Last Friday, I had a few beers with an old colleague who has been a Senior Manager at a mid-sized firm for almost eight years. He is the type of person who truly enjoys going to work every day. He generally arrives first on the ground floor during busy season and is often the last one to leave (after shutting the lights off).
However, when I asked him how his team would be this upcoming year, he didn’t provide his typical response of “We’ll gauge how it goes.” He just stared at his beer. After some time, he finally responded:
“I think I am resigned.”
He continued to explain:
“I come to work every day and put everything I have into the job, but the firm is not hiring enough people to support me and therefore, I am no longer the firm’s hero.”
This wasn’t merely a comment associated with a bad day at work; in reality, this was the sound of a system collapsing.
If you run or are part of a firm right now, you know firsthand how your colleague feels. Public accounting is no longer a rite of passage; rather, it has become a trap. Current circumstances can be summed up in three ways:
- Massive lack of talented individuals
- Increasingly complex tax laws
- Today’s 24/7 clients
As a result, the current practice of public accounting and all practitioners engaged in it reflect these three issues.
Number Crunching Partners in Fear of Losing Their Jobs
Let’s face reality: there will be an immense workforce shortage in the accounting industry by 2026.
The bookkeeping & accounting profession has been warning the world, but the actual crisis may far exceed expectations. Most estimates say that 75% of current CPAs are over retirement age. Meanwhile, the number of new accounting graduates has steadily declined over the past decade.
Why is this happening? Any responsible 20-year-old considering accounting likely knows:
- The 150-hour requirement is difficult to obtain
- Additional degrees are expensive
- Higher-paying jobs exist in tech and finance
The return on investment for becoming a CPA often isn’t worth it. For the firm, this translates to roughly $5,000 in lost productivity per vacant Senior Associate.
The Misconception of Accountants’ Income
Many people outside of public accounting think accountants are wealthy. While partners at Big Four firms may do well, the vast majority of seniors and managers who actually drive the firm do not see compensation that matches their workload.
Consider this: a $95,000 salary divided by 80+ hour workweeks in spring results in hourly rates comparable to fast-food managers. Add $100,000+ in student loan debt, and the financial hardship is very real.
Why the Busy Season Never Ends
Previously, you could work hard from January to April, then take the summer off. That is no longer true. Client demands have increased drastically due to changes in the tax code, consulting requests, extension filings, and estimated taxes.
Many firms are now turning to outsourced business tax filing services to manage the growing compliance burden and reduce pressure on internal teams. This new, constant state of emergency has resulted in the current level of burnout we are witnessing in the CPA industry. A recent survey found that 99% of CPAs reported experiencing some level of burnout, which cannot continue indefinitely. A firm cannot continue to operate as a professional business when all of its employees are one bad day away from quitting.
The Reality of the Empty Desk
Managers are quitting multiple times per week due to 70-hour workweeks. The employer responds by sourcing additional people while asking remaining staff to “step up.”
Three months later, desks remain empty. Current employees are working 90-hour weeks, quality slips, and clients become unhappy. This scenario is occurring at well-respected firms nationwide.
How to Put the Bleed to an End
If you're a firm owner, you must accept that local hires alone won’t solve the problem. To save your firm and your sanity, you need to change how work gets done.
Stop Doing "Grind" Work Locally
Why have a US-based CPA charging $60–$70/hr for basic bookkeeping or initial tax prep? That baseline work should move to global teams.
This isn’t just about saving money, it also increases retention. By moving repetitive work to an offshore partner like Xconcile, local employees can transition from data-entry roles to advisory positions.
The Change to Co-Sourcing
Outsourcing used to have a bad reputation. Co-sourcing is different:
- Access a dedicated offshore team trained in US GAAP
- They work in your software following your firm’s rules
- Your company gets a cushion, avoiding being behind 40 hours every Monday
Shift from Billable Hours to Value-Based Pricing
Billable hours reward slow work and punish efficiency. Modern firms are moving to value-based pricing, decoupling time from money, allowing employees to earn more while working less.
To the Partners of the Firm
This is a paradigm shift. The “pay your dues” mentality no longer motivates the new generation of accountants. They want careers with a life outside work.
To retain top talent, you must:
- Appreciate the value of their time
- Provide necessary resources for success
- Protect their mental health
In 2026
The “underpaid and overworked” label is a symptom of a century-old business model that has outlived its usefulness.
The better version of accounting in the future looks like this:
- The US team has time to talk with clients and solve problems
- Employees go home by 5:00 PM
- “Grind” work is handled by a global team working while you sleep
Stop chasing the elusive local “unicorn” hire. Build a global team that supports your firm. Xconcile helps firms implement co-sourcing models that increase efficiency while protecting team well-being. Your employees and clients will both feel the difference.
