KTVN in Reno has covered the CPA shortage and in order to do so because local news reporters rarely even think about accountants much less report on them, the news spoke to the incredibly candid Mark Bailey, managing partner and founder of Excelsis Accounting Group. In a sea of talent shortage articles quoting boomers who think 70-hour weeks build character, it’s refreshing to see someone speak so openly about the profession’s biggest issue.
“I think that our profession really has abused those at the entry level and discouraged them from coming into the profession,” he said. “It’s not uncommon for an accounting firm to require their lower-level staff, up to four or five years and even after that, to work 80 or 90-hour weeks.”
That’s something, he says, newer generations of workers aren’t going to do. Even college enrollment in the field is down.
“I know at [University of Nevada, Reno] they have an online master’s program and it’s only got 47 people in it; they want to add people to it,” Bailey said.
Bailey also mentions an issue we wrote about last summer: firms in higher cost of living markets are hiring people living in lower COL cities to work remotely, paying those people HCOL salaries.
“I’ll interview someone and then, unfortunately, someone from San Francisco will hire them remotely and pay them based on the San Francisco wage scale, which we can’t match,” he said to KTVN. We know of at least one mid-tier firm headquartered in the Midwest that had this very problem, there are no doubt many more we haven’t gotten the scoop on.
To put this specific issue into perspective, here are salary ranges for a handful of public accounting positions in Reno and San Francisco according to the 2024 Robert Half Salary Guide. 25th percentile is the low end, 75th is the high, we’ve skipped Bob’s 50th percentile figures because who cares (about any of this, really). Reno is 4% higher than national average, San Francisco 35%. The figures below do not include bonuses, benefits or perks and are obviously averages.
| Position Title | 25th Percentile | 75th Percentile |
|---|---|---|
| Tax Associate | $54,860 | $77,740 |
| Senior Tax Associate | $69,940 | $96,980 |
| Manager (Tax) | $96,460 | $136,240 |
| Senior Manager/Director (Tax) | $129,480 | $199,680 |
| Associate, Audit/Assurance | $50,960 | $72,280 |
| Senior Associate, Audit/Assurance | $60,060 | $86,060 |
| Manager (Audit) | $93,600 | $129,740 |
| Senior Manager/Managing Director (Audit) | $126,360 | $181,220 |
Versus:
| Position Title | 25th Percentile | 75th Percentile |
|---|---|---|
| Tax Associate | $71,213 | $100,913 |
| Senior Tax Associate | $90,788 | $125,888 |
| Manager (Tax) | $125,213 | $176,850 |
| Senior Manager/Director (Tax) | $168,075 | $259,200 |
| Associate, Audit/Assurance | $66,150 | $93,825 |
| Senior Associate, Audit/Assurance | $77,963 | $111,713 |
| Manager (Audit) | $121,500 | $168,413 |
| Senior Manager/Managing Director (Audit) | $164,025 | $235,238 |
So a tax associate in Reno offered the high end of salary to work remotely for a San Francisco firm could theoretically make $23k more money for the same work, a manager is looking at closer to a $60k bump. In an increasingly expensive world, why wouldn’t an accountant choose the more lucrative option?
Mark goes on to say that his firm has done the smart thing and limited the work they do take on, allow their staff to work remotely, and try to avoid overtime “because when you do work overtime, it kind of impairs the other aspects of your life.” Kind of.
Full segment:
If there is an accounting shortage all the big accounting firms should not have laid off so many who were working in advisory (especially the ones only in it for a few years) and transferred them to audit and tax and made it a learning experience until advisory business goes back to normal. Instead everyone sees this and says why pay for a masters in accounting just to get laid off.
Agree