As if tax season wasn’t stressful enough, Canada is also dealing with an accountant shortage.
Driving the news: Canadian finance and accounting hiring managers are feeling overtaxed this tax season, with 90% reporting that they are experiencing challenges due to a widespread accountant shortage, according to a new survey by Robert Half.
- Over 40% of these respondents said the shortage has increased inefficiencies and delays, while another 34% said it has led to worries over accounting accuracy.
Big picture: The number of new accountants is believed to be dwindling in North America, as the job is seen as unattractive to younger folks. Math-brained students would rather go into other jobs that pay better, require less training, and quite simply, seem less boring.
Why it matters: This shortage is potentially responsible for a recent rash of high-profile accounting mistakes, which appear to be happening more frequently. Just this year, major companies like Lyft, Rivian, and Planet Fitness all released earnings reports with typos.
- Last year, over 720 U.S. companies cited insufficient staff in accounting and other departments as the reason for errors, per Bloomberg — a whopping 30% increase from 2019.
Bottom line: Accountants are important. The global economy couldn’t run without them, and we wouldn’t get our taxes done (TurboTax is too scary). A severe shortage would cause a mess in Canada, especially as demand for accounting services continues to increase.—QH