There’s no doubt that the makeup of CPA and accounting firms is changing. Just as technology continuously changes to affect the speed and scope of our service delivery, the “people” component also is in flux and a major factor in the way firms work with their clients, especially for firms that understand client advisory services.
But there’s an elephant in the room. Should firms hire “non-traditional” or non-accounting people in their firms?
The AICPA’s 2021 Trends report states that “Accounting graduates trended downward in the 2019–2020 academic year, with decreases of 2.8% and 8.4% at the bachelor’s and master’s levels, respectively.” Coupled with a steady decrease in new students majoring in accounting—and that 75% of CPAs will have reached retirement eligibility by 2020—firms are facing a significant talent shortage.
Many suggest that the path forward is to try to make the profession “sexy” for Gen Z (born between 1997-2012). However, one of Gen Z’s primary interests in the workplace is having a positive impact on the world. Accounting also suffers from a PR issue, with the most common descriptions being “dull,” “boring,” “unexciting,” and virtually every other synonym for uninteresting. While we can argue that accounting isn't quite as boring as it's often portrayed, the profession is hardly going to save the world. This sort of image issue will likely take decades to change.
Other alternatives are to make the CPA exam easier, remove the 150-hour rule, or partition the certification into specializations. Commentary from the AICPA and its membership seems to disagree with this path forward because it dilutes the brand, so that outcome is equally unlikely.
So what is the solution?
At Prix Fixe, because we specialize in the restaurant space,one of the requirements to work for our firm is experience in the hospitality industry. We fundamentally believe that it gives our team the understanding and empathy required to work with some of the most overworked and underpaid entrepreneurs in our economy. However, we quickly discovered that our requirement also attracted a lot of non-accountants seeking a career shift out of the restaurant industry, leading us to ask: How much should firms hire “non-traditional” or non-accounting candidates in their firms?
Yes of course, you should, especially if you niche like we do. Here are some tips and guidance on how to handle the hires and navigate the process.
What to look for In a potential employee?
When looking at a resume, the strengths aren’t going to be as clear as they would be if you were looking at an accountant’s resume. For example, instead of looking for skills and experience, what you’re primarily looking for is experience that lends well to the tasks an accountant will perform.
Accountants are heavily process-driven, but also need to understand how to perform a wide range of tasks with precision and accuracy. In our hospitality world, we see a number of positions that excel at these skills, especially in higher end restaurants. These include bartenders, sommeliers, and chefs. All of these positions require an encyclopedic memory, and are continually improving and iterating on their repeated processes.
Looking at your own business, if you are focusing on specific industries, what positions within these industries share these skill sets? Engineers? Nurses? Paralegals?
Onboarding your new employee
It's worth noting that before making the hiring decision, a clear conversation needs to be had with the candidate about your expectations. A substantial portion of the conversation should be around training. For Prix Fixe, we require non-accountants to take financial and managerial accounting courses from accredited institutions. If a candidate is looking to make a career change, this will be a huge benefit to both of you.
Once you have made the hire, the monumental task of onboarding begins. Someone with no accounting background will need substantial training commitments. Planning your training around any paid training such as college courses or online courses should coincide with the tasks you are training your new employee on. It's important to also note that you should be very thorough in your review of their work, providing continuous feedback with a theoretical explanation of why something needs to be done a certain way.
What’s the timeline and investment?
The investment of hiring and training a non-accountant is daunting; it’s the single largest drawback to this hiring practice and certainly shouldn't be a first hire. You should also be prepared to shell out a considerable amount of professional training. It's just unreasonable to assume you'll have the capacity to be a professor of accounting while trying to run a business. You can set up an education reimbursement policy, laying out the requirements for success so that any employee who falls short will need to pay for a larger portion of the educational cost.
The timeline is also considerable. Many firm owners suggest that it takes up to six months to truly get an accountant up to speed. For a non-accountant, that number is closer to 18 months in our experience.
Are non-traditional hires worth the effort?
There is something to be said about investing in someone’s future. Telling a hire that you are willing to make a significant investment of your time and money in them is an incredibly empowering statement. It buys loyalty and compassion and actualizes an employee right from the start. In the end, some of our best hires have been non-accountants, and while the risk, investment, and time commitment is high, we wouldn't trade those hires for the world.
Disclosure: This is a paid partnership with Intuit
