NEWS

What is the fastest-growing challenge facing accounting firms and internal audit departments today? More than 90% point to hiring and retaining skilled accountants and auditors. Some are even turning away business due to a shortage of staff. 

That’s the finding of two newly released reports by software provider Caseware International, which surveyed more than 6,000 accountants and auditors globally. 

According to the surveys, to tackle this challenge and boost client collaboration, accounting and auditing organisations are ramping up the adoption of advanced technologies such as cloud services, data analytics and business intelligence. 

The Caseware reports ‐ 2023 State of Accounting Firms Trends Report and 2023 State of Internal Audit Trends Report ‐ offer a glimpse into how accounting firms and internal auditors worldwide are adjusting to changing business environments. Responses were gathered from more than 4,100 accountants and 2,300 auditors. 

Technology challenges

Other top practice management challenges cited by accountants relate to new ways of working, including communicating with clients in a virtual world (40%), using new technologies (38%) and adjusting to working remotely (35%). Auditors pointed to moving from manual to digital processes (38%) and adopting new audit technology (36%) as the main issue.

Caseware chief commercial officer, Davis Jackson, said: “Accounting and auditing professionals are still coming to grips with technologies that most were forced to adopt due to the COVID-19 pandemic and are placing a heightened sense of urgency on adopting new technologies to enhance their work processes, collaboration and insights.”

According to the reports, almost 70% of accounting firms expect their rate of technology adoption to increase over the next two years, while more than 80% of internal audit teams are already employing cloud technology.

Jackson concluded: “Clients today expect their accountants and auditors to deliver more than just numbers ‐ they want deeper insights to help direct their business strategies, so it’s not surprising that more and more professionals are turning to intelligent technology to enhance their role as strategic advisors.”

CIMA signs MoU with The Productivity Institute

The Chartered Institute of Management Accountants (CIMA), part of the Association of International Certified Professional Accountants founded with the American Institute of CPAs (AICPA), has signed a Memorandum of Understanding (MoU) with The Productivity Institute to enable cooperation on generating new insights into the problem of low productivity growth and the role of accountants and finance professionals, UK businesses, and government in addressing it.

The Productivity Institute and AICPA & CIMA intend to develop, produce, and publish joint research, host joint events, and collaborate on the secure sharing and analysis of relevant data sets. They have committed to sharing and disseminating best practices and insight amongst the academic and management accounting communities, as well as other relevant stakeholders.

Since 2022, the two organisations have been engaged in a dialogue on productivity issues and improvement opportunities for businesses and the UK government. AICPA & CIMA’s recent report entitled The role of finance professionals in driving productivity is based on research and practical insights generated by the two organisations. These include the experiences CIMA members have in enhancing their productivity and how those efforts link with business partnering, agile transformations, collaboration, and hybrid work practices. It also draws on evidence gathered by The Productivity Institute concerning businesses and the public sector.

AICPA chief executive for management accounting, Andrew Harding, commented: “The UK is failing to solve its productivity problem, which has been holding the economy back for over a decade now. This is hampering real wage growth and preventing businesses from developing as they should. Having a clear strategic economic, commercial, and political focus to solve this issue has never been more important.

“I am delighted that we are working with The Productivity Institute. I believe this collaboration will generate the research and insights we need to address a decade of economic stagnation, and apply it to building the bright economic future we all want to see.”

The Productivity Institute managing director, Bart van Ark, concluded: “Businesses are the main drivers of productivity growth, yet it often remains unclear to leaders in key business functions like finance how they should be thinking about productivity and how to incorporate it into their everyday actions to add value. We look forward to working with AICPA & CIMA to ensure productivity-boosting measures are better understood and incorporated into an organisation’s broader strategy.”

The Chartered Institute of Management Accountants (CIMA), part of the Association of International Certified Professional Accountants founded with the American Institute of CPAs (AICPA), has signed a Memorandum of Understanding (MoU) with The Productivity Institute to enable cooperation on generating new insights into the problem of low productivity growth and the role of accountants and finance professionals, UK businesses, and government in addressing it. 

The Productivity Institute and AICPA & CIMA intend to develop, produce, and publish joint research, host joint events, and collaborate on the secure sharing and analysis of relevant data sets. They have committed to sharing and disseminating best practices and insight amongst the academic and management accounting communities, as well as other relevant stakeholders. 

Since 2022, the two organisations have been engaged in a dialogue on productivity issues and improvement opportunities for businesses and the UK government. AICPA & CIMA’s recent report entitled The role of finance professionals in driving productivity is based on research and practical insights generated by the two organisations. These include the experiences CIMA members have in enhancing their productivity and how those efforts link with business partnering, agile transformations, collaboration, and hybrid work practices. It also draws on evidence gathered by The Productivity Institute concerning businesses and the public sector.

AICPA chief executive for management accounting, Andrew Harding, commented: “The UK is failing to solve its productivity problem, which has been holding the economy back for over a decade now. This is hampering real wage growth and preventing businesses from developing as they should. Having a clear strategic economic, commercial, and political focus to solve this issue has never been more important. 

“I am delighted that we are working with The Productivity Institute. I believe this collaboration will generate the research and insights we need to address a decade of economic stagnation, and apply it to building the bright economic future we all want to see.” 

The Productivity Institute managing director, Bart van Ark, concluded: “Businesses are the main drivers of productivity growth, yet it often remains unclear to leaders in key business functions like finance how they should be thinking about productivity and how to incorporate it into their everyday actions to add value. We look forward to working with AICPA & CIMA to ensure productivity-boosting measures are better understood and incorporated into an organisation’s broader strategy.” 

The American Institute of CPAs (AICPA) has released an updated version of its plan to increase both the number of accounting graduates who pursue a career in the profession and those who go on to obtain a CPA license. 

The detailed plan, which builds on earlier drafts to create a nationwide CPA pipeline strategy, will be presented next week at the spring meeting of the AICPA’s governing council. AICPA leadership is looking to move forward with a consensus approach for both quick and long-term actions to attract future generations of accountants and CPAs. 
 
AICPA CEO of public accounting, Susan Coffey, said: “Building the CPA pipeline requires a united effort from all stakeholders tied to the profession. 

“We need to work together to raise awareness about the rewarding work we do, broaden the range of talent we draw from, and address stumbling blocks that derail too many prospective CPA candidates. As the largest national body for the accounting profession, the AICPA is uniquely positioned to channel ideas into action and mobilise efforts in a coordinated way to achieve success. Our plan offers a framework for moving forward but is by no means the last word – this is an evolving process that will require resolve, foresight and close collaboration with important partners.

There are numerous factors leading to a decline in the number of accounting graduates and of those who go on to obtain a CPA license. Some are not unique to the profession, such as falling college enrollments due to demographic shifts and rapidly rising education costs that have led some to question the value of a college degree. But misperceptions about the nature of a career in accounting, lower entry-pay than some comparable fields, and a licensure process that can be complicated have also played a role. 

The AICPA engaged in a dialogue with numerous stakeholders before publishing its plan, including state CPA societies, accounting firms, academia, state boards of accountancy and their organising body, the National Association of State Boards of Accountancy (NASBA). Going forward, we intend to create a clearinghouse for innovative and meaningful pipeline ideas and convene stakeholder forums to work through issues, set data-driven goals and measure outcomes to ensure accountability."

Edinburgh Napier University has launched a postgraduate education programme for Deloitte. 

The agreement allows the Big Four firm to offer a part-time Master of Science (MSc) qualification in Digital and Business Risk Management from Edinburgh Napier University to its IT Audit & Assurance and Risk Advisory graduate hires in the UK. 

The course will be completed remotely, on a part-time basis over three years, alongside paid study-leave provided by the firm. 

The first cohort of 35 Deloitte employees are already undertaking a series of modules which build skills in relation to identification and management of business and emerging technology and digital risks for organisations of differing size, scale and industries. 

Deloitte will offer the same opportunity to those joining its IT Audit & Assurance and Risk Advisory teams as part of the firm’s graduate programme in September 2023. 

Deloitte UK IT Audit & Assurance director Adam Conway-Howe said: “As technology and digitalisation continues to transform the world of business, it’s more important than ever that our people are aware of the opportunities and risks this creates for our clients. 

“As part of the world-class training and development Deloitte provides for our people, we are excited to offer those joining our IT Audit & Assurance and Risk Advisory businesses the opportunity to gain a post-graduate degree in Digital and Business Risk Management from this fantastic university. 

“Created in close collaboration with Edinburgh Napier to ensure the programme is tailored specifically to the needs of modern businesses, this MSc offers a unique learning experience for our people right from the outset of their careers, alongside the practical experience they gain working at Deloitte.” 

The custom-made programme is being delivered at Edinburgh Napier’s Business School, in partnership with its School of Computing, Engineering and the Built Environment. 

Edinburgh Napier University Business School Dean Professor Christine Cross said: We worked closely with Deloitte to develop an understanding of their educational needs and deliver a programme that aligns with those requirements.” 

During the UK’s Mental Health Awareness Week (15-21 May) data released by Grant Thornton UK shows that almost two thirds (61%) of mid-market business leaders say the uncertain economic climate is negatively affecting their stress levels and mental wellbeing.    

Grant Thornton’s bi-monthly Business Outlook Tracker research, which polls mid-market business leaders, showed that economic optimism plummeted by 7% since February 2023, to 3% below the rolling average since the research began in 2021. Leaders’ confidence in the funding position of their businesses has also taken a hit, dipping 11% since February, to 6% below the rolling average.   

Correspondingly, investment in wellbeing and mental health is an increasing priority for mid-market business leaders. Around two thirds (65%) intend to increase their investment in mental health in the coming year (up 14% from 2022).  63% say mental health forms a key part of their inclusion, diversity and wellbeing strategy, up from 51% in 2022.   

Employers’ awareness of the importance of investing in mental health has led to an increased number of businesses offering counselling, training, providing mental health first aiders and checking in with their people more regularly.   

Grant Thornton UK people advisory associate director Maddie Wollerton Blanks said: “Leading a business is a high pressure, high intensity role even in the steadiest of economic climates.  Whilst leaders have demonstrated remarkable levels of resilience over the last few years, this research shows that the ongoing pressures of managing the uncertainty are having a negative effect on wellbeing.   

“Whilst our study looks specifically at leaders of mid-market businesses, wellbeing is vital to productivity for all employees. Having a mentally healthy workforce at all levels of the business isn’t an optional extra, it’s a commercial imperative.   Healthy people are better able to respond to stress and pressure, which is why it’s vital that employers invest in wellbeing and mental health support for their people and for themselves.”   

Five ways employers can help their people to manage stress in a high-pressure environment

1. Hybrid, flexible working that genuinely feels inclusive supports wellbeing – 91% of 2206 respondents to an internal Grant Thornton survey said that being able to work when and where works best for them supports their wellbeing – 93% said it also allows them to be more productive and feel more in control  
   

2. Offer access to independently provided counselling and/or trained Mental Health First Aiders (colleagues who are trained to listen, reassure and respond – even in a crisis) provides a valuable resource for people to confidentially discuss things that are affecting them 

3. Visible role models and open discussion through internal channels to highlight mental wellbeing issues creates opportunities to learn and fosters an inclusive, supportive culture – Read Bethan’s story – Battling Burnout and find out more about how you can bring your I&D strategy to life 

4. Wellbeing days – in recognition of busy, pressured periods within the business offering wellbeing days, additional paid days to be used within a certain timeframe, are a great way to encourage people to take time off to care for their wellbeing 

Supporting financial wellbeing with employee benefits – providing benefits such as life assurance, income protection and critical illness will give employees a stronger sense of confidence in their own financial circumstance.  

A study by occupational charity caba has shone a light on addiction and addictive patterns within the accountancy profession, with almost 1 in 5 (19%) accountants aged 30 or under admitting that their drinking habits have negatively impacted their work or personal life.  

This dropped to just under 1 in 10 (9%) across all age groups (18-65+). 

The study of 1,919 accountants from across the UK found that 1 in 4 (25%) regularly drink alcohol to lift their mood. Almost two-thirds (60%) said they regularly exceed the daily recommended intake for alcohol, with almost 1 in 10 (9%) saying they do so on a daily basis. 

Meanwhile, 1 in 5 (20%) respondents admitted to drinking so much that they were unable to remember the evening before. This was most prevalent within the under-30 age group, with 1 in 6 (15%) saying they experience alcohol-related blackouts at least once a month. 

A quarter (25%) of respondents said that a friend, relative or doctor had also expressed concern over their drinking habits.  

The study also looked at other forms of addiction, such as gambling and recreational drug use. 

1 in 50 (2%) respondents said they regularly participate in a form of gambling such as sports betting and online casino games. Of these, almost two-thirds (63%) said they gamble at least once a week, a quarter (26%) said they spend over £400 ($498) a month, and a third (33%) admitted to not always being open with their friends and family about their gambling habits. 

1 in 6 (15%) accountants who regularly gamble said that they had been worried about their finances as a result of their gambling habits, and 1 in 10 (11%) said they have had to borrow money from someone else. 

While the number of respondents who said that they themselves take recreational drugs to lift their mood was low (1%), almost 1 in 10 (8%) stated that they had witnessed a colleague taking drugs. This rose to 1 in 7 (14%) for those aged 30 or under.  

When asked whether they know someone within the accountancy industry who they think has an addiction, 1 in 7 (14%) accountants said that they did. 

Commenting on the findings of the survey, psychologist and addiction specialist, Stefan Walters, said: “I’ve worked with many accountants and financial professionals over the years to support them through addiction. It’s a common issue, particularly for people in high-stress, high-performance jobs. The pressure of having to be a perfect version of yourself can take its toll, and often addictive behaviours arise as a coping strategy. 

“The most important thing to remember is that you’re not alone. There is no shame in seeking help, and there’s always someone out there who is there to listen.” 

caba CEO, Cristian Holmes, concluded: “Being an accountant is a highly respected and coveted career path, and the profession has many perks. However, the demanding nature of the job often means long hours and a lack of margin for error, which can result in high levels of stress and burnout for some people. 

“To combat these feelings, we often turn to habits that are effective in lifting our moods. Unfortunately, many of these can become addictive over time and can subsequently be detrimental to our mental, physical, and financial health if left untreated. 

“By conducting this research, we’re looking to raise awareness of addictive behaviour in the profession and create an open, honest dialogue that reduces the stigma that currently surrounds addiction and mental health. We want to help people to spot the signs and to know how to get help for themselves and others.”