gill, Dext CEO (pictured),
said: “Accountants are vital for supporting entrepreneurs and businesses of all sizes, yet many are leaving because of work/life balance issues. Unfortunately, too much of an accountant’s role is still completed manually, meaning that they cannot optimise their time as much as they need to. “Although it is positive that automation is likely to increase in the next 10 years, that will be too late for many accountants who are planning to leave the industry long before then. It’s also concerning that many leaving for work/life balance reasons are parents, as a lack of optimised tasks is pushing this demographic from the accounting profession. It simply doesn’t need to be this way.”
The Big 4 firms need to up the pay of junior auditors if they want to make the sector more attractive to graduates, says the chair of the UK accountancy watchdog, Sir Jan du Plessis. There is growing concern that criticism of the Big 4 from both politicians and regulators is making it more difficult to recruit and retain auditors. The rising number of highprofile fines for poor work could also be adding to the problem. In an exclusive interview with the Financial Times, the chair of the Financial Reporting Council denied the regulator was making
the accountancy profession less appealing. Du Plessis pointed to the increased profitability at the audit firms. At two of the four big firms average partner pay has gone above £1m. He stressed: “They have the resources available to increase the pay levels of more junior people that they want to attract into their firm and it’s up to them whether they want to do so.” One of Big 4 offered starting salaries of £32,000 last year, but this is half of what City law firms are paying their trainees. Du Plessis told the FT that if a young person was looking to join a
profession, they would have wanted to join one that sets high standards. The FRC has a ‘name and shame’ policy and he was questioned on this approach. He felt it was important to keep this, although he said the FRC would try to avoid naming junior auditors accused of misconduct in future. The regulator recently faced a backlash after naming a KPMG junior in a case and even threatened him with a £50,000 fine. The trainee was eventually cleared of dishonesty and was not fined. They were, however, found guilty of lacking integrity. This problem is not a uniquely UK
one, either. IFAC recently highlighted the talent attraction challenges in the Danish auditing profession. It is experiencing a workforce exodus and is struggling to attract graduates. With companies losing employees this means those remaining have to work harder. This is having a significant impact on employees’ work-life balance, creating even more turnover of staff. It has been suggested that the education programme is too lengthy, and there is a feeling that statutory auditors in Denmark are being ‘overeducated’ compared with their needs in future careers.
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