The accounting industry is in the middle of a wild ride! Private equity money, work-life balance drama, AI taking over – it’s enough to make your head spin. Blake Oliver and I dug into all these topics in our latest episode of The Accounting Podcast.
Through all the craziness, one thing’s clear: accountants have got to stay on their toes to make it in this business. Embrace the new, take care of yourself, and sharpen those skills – that’s the trick.
Will Private Equity End the Partnership Business Model?
You know it’s serious when a heavyweight like Grant Thornton gets gobbled up by private equity. New Mountain Capital swooping in shakes up the partnership model that’s been the foundation of accounting for decades.
In partnerships, profits end up lining partners’ pockets instead of getting pumped back into the firm. Private equity cash could be just what’s needed to drag firms into the future. Blake nailed it on the show: “The argument in favor of this sort of investment is that private equity can invest in modernizing technology, modernizing the firm in a way a partnership doesn’t.”
But here’s the catch – private equity folks want their dough, which could mean partners’ paydays take a hit down the road. Accounting firms have to thread the needle – get that sweet private equity money but keep the partner track golden so that staff want to work hard and stick around to get there.
To Attract Talent, Firms Must Improve Work-Life Balance
Speaking of incentives, our discussion on working hours and job satisfaction in accounting was eye-opening. According to a report by Big 4 Transparency, a crowdsourced compensation website, the big cheeses – equity partners – are grinding 50+ hours a week on average.
“Could this be part of the problem with convincing people to stay in accounting?” Blake pondered. “You would think that the longer you stick around, the better off you’d be. You make more money. But you also work more hours, so it doesn’t add up.”
Could this be part of the problem with convincing people to stay in accounting? You would think that the longer you stick around, the better off you’d be. You make more money. But you also work more hours, so it doesn’t add up.
Blake Oliver, CPA
And get this: No accounting firm had an average workweek of 40 hours or less.
Accounting firms have to tackle work-life balance head-on to keep top talent from running for the hills. Flexible work schedules, using tech to work smarter, not harder – firms need to get creative. Young people want a life outside work, and if we don’t get with the program, we’re going to lose out on the best of the best.
Artificial Intelligence Could Help
AI is about to shake things up big time in traditional accounting. ChatGPT and tools like it paint a wild picture – AI-powered insights transforming how we crunch numbers and dazzle clients.
Blake shared a great example: “When I met with clients as a manager, going over their financials, clients would have a question. And in the meeting, I couldn’t answer their question right then and there because I would have to go and do some research. But if I could use a chatbot to ask the question, I could review the answer real quick and then maybe give them the answer right then and there, rather than saying, I’ll do some research and get back to you. That saves a lot of time.”
The trick is using AI to make us accounting pros look good, not put us out of a job. With AI doing the heavy lifting on numbers and insights, we can focus on the high-value stuff clients need. But to make AI work for us, accountants must carve out time to level up their tech skills.
Navigating the Future
Accounting is at a fork in the road, juggling private equity plot twists, work-life balance meltdowns, and AI’s world takeover. It’s a wild ride! But every stomach-churning dip is a chance to throw our hands up and holler. Stay loose, take care of your crew, and always be first in line for the latest tech – that’s how we’ll come out of this ride, grinning.
To stay updated on the latest in the accounting profession, listen to me and Blake Oliver ride the accounting roller coaster every week on The Accounting Podcast.