Today we're touching on the AI subject once again - something we'll likely be talking about for some time given the projections about how this technology will turn the accounting profession on it's head. A recent Thomson Reuters report shows many within our industry are already using AI tools and there is growing optimism about AI's role in the industry.

While many accounting and finance professionals feel prepared to integrate AI, a significant number of CPAs remain unfamiliar with the technology. These professionals will need knowledgeable leaders to guide them. One such leader is with us today: Kacee Johnson, Vice President of Strategy & Innovation at CPA.com. Kacee will share her insights on AI in accounting, discussing CPA.com’s generative AI toolkit, practical use cases, initial steps for CPAs, and potential challenges in adopting AI technologies.

Join us for an insightful conversation to gain valuable guidance on leveraging AI in your accounting practices.

Resources

• Thomson Reuters report, "2024 generative AI in professional services"
• CPA Practice Advisor article, "Most Tax Pros, Corporate and Public, Believe AI Should Be in Their Toolbox", by Isaac M. O'Bannon
• Deloitte Center for Controllership poll
• CPA Practice Advisory article, "C-Suite is Optimistic About GenAI Use Within Finance and Accounting, Deloitte Says", by Jason Bramwell
• Kacee Johnson AICPA profile
• AICPA digital resource, "CPA.com Generative AI Toolkit"

In this episode, we're continuing our focus on the pipeline issue but this time we're looking at it's impact on corporate America specifically. Companies, big and small, are citing a shortage of skilled accounting personnel for weaknesses in financial reporting controls. This deficiency is a significant predictor of potential restatements of financial statements, affecting not only CPAs and firms but also investors.

Dr. Rebecca Hann, Assistant Dean of Doctoral Programs at the Robert H. Smith School of Business, discusses her recent study, "The Price of an Accountant Shortage: Evidence from Job Vacancy Duration and Internal Control Weaknesses." We explore the study's key findings, including correlations between the shortage of accounting talent and the frequency and severity of internal control deficiencies, as well as the duration of job vacancies in accounting roles. Additionally, we consider the role of purpose, the "why" behind we do, in addressing this issue.

Tune in for this crucial conversation on the profound impact of the accounting profession's challenges.

Resources

• Wall Street Journal article, "The Accountant Shortage Is Showing Up in Financial Statements" by Mark Maurer
• Accounting Today article, "The U.S. is short 340,000 accountants—just look at the wave of earnings report mistakes" by Jo Constantz
• UMD Robert H. Smith School of Business, Dr. Rebecca Hann webpage
• Dr. Rebecca Hann Scholarly Papers
• Dr. Rebecca Hann LinkedIn Profile

This week, we're diving into a well known, critical issue gripping our profession: the shortage of CPAs. It's a widespread challenge impacting businesses, causing staffing gaps, burnout, and compromised client service. The scarcity of expertise has escalated workloads, hindered recruitment and retention, and even led some firms to decline work due to insufficient manpower. To combat this, many organizations are resorting to measures like increasing compensation and offering more flexible work arrangements. The profession is undergoing a transformation to adapt and survive.

The ramifications extend beyond the accounting realm, influencing how businesses operate at large. Solutions are being sought across various fronts, including regulation, education, and cultural shifts. At the forefront of these discussions is our guest, Lexy Kessler, Mid-Atlantic Regional Leader and Partner at Aprio as well as a former chair of MACPA Board of Directors, who now chairs the National Pipeline Advisory Group. This group is spearheading efforts to formulate a unified strategy to address the talent shortage, leveraging unbiased research and stakeholder input. They've launched a national survey to gather insights and ideas for tackling this issue head-on. In our conversation, we delve into the progress of this initiative, its timeline, potential outcomes, and the individual CPA's role in bolstering the pipeline

Resources:

• Financial Executive International article, "Navigating the Accounting Talent Shortage: Strategies for Business Growth and Efficiency" by Justin Smith
• Forbes article, "Accountants Are Turning Away Work—Hurting Firms And Small Businesses" by Hitendra Patil
• CFO Dive article, "Auditors say accountant shortage ramps up work pressure: CAQ" by Jim Tyson
• Lexy Kessler, CPA, CGMA, Mid-Atlantic Regional Leader & Partner at Aprio
• Lexy Kessler LinkedIn Profile
• National Pipeline Advisory Group: Pipeline Survey