Recent graduates find smaller firms better for work-life balance

After working two years at a Big Four accounting firm in Chicago, a smaller firm was the perfect choice for Jen Sheehan. A resident of Highland, Sheehan achieved her CPA license in August.

A 2022 graduate of Indiana University at Bloomington, Sheehan spent two years commuting to Chicago from Highland. The job was rewarding but also highly demanding of her time. Sheehan soon looked for something closer to home that would provide her with greater work-life balance. She found a position with Highland-based Mark Machnic CPA, which is minutes from her house.

“I’m much happier in a smaller firm,” Sheehan said. “Work-life balance is a powerful recruiting tool, especially for smaller firms. Recruiters on LinkedIn are always fishing for people. If you have an accounting degree, everybody is looking for help.”

The accounting industry faces a growing shortage of accountants and certified public accountants. But firms in Northwest and North Central Indiana are finding ways to recruit employees through grassroots efforts, highlighting strong company culture that supports work-life balance. They also offer support for employees studying for their certified public accounting license.

Career choices

The world of accounting is dominated by four companies: Deloitte, Ernst & Young, PricewaterhouseCoopers, and Klynveld Peat Marwick Goerdeler. But across the country, many CPA firms are competing for a diminishing stream of talent emerging from colleges and universities, as well as those who are attempting to earn their CPA accreditation.

An accountant is a professional who has earned at least a bachelor’s degree in accounting, while a CPA is a professional who has passed the rigorous CPA examinations. In Indiana, there are about 6,000 current and aspiring CPAs and related professionals, according to the Indiana CPA Society.

“You don’t have to be a CPA to have a good career in accounting. There are a number of really good job opportunities without the CPA certification,” said James Jewison, a portfolio accountant with NWI Development Group in Chesterton. “A lot of companies aren’t seeking a CPA, just someone with an accounting degree.”

That trend is especially true with the shortage of recruits.

According to the U.S. Bureau of Labor Statistics, there are 340,000 fewer accountants in the U.S. than there were five years ago. The government agency projects there will be about 130,800 openings for accountants and auditors each year for the next 10 years. The open positions are largely necessary to replace those who are leaving the workforce, according to government data.

Jewison said he receives numerous calls and emails from recruiters looking to fill open accounting positions in Indiana and across the United States. He earned a bachelor’s degree in accounting and a minor in financial management from Purdue University in 2020.

“I’m getting calls all the time for openings for staff accountants. They’re going out of their way, and I’m not even applying for these roles. That’s indicative of the current need,” Jewison said. “Even a year or so ago, I didn’t have as many recruiters and firms reaching out. They weren’t taking the initiative that they’re doing now.”

Industry shortage

The exodus of accounting professionals from the field has created a shortage that academic training programs are unable to keep up with, according to a 2023 trends reports published by The American Institute of Certified Public Accountants. That report also showed a 33% decline in first-time candidates sitting for the CPA exam between 2016 and 2021. Data showed a decrease from 48,004 first-time candidates in 2016 to 32,188 in 2021.

This decline in certified public accountants is leaving agencies and businesses in the lurch when it comes to finding qualified individuals who can prepare financial information and conduct audits. But there is more to the decline in the number of professional accountants than significant numbers of retirees.

Ruanjia (Katerina) Liu, an assistant professor of accounting at Valparaiso University, predicts a continuing decline in the field due to the increased use of artificial intelligence and other technology platforms increasingly used by the big four firms.

Robotic process automation (RPA) uses programmable software bots that automate repetitive tasks in accounting, like invoice processing, data entry and financial reporting. With RPA, people are not needed for these tasks, which saves time and money for the bigger firms that have adopted these capabilities. Another technological tool increasingly used by accounting firms is Tableau, which is used to strategically analyze massive amounts of financial data, such as pricing trends and forecasting, to improve future outcomes.

“Technology is replacing some of the needs for accountants,” Liu said. “This has been going on for several years and is resulting in declining enrollment for accounting. Because of this increase in technology, many students are turning to computer science as a major.”

However, she also noted that accounting students and professionals who gain knowledge and expertise with AI, RPA and other technological platforms will be in demand by larger firms and government agencies. She said experts who can implement and develop accounting programs are also needed. Having a CPA certification will remain important, but the Big Four accounting firms will want more from their employees, she added.

She added that many academic journals are seeking papers that discuss the integration of artificial intelligence into the accounting field.

“This is gripping the world’s industry,” she said.

How Region firms recruit

Smaller firms, like those in Northwest and North Central Indiana, handle individual and small business accounts. They typically recruit people with traditional skills, Liu said.

McMahon & Associates in Munster still recruits through referrals from staff and community professionals, said Terry McMahon, president and CEO.

Smaller firms, even those with several hundred employees, have garnered a reputation for an office culture that embraces work-life balance.

That’s just one of the tools a smaller firm can offer. When recruiting employees, these firms demonstrate a close-knit environment where employees are seen as people and not just another number.

Anna Hulstedt, a new staff accountant at Kruggel Lawton CPAs in South Bend, joined the company after working as an intern while she was an undergraduate at Grace College in Wynona Lake.

Hulstedt said it’s important for recruiters to establish real relationships with accounting students to know if they will be the right fit for a company’s culture.

She remembers the human resources director at Kruggel would visit Grace College on recruiting missions. The director would invite the accounting students out for ice cream and introduce them to current Kruggel employees, so they could network and learn more about the profession. That struck a positive chord with Hulstedt when it came to plotting the course of her career.

“It was cool to talk to people in the accounting field who could answer questions about the accounting world,” she said. “It’s about looking at people as people, not as numbers.”

Hulstedt works on the firm’s nonprofit assurance team as an auditor. Initially, she wasn’t supposed to start her new position until Oct. 21. However, Kruggel Lawton CPAs invited her to begin work earlier than expected on a part-time basis while she prepared for the CPA exams. It was that kind of flexibility and support from her employer that Hulstedt said is needed across the industry that will help with recruitment.

“Firms need to offer flexibility, and I feel like I have that (with Kruggel Lawton),” she said.

Other new accountants report similar experiences.

Gabrielle Piasky graduated from Purdue University Northwest in May 2024 with a degree in accounting. She is an audit associate at Dauby O’Connor & Zaleski (DOZ), which has headquarters in Carmel. Before graduating, she completed an internship with Ernst & Young, one of the Big Four companies, as well as an internship with DOZ. When she completed her degree and began to search for a position, it was a no-brainer. She wanted the atmosphere she experienced at DOZ.

“It’s nice to be recognized more, instead of being a number, an ant in a colony,” said Piasky, who has wanted to be an accountant since taking classes in high school.

In addition to her duties as an auditor, Piasky joined the DOZ recruiting committee to talk to students and prospective candidates at career fairs around the area. Although she hasn’t yet gone on her first recruiting assignment, Piasky said she would highlight the numerous career track opportunities in accounting.

CPA examination support

Smaller CPA firms in Indiana are also supporting employees who are attempting to earn their CPA certification. Having the license isn’t required for many accounting positions. But for people who want to open their own practice or assume senior accounting and finance roles with higher salaries in companies and other organizations, the certification is typically required.

There are several requirements to take the CPA exam. Candidates usually need a bachelor’s degree in accounting, finance or a related field. Most states, including Indiana, require candidates to complete 150 semester hours of college credit, which means additional coursework beyond the 120 hours required for a bachelor’s degree. The CPA is comprised of four separate examinations, with each section taking about four hours to complete. It takes a score of 75 or higher to pass the rigorous assessments.

It takes a significant amount of time to study for the different exams. Sheehan explains that her company provided her with paid time off to study for the comprehensive CPA examinations. That generous support from Mark Machnic CPA allowed Sheehan to continue to maintain her work-life balance.

Despite the difficulties of passing the four separate tests, Sheehan said it’s worth it for her career. Although an accountant can prepare taxes without the license, a CPA is required to sign off on the returns.

“You can have a long career in accounting without it, but in the shortage, it’s a big deal. In larger firms, you can’t become a manager or supervisor without the CPA, and in private practice, you have to have your CPA license to open your own firm,” she said. “You also get paid more for being a CPA because it’s a higher certification.”

Hulstedt agreed, noting that without the CPA certification, one isn’t likely to play a role as a senior staff member or manager at an accounting firm. She said having your CPA “opens the doors for you to do more at a firm” and provides clients with an extra level of assurance their accountant has gone through the rigorous examination process.

“You can serve clients better. The CPA is a lot of work, but it helps protect our profession,” said Hulstedt, who just completed the fourth exam for her CPA certification. At the time of this writing, she was still waiting for her results.

Rather than vie for her CPA after graduating, Piasky entered a master of accountancy program at her alma mater. She said the MA program will help her earn the hours she needs to sit for the CPA exams.

“Once I’ve finished my masters, I plan to prepare for the CPA exams,” Piasky said. “I’m only going to move up from here, and it’s only going to get harder.”

Read more stories from the current issue of Northwest Indiana Business Magazine.