According to the Bureau of Labor Statistics, an additional 136,400 job openings for accountants and auditors is expected each year for the foreseeable future. And if that statistic isn’t enough for you to believe that this industry is booming, just check the financial professional job openings on LinkedIn.
But why are we seeing a growing need for professional financial services? Here are five reasons why accountants and advisors are so highly sought-after:
1. Baby Boomers and Retirement
The near future will bring a mass exodus of baby boomers from the American workplace. By some estimates, roughly 10,000 baby boomers will reach retirement age every day between now and 2030.
This trend impacts the financial industry significantly, with the American Institute of Certified Public Accountants (AICPA) anticipating that three-quarters of today’s accountants and CPAs will retire within the next 15 years. This shift makes it challenging for consumers to find financial professionals with the skills and experience of those leaving the sector. Financial professionals may discover that their skills are in greater demand simply because many of their mentors and competitors have left the workforce.
2. A Low CPA Pipeline
According to Bloomberg Tax Analysis, financial workers declined by 17 percent from 2019 to 2021. Put simply, there aren’t as many new financial professionals entering the workforce, making it harder for companies to secure reliable financial services.
One reason for this may be the industry’s image problem—“accountants just aren’t cool,” says the Washington Post. While professional financial services cover far more than mere accounting procedures, the lack of Americans entering the field only contributes to a growing shortage.
On the plus side, this creates a meaningful opportunity for those considering a career in finance. When demand outstrips supply, job seekers may discover that they can secure competitive salaries and benefits (and help others see just how “cool” their work is).
3. Longer Lifespans and Longer Retirements
Americans are living longer than ever. But unless the retirement age changes drastically, Americans will spend more time than ever in retirement. Consequently, they may need professional financial services to help them plan for their golden years.
This need may be one of the biggest industry drivers in the immediate future. Those weighing their retirement options may need guidance on choosing between IRAs and other investment vehicles, for example. And despite the advent of Robo-advisors and similar technologies, investors still require the attention of a human, financial advisor who can help them create an investment plan.
4. The Role of Technology
The business community has placed great faith in the rise of machines. But business leaders are discovering that there’s still a need for human judgment and political sensitivity. As a result, financial professionals are a hot commodity in the business community—especially when they can translate data and information from technology into valuable insights.
At Concorde, we also use technology to enhance our day-to-day work. Instead of getting buried under manual tasks, we use the Concorde Platform to handle everything from form filing to e-signatures, research, file storage, relationship management and compliance processes. If you can learn to use technology to your advantage, you’ll have more time to spend on finding solutions for your clients.
5. Mentorship and Guidance
Here’s a surprising reason financial professionals are in high demand: younger generations have recognized the need for guidance on future mortgages, savings, and retirement plans. Only some millennials received a comprehensive financial education after high school. Many young adults struggle with credit card debt or student loans and could use advice on creating a workable financial plan.
Financial advisors can therefore be an asset in shaping their clients’ financial futures and provide valuable support that gives them confidence for the rest of life’s journey.
Professional Financial Services You Can Trust
Concorde Investment Services provides support for both individual investors and businesses, bringing a balance between our team’s expertise and the latest technology. Contact us today to learn more about how we can help you.
This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is not indicative of future results, and forecasts are inherently limited and should not be relied upon as an indicator of future results.
Data contained in this material was obtained from third-party sources believed to be reliable; however, CIS, CAM and CIA do not guarantee the accuracy of the information.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services through Concorde Asset Strategy, LLC (CAM), an SEC-registered investment advisor. Insurance offered through Concorde Insurance Agency, Inc. (CIA)