The difficulty of hiring a competent CPA tax preparer has turned out to be one of the major problems for accounting firms in the USA. While in the past such firms used to fill vacant posts within weeks, today it is becoming a norm to see such vacancies lying vacant for months.
Unfortunately, this staffing shortage is not going to solve itself, and firms waiting for the market to fix its problems could find themselves even farther behind in the future. In this blog we will examine why these staffing shortages are occurring and what can be done to hire a tax preparer for CPA firms.
There are many different things firms can do in order to solve this problem, and being aware of those can definitely prove helpful to any firm in the future.
Why CPA Firms Are Struggling to Fill Tax Talent Gaps
Understanding what is actually causing this shortage can help to formulate solutions that would be most suitable for a particular firm.
The Declining Pipeline of New Accounting Graduates
There has been a reduction in the number of students applying for accounting courses and taking the CPA test during recent years, unlike what was witnessed in previous decades. With this trend, there has been a reduced availability of fresh accounting professionals to join different positions within the profession.
The trend is experienced in all firms, but it mostly affects small firms, since they cannot match the budgets and reputations of large national firms in the competition for the same few candidates.
Rising Client Demand Outpacing Available Staff
While there are fewer professionals coming into the industry, demand for their services is increasing due to the complexity of tax regulations faced by firms. This makes things very tough for firms because they have to meet the increased demand using fewer hires.
firms that fail to deal with this problem find themselves facing problems in terms of late delivery or lower service quality, all of which affects the relationship they have developed over many years of working together.
Why Traditional Hiring Timelines No Longer Work
Such a traditional process of recruitment takes much time these days and can easily last for months due to the high level of competition in the labor market. However, by the time the position is occupied, the firm may be under considerable pressure trying to fill the shortage.
The lack of harmony between the timeline of recruitment and the needs of firms makes them look for other ways to staff their firm, including remote hiring.
How to Hire and Retain a Skilled CPA Tax Preparer in a Tight Labor Market
In tough times, even those organizations who change their recruitment process can hire and retain a competent CPA tax preparer. This section will explore all the actions that are important to accomplish this goal.
Where to Look Beyond Local Job Postings
Limiting the search to those who work locally will greatly reduce the options available for recruiting talent, especially when recruiting in small markets. firms that are open to working with people remotely or on a hybrid model will have much larger pools of qualified individuals to choose from while recruiting a CPA tax preparer.
What Makes a CPA Tax Preparer Stay Long-Term
Pay is important, but it is not the sole determinant of retention. The flexibility of work environment, a clear career path towards advisory positions and partnership, and work-life balance during busy times are some of the reasons why employees choose to remain with the firm.
Streamlining the Interview and Onboarding Process
An overly long and unorganized interviewing process may result in good candidates being offered positions elsewhere before they even have a chance at your firm. Fewer interviews with clearly defined timelines can enable a quicker hiring process without compromising an effective process.
Effective onboarding is more important than many firms give credit to. A well-planned start will enable the newly hired employees to settle into their roles more quickly.
Using the Best Tax Software for Small Tax Preparers to Offset Staffing Shortages
Software cannot be considered a substitute for qualified personnel; however, proper software can help minimize the need for extra staff on hand to perform the work.
Why the Right Software Reduces Dependence on Additional Headcount
Automation of routine activities such as data entry, file classification, and basic computations allows the existing workforce to concentrate on more intricate tasks, which effectively enhances the capabilities of the present team of employees without any additional recruitment.
For selecting the best tax software for smaller tax preparers, the emphasis should be on locating the right software that complements the present working processes of the firm instead of changing them completely.
Features That Matter Most for Small Firms
Small firms would need software that guarantees efficient electronic filing, accuracy control, and easy-to-use customer communication. An overly complicated enterprise system designed for a large corporation may even hinder performance when used by small businesses that are not familiar with all its functions.
Finding the best tax software for small tax preparers on the market normally requires trying a few products out using real customer data, as marketing may be misleading about the product performance under certain workload conditions.
Balancing Automation With Human Review
It is best to use automation together with good reviews, instead of relying on software completely. The most sophisticated software cannot always consider everything that an experienced preparer could spot, especially in case of unusual documents.
The firms that use technology as an auxiliary, but not a replacement for the employees, usually receive the best outcomes in terms of accuracy and efficiency.
Why More Firms Are Turning to CPA Outsourcing Services to Close Talent Gaps
If it turns out that recruitment alone cannot help fill the staffing gap, CPA outsourcing services provide a means of adding staff through a quick process without being tied to the long period of hiring.
Signs a Firm Should Explore CPA Outsourcing Services
Organizations that fail to meet deadlines, reject potential clients, or suffer from employees burning out due to work pressure during their busiest time periods are prime examples for outsourcing. All of these factors indicate an overload of work that simply cannot be overcome by adding more people to the organization.
This strategy is particularly suitable for organizations who want to try out more services without having to commit to a full-time employee immediately.
What Outsourced Support Can Cover During Peak Season
Outsourcing partners may be able to do anything ranging from basic bookkeeping and initial tax preparations to filing assistance services, all based on the unique requirements of each firm. Outsourcing gives the benefit of scaling up during the peak seasons and scaling down after completing all deadlines.
This is unlike hiring an employee who would have to undergo the process of training regardless of the time when they join the firm.
Combining In-House Staff With Outsourced Talent
Many businesses have achieved success by integrating both their own employees and outsourced labor, having their internal team handle the client relationships while outsourcing any excess work. This way of working ensures that client confidence is not compromised and allows businesses to deal with their limitations in terms of capacity.
Solving the problem of the talent shortage in CPA firms today takes more than one solution. CPA firms that have a smart recruitment policy, technology, and outsourcing services can be more capable of ensuring that each CPA tax preparer is kept busy without overworking their current workforce. As the job market for accounting professionals continues to be challenging, CPA firms that take action based on the above recommendations will be ready for anything.
Looking to overcome shortages in tax talent at your firm? Join hands with The Fino Partners, an outsourcing partner that can help you hire a tax preparer with qualified and experienced staffing services for CPA and accounting firms
