The accounting industry is rapidly evolving and firms that don’t adapt risk being left behind. Here’s what experts say are six trends to watch in the accounting industry in 2023:
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Michael T. Allen, CPA, principal at REDW: “The accounting industry is not immune to the law of supply and demand. As the industry continues to grow, so will our demand for accounting candidates. This gap already requires accounting firms to heavily invest in retaining their workforce while facilitating firm-wide reskilling and upskilling opportunities. A trend we’re already seeing now will likely become the norm — there will be less focus on headcount and more focus on developing the skills needed to best serve the needs of accounting clients.”
Randy G. Brammer, CPA, managing partner, Wallace Plese + Dreher: “Firms will focus on organic growth by implementing more technology and evaluating efficiencies. Solo practitioners will seek out friendly mergers and established firms will acquire other firms with specialized services and industry experts. Firms without a solid succession plan will be acquired by private equity or larger firms.”
Michelle Flynn, CPA , tax partner at Wallace Plese + Dreher: “Career opportunities will increase at different levels. There will be different opportunities for people that do not want to be a partner. They may not want to manage a practice, but will add value by developing people that report to them.”
Scott Hitchler, owner of Saguaro Wealth Management: “Many businesses have relied on staff accountants to manage books, but more and more businesses are outsourcing to private accounting firms, which will continue.”
Jim McHugh, CPA, principal at CLA: “The health and wellness of the individual is truly becoming a focus in the industry as it looks to ditch the stigma that there is no work-life balance. The young professionals who are entering the industry are holding leaders accountable. They see the value of a career in accounting, but don’t want the experience if it’s going to come at the cost of their mental and physical well-being.”
Chuck McLane, senior managing director at CBIZ & MHM: “There will be a continued trend toward data analytics and advisory services. Clients are more interested in how to operate a successful business than the compliance work that is required. Thus, there is a greater willingness to pay for that type of expertise. Data analytics and advisory are becoming more expected in conjunction with standard compliance engagements. Accounting continues to become more complex and outside experts will continue to be needed by all businesses.”
