The global accounting profession is facing a severe mental health crisis.
- New statistics reveal that increased working hours and reduced salaries are causing significant harm to accountants’ wellbeing.
- A staggering 90% of accounting professionals report experiencing stress, with 33% describing this harm as severe.
- The talent shortage in the accounting sector has led to an existential skills gap, pushing many professionals out of the industry.
- Advancetrack has proposed five strategic action points to address these challenges, focusing on flexible work, career development, and technology.
The global accountancy profession is confronting a mental health emergency, with 90% of professionals reporting significant stress due to heightened work demands and stagnating salaries. Such pressures have become a substantial deterrent for potential entrants into the field.
According to the Accounting Talent Index by Advancetrack, increased working hours due to a skills shortage are markedly impacting mental health and work-life balance. The situation has led to a notable exodus, with an estimated 300,000 accountants leaving the profession in the US between 2019 and 2022, mirroring trends in the UK and Australia.
Vipul Sheth, Managing Director of Advancetrack, has highlighted a widening gap between supply and demand for accountancy talent. He warns that without urgent intervention, the appeal of entering or remaining within the profession will plummet, exacerbating existing challenges.
The issues confronting accountants include not just long hours but also stagnant or declining salaries, which have seen stark contrasts with other professions such as data and management analysts.
Advancetrack has launched five key initiatives to tackle the crisis: improving work-life balance through hybrid and remote working options, enhancing career development with continuous education and leadership training, creating inclusive work cultures, ensuring competitive compensation, and leveraging technology to increase efficiency.
While partner hours have risen significantly, the accounting profession is increasingly seen as demanding and stress-inducing, with half of firms severely affected by skills shortages. This perception has worsened over recent years, posing risks to not only mental health but also talent retention within the sector.
Recent reports align with findings from ICAEW charity Caba, which indicated over half of accountants are struggling with stress and burnout, primarily due to workload and long hours.
Immediate and collaborative action is essential to address the systemic challenges threatening the well-being and retention within the accounting sector.
