Jumping Ship: Why do CPAs Flee? | AccountingWEB

Jumping Ship: Why do CPAs Flee?

AccountingWEB has reported several stories over the past few months about the consistent migration of CPAs and accountants from accounting firms to smaller businesses--many of which are dotcoms.

Where does all the competition come from? Skilled, trained accountants certainly aren't a dime a dozen; in a six-year period from 1992 to 1998, the number of people sitting for CPA Exam fell 40 percent.

Rivalries spring from the Silicon Valley and Wall Street, where CPAs working for Big 5 firms and smaller shops can be lured for stock options, incentives and other benefits.

But more than that, analysts say the increased pressure over accounting regulations have forced the bean counters to flee their previous firms. Another factor is the stringent 150-hour rule that requires, for most students, five years of school. AccountingWEB recently ran an article about how firms in Illinois are overlooking the rules and hiring students regardless of the amount of hours they possess.

To fight back, large firms have begun increasing salaries and offering more benefits--but are they too late?

In a related story, find out how Andersen Consulting is compensating its own workforce.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.