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Mastering Labor Challenges Can Drive Growth for CPA Firms

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Let’s face it, the accounting profession has developed a bad reputation – toiling through long hours chained to a desk, crunching numbers, deciphering archaic tax codes and grinding out tedious tasks, all for lower starting pay and heavy licensing requirements.  

The sector is at an inflection point with staffing challenges – one that offers both risk and opportunity. Competitive firms looking to seize that opportunity need to modernize their approach to investing in both technology and staff development to enable professionals at all levels of the firm to elevate how they serve clients and dive into their professional purpose as accountants.  

A look at the (frightening) numbers 

There are two sides to the talent supply problem – accountants are leaving the profession at alarming rates and new graduates aren’t choosing to study accounting. The number of graduates in the U.S. receiving Bachelor’s and Master’s degrees in accounting has dropped 17% over the past six years to roughly  66,000 in 2022 compared to 80,000 in 2016, according to the AICPA 2023 Trends Report.  

Compounding the problem is the increased demand for accountants. The U.S. Bureau of Labor Statistics estimates employment of accountants and auditors to grow by about 4% each year through 2032, with an annual number of job openings expected to be about 126,500. This is mostly driven by those leaving the profession because of retirements, career changes and other reasons. The results are profound: more than 99% of the top CPA firm leaders in the US said they can’t adequately fill their staffing needs domestically. 

A new generation of workers 

Newly minted graduates also may have different expectations of work than their predecessors. In fact, by 2030 Gen Z will make up 30% of the workforce. Gen Z is the first generation of true digital natives who grew up with smartphones and access to the Internet.  

Each generation has its expectations about what professional life should look like and Gen Z is not different. Flexibility and a healthy balance between work and personal life are key with 73% of Gen Z wanting permanent flexible work alternatives. They want to spend less time on monotonous work and instead access the technology, automations, and resources to become a trusted business advisor and make work easier and more fulfilling. 

The solution  

Changing the industry’s perception isn’t easy, yet firms can leverage technology to adapt to the changing landscape and embrace a new way of working. This evolution in thought will help firms meet recruiting challenges, aid in retention, and drive growth. 

Firms don’t often consider technology investments as connected to HR or culture and most view it as a cost that should be kept to a minimum. By investing in technology, firms will increase flexibility, and upskill their staff in meaningful ways – creating an innovative culture in the firm that leads to opportunities for differentiation and success in talent management. 

Capitalize on Technology 

One significant implication of having less staff is that firms need to do more with less. Investments in software help to modernize the workplace, heighten productivity, and enable firms to stay competitive. 

Consider the steps many firms took between completing a tax return for their client and eFiling. Accountants must manually create PDFs from the tax forms and send them via email to their client. The client then prints, signs, scans, and returns the form to the accountant. Once received, the forms need to be filed in a local drive or file share, the status at each step needs to be manually tracked, and only then can the accountant eFile the return. 

Technology solves this problem by enabling a same-day turnaround for a process that took multiple days. A firm using an integrated suite (ideally in the cloud) can simply publish the return and consent forms directly to a secure client portal. The client then reviews information and electronically signs the consent form which is filed automatically in the firm’s document repository. Each step is automatically tracked, and sometimes, the return is automatically eFiled. Once filed, a bill is automatically generated and sent electronically to the client who can in turn pay almost immediately. This software is commercially available and hardly ground-breaking, yet many firms haven’t made this basic investment.  

Invest in People 

Access to technology alone isn’t going to solve the talent drought. When it comes to retaining talent, firms need to reframe their perspective toward professional development. This means building employees’ skillsets through technology and encouraging mentorship opportunities from senior staff. Firms that prioritize education and training are more likely to see increased efficiency and productivity. Establishing a safe environment where newer staff can ask questions of senior staff gives young accountants the chance to grow and more experienced members the chance to give back.  

Bottom line: Invest to grow 

Rather than viewing the accounting labor shortage as a crisis, I would argue that it represents an opportunity to transform the profession. Investing in technology, creating a culture of development, fostering work-life balance, and promoting collaboration and teamwork will drive firms into the future, where customers are better served and the accounting profession instills passion among its employees. 

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Dean Sonderegger is Senior Vice President and General Manager, Canada and Research & Learning of Wolters Kluwer Tax and Accounting North America. He’s responsible for accelerating Wolters Kluwer’s vision and strategy, with a particular focus on the rapid development of advanced digital products and services to enhance customers’ efficiencies and workflow.  Previously, Sonderegger served as Senior Vice President and General Manager of Legal Markets Group and Innovation for Wolters Kluwer Legal & Regulatory US.   

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Leaders

Mark Cuban is The Maverick Entrepreneur Changing Business and Beyond

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Mark Cuban's journey embodies the American entrepreneurial spirit

From selling garbage bags door-to-door as a child to becoming a billionaire tech pioneer and beloved “Shark,” Mark Cuban’s journey embodies the American entrepreneurial spirit. His straight-talking approach and business acumen have made him one of the most recognizable business figures of our time.

Early Life and Education

Born in Pittsburgh on July 31, 1958, to working-class parents, Cuban learned the value of hustle early. His grandfather, a Russian immigrant, sold merchandise from the back of his car—perhaps planting the entrepreneurial seed that would define Cuban’s future.

After graduating from Indiana University in 1981 with a degree in business, Cuban didn’t follow a traditional career path. Instead, he moved to Dallas with just $60 in his pocket, sleeping on the floor of a friend’s apartment while working as a bartender.

Building His Fortune

Cuban’s first major success came in 1990 when he sold his computer consulting firm, MicroSolutions, for $6 million. However, his true financial breakthrough arrived during the internet boom of the 1990s. Cuban and his business partner Todd Wagner founded Broadcast.com, an internet radio company that streamed audio of sports events and other content.

In 1999, Yahoo acquired Broadcast.com for $5.7 billion in stock—a deal that instantly made Cuban a billionaire and cemented his place in tech history.

The Dallas Mavericks Era

In 2000, Cuban purchased a majority stake in the NBA’s Dallas Mavericks for $285 million. Under his passionate and sometimes controversial leadership, the team transformed from a struggling franchise into NBA champions in 2011.

Unlike traditional team owners, Cuban sits courtside at games, openly criticizes referees, and maintains close relationships with players. His hands-on approach revolutionized NBA ownership culture and turned the Mavericks into a billion-dollar franchise.

Beyond Business: Media and Philanthropy

Cuban’s charismatic personality made him a natural fit for television. Since 2011, he has been a main investor on ABC’s “Shark Tank,” where his no-nonsense approach and investment savvy have helped launch numerous successful startups.

Behind the public persona lies a dedicated philanthropist. The Mark Cuban Foundation supports various causes, including entrepreneurship programs for at-risk youth and research into treating rare diseases. Following the COVID-19 pandemic, Cuban launched Cost Plus Drugs, aiming to dramatically reduce prescription medication prices for millions of Americans.

Looking Forward

Today, Cuban continues to disrupt industries through his forward-thinking investments in AI, cryptocurrency, and healthcare. Despite his billions, colleagues describe him as remarkably approachable and genuinely passionate about helping entrepreneurs succeed.

Cuban remains focused on making healthcare more affordable through Cost Plus Drugs and exploring new frontiers in digital technology. His commitment to transparency in business practices and creating opportunities for others forms the cornerstone of his ongoing legacy.

For aspiring entrepreneurs, Cuban’s advice remains consistent: follow your passion, outwork the competition, and always be learning. As he often says, “Work like there is someone working 24 hours a day to take it all away from you.”

Mark Cuban’s journey from selling garbage bags to building a multi-billion-dollar empire proves that with determination, innovation, and a willingness to challenge the status quo, extraordinary success is possible.

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Technology

Quantum Computing is Transforming Industries, Security, and Future Technologies

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Quantum Computing is Transforming Industries, Security, and Future Technologies

Quantum computing is rapidly emerging as one of the most transformative technologies of the 21st century. Unlike classical computers, which use bits to process information as either 0s or 1s, quantum computers leverage qubits, allowing them to exist in multiple states simultaneously. This property, known as superposition, along with entanglement and quantum tunneling, enables quantum computers to solve complex problems exponentially faster than traditional systems. As this technology advances, industries across the board are exploring its potential to revolutionize computing, security, and data processing.

Real-World Applications of Quantum Computing in Industries

Several industries are already benefiting from quantum computing’s capabilities. In healthcare, quantum algorithms are accelerating drug discovery by simulating molecular structures at an unprecedented scale, significantly reducing the time required for pharmaceutical research. Financial institutions are leveraging quantum computing to optimize trading strategies, portfolio management, and risk assessment. In manufacturing, quantum simulations enhance material science, leading to the development of stronger and more efficient materials. The logistics sector is also utilizing quantum computing to optimize supply chain management, reducing operational costs and improving efficiency.

Key Developments from Tech Giants in Quantum Research

Leading technology companies such as Google, IBM, Microsoft, and Intel are at the forefront of quantum computing research. Google made headlines with its claim of achieving quantum supremacy in 2019 when its quantum processor completed a calculation in 200 seconds that would take a classical supercomputer thousands of years. IBM continues to advance its quantum computing roadmap with cloud-accessible quantum computers and the development of a 1,000-qubit processor. Microsoft is investing heavily in topological qubits, a novel approach aimed at creating more stable quantum processors. Meanwhile, Intel is working on silicon-based quantum chips, striving to make quantum computing more scalable and accessible.

Quantum Cryptography and Its Potential to Redefine Security

As quantum computers advance, they pose a significant threat to current encryption methods. Traditional cryptographic techniques, such as RSA and ECC encryption, rely on the difficulty of factoring large numbers, a challenge that quantum computers can overcome almost instantly. Quantum cryptography, particularly quantum key distribution (QKD), offers a solution by leveraging the principles of quantum mechanics to create theoretically unbreakable encryption. Governments and cybersecurity firms are actively researching post-quantum cryptographic solutions to safeguard sensitive data against potential quantum attacks.

Challenges in Scaling Quantum Technologies

Despite its immense potential, quantum computing faces several challenges before it can become widely adopted. One of the biggest hurdles is qubit stability, as qubits are highly sensitive to environmental disturbances, leading to errors in computations. Error correction mechanisms are still in their early stages, requiring significant advancements before quantum computers can handle large-scale, practical applications. Additionally, quantum hardware is expensive and requires extreme cooling conditions, making commercialization difficult. Researchers and tech companies are actively working on solutions to address these challenges, but widespread implementation remains years, if not decades, away.

Conclusion

Quantum computing is poised to revolutionize industries by solving complex problems beyond the reach of classical computers. From pharmaceutical research and financial modeling to secure communications and logistics optimization, its applications are vast and transformative. However, challenges related to scalability, stability, and cost must be addressed before quantum computers can become mainstream. With continued advancements from tech giants and research institutions, the future of quantum computing holds immense promise, paving the way for groundbreaking innovations in computing and security.

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Technology

Reddit CEO Steve Huffman Unveils Monetization Strategy for 2025

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Reddit CEO Steve Huffman Unveils Monetization Strategy

In a strategic move to diversify revenue streams and enhance user engagement, Reddit CEO Steve Huffman has unveiled plans to introduce paid subscriptions for select subreddit content by the end of 2025. This initiative aims to offer exclusive, subscriber-only content within certain communities while maintaining the platform’s foundational free access.

During a recent “Ask Me Anything” session, Huffman described the paid content model as a “work in progress,” emphasizing its significance as one of the “new, key features” slated for rollout this year. He reassured users that the introduction of paid subreddits would not compromise the availability and growth of free content on the platform. This approach seeks to balance monetization efforts with Reddit’s commitment to open access, ensuring that the core user experience remains intact.

In addition to paid subscriptions, Reddit is exploring the development of marketplace features within subreddits. This would enable users to conduct transactions directly on the platform, facilitating the buying and selling of goods and services without the need for third-party platforms. Such a marketplace could significantly enhance user interactions and create new monetization avenues for both Reddit and its users. However, Huffman noted that this aspect of monetization is still under development and may take time to fully implement.

These strategic initiatives come in the wake of Reddit’s financial performance in 2024, where the company reported a net loss, prompting a reevaluation of its monetization strategies. Despite the financial setback, Reddit experienced a 39% increase in daily active unique visitors, totaling 101.7 million users. This growth, although slightly below market estimates, underscores the platform’s expanding user base and the potential for monetization through diversified offerings.

Reddit’s foray into paid content and on-platform transactions reflects a broader trend among social media platforms seeking sustainable revenue models beyond traditional advertising. By introducing exclusive content and facilitating user-driven commerce, Reddit aims to enhance user engagement, attract new audiences, and provide content creators with opportunities to monetize their contributions. As these plans unfold, the platform will need to navigate potential challenges, including user reception and the integration of new features, to successfully balance monetization with its community-driven ethos.

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