New tax changes will strain tight accounting workforce

The accounting industry is facing the same challenge that many other industries are facing – finding skilled employees to replace the ones that are retiring from the industry. 

“One of the trends we’re seeing across all industries is a shortage of accounting professionals,” said Mike Stoudt, managing partner at RKL LLC. And he said it doesn’t see it getting any better anytime soon. “There’s an enrollment cliff in higher education right now. There’s less college students and less students majoring in accounting.” 

And this year, Stoudt said, it’s more important than ever for companies to have an accountant that is up to date on all the latest changes in federal tax law, which are significant this year. 

One of the biggest things companies need to be looking at is the 100% bonus depreciation for any fixed price asset, such as computers, machinery or trucks, that have been bought since Jan. 20. 

“It saves cash for the taxpayer,” Stoudt said. “This is really a cash flow issue. It’s meant to keep the economy going. If you spend more money this year, you can deduct it this year. 

He said companies will now have that extra cash this year that they can use where they need it elsewhere in the company. 

Section 179 deductions can also benefit many businesses, because it raises the deduction limit from $1.24 to $2.5 billion for equipment bought in a given year. 

Previous to these changes, deductions would be spread out over five years. 

He said changes in taxes on tipping and overtime will also impact many employers. 

Having an accountant that is up to date on the latest business deductions is key to being able to save that money. 

But, with the shortage of accountants, accountants are demanding higher salaries, which places having an in-house attorney out of reach, especially for many small to medium size firms. 

As a result, many firms have chosen to outsource their accounting needs, and Stoudt said RKL is one of the firms that has adapted to that growing demand. 

For the past few years, the firm has been offering virtual management solutions that not only offer outsourced accounting services – basically serving as a company’s controller and CFO —  but can also help clients with human resources services, handling payroll, compliance and other issues. 

But with 650 accountants of its own, Stoudt said, RKL is trying to do more than help with workarounds. 

He sits on the board of trustees at Moravian College and has been working there, and with other colleges in the region to get more students interested in accounting as a career. 

But he said it can’t just stop there. To meet the long-term demand, accounting professionals are also reaching out to students on the high school level to get them interested in a career early and starting on the path they need to succeed.