(NewsNation) — An alarming trend in America is the severe shortage of accountants, which poses a significant concern not only for businesses, but for all consumers.
Meanwhile, artificial intelligence (AI) is stepping in to fill these gaps, raising the question: Will it make accounting as a career obsolete?
How will accounting shortage affect everyday Americans?
Many rely on accountants for their taxes, and a shortage can lead to overworked professionals and errors that may attract unwanted attention from the IRS.
Additionally, those with investments or 401(k) accounts could see mistakes that impact a company’s stock price, gradually weakening the overall economy due to a lack of accountants.
The shortage can also slow economic growth by making it more difficult for businesses to properly manage their finances and make decisions about expanding, which can lead to higher prices.
How is artificial intelligence playing a role?
Salaries for entry level accounting positions aren’t very high, and it can take years to build a loyal client base. As a result, fewer people are graduating with accounting degrees than in the past.
Earning the title of certified public accountant (CPA) requires at least a master’s degree and passing a grueling four-hour exam.
The American Institute of Certified Public Accountants found a 33% decline in first-time candidates taking the CPA exam from 2016 to 2021. Additionally, it reports the profession is aging, with about 75% of CPAs at retirement age.
Meanwhile, AI is already playing a role, with several firms using it to help streamline work and startups dedicated to implementing AI tools to help people with tax preparation.
TurboTax, for example, announced last year it will use generative AI in its tax preparation services.