EY invests $1Bn to revamp the accounting profession, making it attractive for young professionals

• More than 300,000 accountants and auditors in the USA have left their positions over the last 2 years.
• Many CPA firms, small businesses and even the Big 4s are scrambling to fill the gap.
• Looks like EY is finding a solution… EY is making a big bet on the future of accounting with a $1 billion investment.
• How? Here is a breakdown 

What’s the big deal?

Over the last two years, more than 300,000 accountants and auditors in the United States have resigned from their positions.

According to the U.S. Bureau of Labor Statistics, approximately 136,400 openings for accountants and auditors are expected each year between 2021 and 2031.

Baby Boomers are retiring in large numbers. And the decreasing number of young people or Gen Zers studying accounting and taking the CPA Exam is unable to fill this gap.

Accounting and finance departments, in particular, are understaffed.

This shortage is evident across industries and sizes, but smaller and privately held businesses are getting more affected. And the situation is only expected to worsen in the future.

How is EY addressing the issue?

EY US plans to spend $1 billion over the next three years to revamp the accounting profession, as per their official statement.

This isn’t just about money; it’s about transforming the whole experience of being an accountant.

Here’s what’s in store:

Better salaries

EY is boosting salaries for new accountants to make their pay competitive with other business majors.

This means accounting graduates can expect some of the best-starting salaries in the business world.

AI Integration

EY is integrating cutting-edge AI technology into its audit and tax services. This will not only improve the quality of audits but also make the job more exciting and efficient.

Imagine AI helping with the tedious tasks, so you can focus on the more interesting parts of the job.

Launch of 360 Careers

The initiative, codenamed 360 Careers, will be launched in 2025.

This program aims to give new accountants a solid foundation, whether they want to stay at EY, start their own business, or aim for top executive roles.

“To be successful in a rapidly evolving landscape, professionals need to develop a diverse set of skills, including technological proficiency, and an understanding of the regulatory environment,” said Kevin Flynn, EY Americas Vice Chair Tax.

Also read: Big 4 firms scramble to win the consulting race. Investing over $4B in AI.

Why It Matters

Ginnie Carlier, EY Americas vice chair of talent, said in the release,

“Our goal is to make EY US the most preferred place to launch an audit or tax career and become a springboard for future business leaders—for our own organization and leading public and private enterprises.”

“Accounting is the language of business,” says Dante D’Egidio, a top EY executive.

By upping the starting salaries and integrating advanced tech, EY is not just making accounting attractive but also ensuring a steady flow of skilled accountants for years to come.

EY is also breaking down barriers to becoming a CPA (Certified Public Accountant) with programs like the EY Career Path Accelerator. This ensures that more people have the opportunity to join the profession.

Also read: Big 4 firms in India: Inside Deloitte, PwC, EY & KPMG career prospects, growth and salaries

Wrapping up

EY’s investment is a bold step to ensure the accounting profession thrives. By focusing on compensation, technology, and employee wellbeing, EY is setting a new standard.

This initiative not only benefits young professionals but also strengthens the profession’s role in the global market.